U.S. calls in top trade officials
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U.S. Trade Representative Robert Zoellick has been forced to extend trade talks with his Australian counterpart, Mark Vaile.
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CANBERRA, Australia (Reuters) -- The United States has called its two top agricultural officials into free trade talks with Australia in a bid to break an impasse in negotiations, officials say.
Australia and the United States had hoped to reach a free trade deal by the end of January after over-running a deadline to seal a pact by the end of 2003.
But they have struggled to agree on a range of issues, particularly agriculture.
Australian Trade Minister Mark Vaile and U.S. Trade Representative Robert Zoellick extended negotiations over the weekend in a last-ditch bid to strike a deal.
Zoellick called the Secretary of the U.S. Department of Agriculture, Ann Vennemann, and the department's Under-Secretary, J.B. Penn, into the talks over the weekend to try to end the deadlock.
"There was a full scoping of all issues in agriculture in an effort to narrow the differences," said a spokesman for Vaile.
No further details were available on the progress in talks or outstanding obstacles.
Australia and its second-largest trading partner, the United States, are trying to strike a deal in time to put it to the U.S. Congress for approval before November's presidential elections.
Free trade negotiations between Canberra and Washington began last March and were made a top priority of President George W. Bush's administration following Australia's backing of the U.S.-led invasion of Iraq.
Australian analysts believe a free trade pact could boost the Australian domestic economy by Aust $4 billion (about $3 billion) a year.
Two-way trade is now worth A$28 billion ($20 billion) a year.
The two sides have clashed over agriculture, and Washington's demand for Australia to water down its rules over local content on television and in film.
The U.S. is also continuing to push for changes to Australia's state-subsidized drug scheme but some Australians fear this would force up the price of pharmaceuticals.
Australia wants access to heavily protected U.S. farm markets such as sugar, beef, and dairy but American farmers are resisting opening up their markets to their Australian rivals.
Sugar could make or break any deal as opening the U.S. sugar market would be worth over A$600 million to Australia, making it the single most important part of the deal for Australia.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
