CANBERRA, Australia – Canada could become involved in free trade talks with Australia if the Australian government loses the election later this year.
Polls are showing that the opposition Labor party could defeat the coalition government of prime minister John Howard.
Howard is pushing hard for bilateral free trade talks with the United States, but Labor says it would broaden the scope to include Canada.
Political analysts expect an in-principle agreement to begin negotiations when Howard meets United States president George W. Bush later this year.
Read Also
Canadian Food Inspection Agency red tape changes a first step: agriculture
Farm groups say they’re happy to see action on Canada’s federal regulatory red tape, but there’s still a lot of streamlining left to be done
Australia and New Zealand have welcomed the introduction of a bill in the U.S. Senate by Democrat Max Baucus to authorize a trade agreement with the two south Pacific countries, as well as South Korea.
Opposition trade spokesperson Peter Cook said Labor would not begin negotiations on a free trade deal until it had a comprehensive understanding of the consequences for Australian industry and agriculture.
He said the U.S. prefers bilateral negotiations.
“It is an approach fashioned for an economic superpower,” he said.
“A one-on-one approach means we have chosen to negotiate in a format of most advantage to the U.S.”
The response was more positive in New Zealand.
Trade negotiations minister Jim Sutton welcomed the Senate decision.
“Although the Baucus bill might not lead to a negotiation any time soon, New Zealand continues to press its case in Washington for a Closer Economic Partnership trade agreement in whatever form is acceptable to the United States.”
