A tariff-busting free trade agreement (FTA) between Australia and the US overcame its final hurdle yesterday when the opposition Labor Party agreed to vote with Prime Minister John Howard's conservatives and pass enabling legislation in the upper house of parliament.
The draft of the FTA was signed in Washington in February by Trade Minister Mark Vaile and his US counterpart Robert Zoellick after more than 12 months of negotiations. It awaits the signature of President George W. Bush, having already passed the US Senate.
Under pressure from its union backers to block the deal, the Labor Party has struggled for five months to come up with a face-saving formula to vote with the government on a bill that has the backing of all the state leaders.
"The government has attempted to harass the parliament and the Australian people into accepting an agreement that has enormous implications for our national interest," Labor senators said in a statement. "It seems there will be overall economic benefit, but Australia's national interest must always be considered in more than just economic terms."
In finally offering its support for the FTA, Labor sought to placate unions by proposing an independent inquiry into how the agreement would affect Australia's manufacturing industry.
The trade agreement provides for 99 percent of US-made goods entering Australia to be duty-free when the deal takes effect in January and the same for Australian goods going to the US.
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