The first of January 2005 marked a new beginning for the country of the USA and Australia in their quest towards prosperity, economic integration, and a strong partnership. As heralded by the Australian government of the time, “once in a lifetime deal” that tied them to the world’s biggest economy and the most powerful country. Thus, it came into force the Australia-US Free Trade Agreement (AUSFTA) as a bilateral trading partnership between the two countries.
The Trade Agreement that was proposed by the USA to Australia as long back as in 1945, but not until the strong tie between George W Bush and John Howard, that the proposal finally started moulding into shape. With President Bush giving a green signal for the Free Trade Agreement to be taken forward in 2001, the Centre for International Economics (CIE) was deputed by the Australian Department of Foreign Affairs and Trade (DFAT) in 2004 to make an analysis of the Economic Impact of the AUSFTA on the Australian Trade Front. CIE concluded in the prospects of large economic gains of the country. Thus the two governments celebrated the initiation of a ‘win-win’ trade agreement which would go beyond economic impacts and would result in a strong partnership between the two countries in the next round of WTO DOHA multilateral trade negotiations and result in a successful relationship with their counterparts in the Asia Pacific region.
Table of Contents
1. Introduction
2. Literature Review
3. Trade Deals
4. The Objectives of the AUSFTA
5. Lobbying by different interest groups
6. Analysis of the causes and consequences
7. US-Australia Free Trade Agreement- WHO WON?
8. Conclusion
Research Objectives and Key Topics
The primary objective of this research is to critically evaluate the role and effectiveness of diplomatic lobbying in the negotiation and legislative passage of the Australia-US Free Trade Agreement (AUSFTA), assessing whether the agreement was fundamentally an economic tool or a byproduct of political and strategic motives.
- The influence of diplomatic lobbying on trade policy and decision-making processes.
- Evaluation of the "special relationship" between Australia and the USA in the context of the Iraq/Afghanistan war backdrop.
- Analysis of opposing and supporting interest groups, including sugar, beef, and pharmaceutical sectors.
- Economic impact assessment of the AUSFTA regarding trade diversion and national economic interest.
- Critique of the neoliberal ideology vs. political maneuvering in bilateral trade agreements.
Excerpt from the Book
The Objectives of the AUSFTA
There is an overwhelming number of studies on the economic impact of the AUSFTA. To understand the consequences, we need to understand the objectives of laying out this AUSFTA clearly. The stated objectives by the then Australian trade minister, Mark Vaile were; attracting more investments in Australia from America, deeper integration of the two countries in the economic front, encouraging a ‘competitive liberalisation’ strategy through exemplary demonstration in the WTO and taking a robust bilateral stance to enhance the relationship in the East Asia and Pacific Region (Stroler, 2004). However, these seem to be proclaimed objectives that might have been a good sideshow but not the real players. A closer study of the diplomatic statements of the time and their intents seems to draw a different picture. Quoting the then Trade Minister of USA, Bob Zoellick, the FTA would go a long way to “strengthen the Foundation of our Security Alliance” (Head, 2003). A report from Monash on the Australian side also stated that military alliance with the USA was far more crucial and central to Australia’s foreign policy, much far and beyond the economic consequences of any trade deal. The deal preceded by a list of demands from both sides, of which the balance seems to be tilted to a great extent towards the US demands. The demands included removal of export marketing boards of Australia, getting rid of health and quarantine standard regulations of Australia, retention of US farm subsidies, export credit programs, diluting the Australian Pharmaceutical Benefits Scheme. The American Australian FTA coalition (AAFTAC), which consisted of the big American business houses like General Motors and Ford backed most of these demands. (Head, 2003).
Summary of Chapters
Introduction: Provides the historical context of the AUSFTA, highlighting the diplomatic and economic shift towards a bilateral partnership between the USA and Australia.
Literature Review: Discusses the conflicting scholarly views on the agreement, contrasting projections of economic gain with criticisms regarding the sacrifice of national autonomy.
Trade Deals: Examines the theoretical foundations of modern trade policy and the shift from multilateralism to competitive bilateralism.
The Objectives of the AUSFTA: Analyzes the stated economic goals versus the underlying strategic and military imperatives that drove the agreement.
Lobbying by different interest groups: Identifies the various stakeholder groups and the role of domestic and foreign lobbying in influencing the trade policy outcome.
Analysis of the causes and consequences: Investigates the politico-economic climate of the Howard government and the specific impacts the agreement had on key industries.
US-Australia Free Trade Agreement- WHO WON?: Discusses the asymmetrical nature of the deal and evaluates the balance of power between the two signatory nations.
Conclusion: Summarizes the findings, asserting that the AUSFTA was predominantly a result of political maneuvering rather than purely economic justification.
Keywords
AUSFTA, Diplomatic Lobbying, Bilateral Trade, US-Australia Relations, John Howard, George W. Bush, Trade Liberalization, Economic Policy, Pharmaceutical Benefits Scheme, Interest Groups, Foreign Policy, Political Economy, Neoliberalism, Trade Diversion.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines how diplomatic lobbying and political motives, rather than just market-driven economic factors, influenced the negotiation and ultimate passage of the Australia-US Free Trade Agreement (AUSFTA).
What are the primary thematic areas covered in the analysis?
The research covers international relations, political economy, the role of interest groups, bilateral trade strategies, and the specific impact of the AUSFTA on Australian and American sectors.
What is the ultimate research question posed by the author?
The paper asks whether the AUSFTA was genuinely a "once in a lifetime" economic opportunity for Australia or if it was primarily a political trade-off for strategic military and diplomatic alignment with the United States.
Which research methodology is employed?
The study utilizes a qualitative research methodology, synthesizing primary and secondary literature to evaluate the politico-social context and the influence of lobby groups on government trade policy.
What does the main body of the work address?
The main body addresses the objectives of the agreement, the conflicting arguments in the literature, the specific impact on Australian industries like medicine and agriculture, and a detailed analysis of how interest groups lobbied for or against the deal.
Which keywords best characterize this work?
Key terms include AUSFTA, Diplomatic Lobbying, Bilateral Trade, Australian National Interest, and Political Economy.
How did the military alliance affect the trade agreement?
The research suggests that the Australian government's need to show solidarity with the US due to the "war on terror"—specifically the invasions of Afghanistan and Iraq—made the signing of the AUSFTA an imperative for political and strategic legitimacy, often overriding economic concerns.
What role did the Congressional Liaison Office (CLO) play?
The CLO is noted as a significant player in representing Australia's interests in the US Congress, and the paper analyzes whether the credit given to this firm for securing the deal is justified or if external global factors were more decisive.
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- Dr. John Chuol Muon (Ph.D.) (Autor:in), 2018, How Diplomatic Lobbying Affected the US-Australia Free Trade Agreement Negotiations, München, GRIN Verlag, https://www.grin.com/document/1239220
