OH no!!! First the sell out on the Pharmaceutical Benefits Scheme & now this!! Has Labor lost it's nerve? This is so distressing. <sigh>
Labor ready to back free trade deal
By Tim Colebatch
Economics Editor
July 24, 2004
the AGE
Opposition Leader Mark Latham has given his strongest indication yet that Labor will back the free trade agreement with the United States, despite an overwhelming view in the party that it is a bad deal.
Labor frontbenchers are divided over whether the party should pass the agreement in the Senate or send it back for further negotiations after elections later this year in both countries.
But Labor sources say the leadership, including trade spokesman and deputy Senate leader Stephen Conroy, has decided that the party cannot risk being painted as anti-American by opposing the deal.
Mr Latham told a radio interviewer this week that Labor was waiting for the Government to announce the process for reviewing decisions on pharmaceutical benefits before deciding its position.
"It's the last bit of information that we're waiting for, to see that the guarantees are there," he said.
There are also widespread concerns in Labor ranks over the free trade agreement's impact on Australia's IT industry, the viability of film and television production and the potential for large job losses in manufacturing.
In Geelong, Ford workers yesterday demonstrated against the agreement, which analysis for the Victorian Government warns could lead to the closure of Ford's transmission plant in Geelong.
US ambassador Tom Schieffer ruffled Australian car parts manufacturers on Thursday night, pointing out at their annual dinner that the free trade agreement would slash the price of American parts here by 15 per cent, creating new opportunities for Australian manufacturers to source their components from the US.
"That will make the cars that you make here cheaper and more competitive in markets around the world, not just in the United States," he said.
Labor sources say the leadership has decided that the party cannot risk being painted as anti-American.Meanwhile, Trade Minister Mark Vaile will fly to Geneva this weekend in a last-ditch attempt to secure agreement for new rules to open up world trade.
Senior trade officials yesterday warned that there was a real risk that the Swiss talks could, like last year's talks in Mexico, end in failure.
The World Bank has estimated that new rules to open up world trade, especially in agriculture, could lift global output by $US500 billion ($A699 billion) a year. But some Western countries that heavily protect their farmers are resisting reforms, while developing countries and the Australian-led Cairns Group have complained that the draft text of an agreement would allow loopholes to retain massive protection of rice, sugar and beef.
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