Acknowledging the current debate in Australia over the free trade agreement (FTA) with the United States, the U.S. Trade Representative's Office (USTR) says that it will not intervene.

But in a statement released August 12, USTR Spokesman Richard Mills pointed out: "We've made clear that the United States must certify that the implementation language fulfills the obligations under the FTA before the FTA can come into force. We reserve all our rights in this process."

President Bush signed the FTA on August 3, hailing it as "a milestone" in the history of the U.S.-Australia alliance. The agreement will eliminate duties on 99 percent of all U.S. manufactured exports to Australia when it takes effect in January 2005 after approval by Australia's parliament.

The FTA was concluded in February 2004 after more than 12 months of negotiations. U.S. Trade Representative Robert Zoellick and Australia's Trade Minister Mark Vaile signed the draft agreement in Washington May 18.

Annual two-way trade in goods and services between the United States and Australia totals $28 billion, with Australia ranked as the 10th largest export market for the United States.

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
20508

USTR Press Releases are available on the USTR website at www.ustr.gov.
FOR IMMEDIATE RELEASE:
August 12, 2004
CONTACT: NEENA MOORJANI
(202) 395-3230

Statement of Richard Mills
USTR Spokesman

Regarding Australian implementing legislation and amendments related to
the FTA

"We understand that the FTA implementing legislation and amendments pose important issues in Australia, just as they did in the United States.

"We have chosen not to intervene in the internal debate within Australia about the FTA implementing legislation and amendments at this point.

"We have stated that it is Australia's obligation to implement the FTA in a manner consistent with both the terms of the FTA and international intellectual property agreements.

"We've made clear that the United States must certify that the implementation language fulfills the obligations under the FTA before the FTA can come into force. We reserve all our rights in this process.

"At no point have we expressed acceptance of the proposed legislation and/or amendments."