· The free trade agreement is sensitive to concerns expressed by some members of Congress and some U.S. agricultural sectors, and the agreement uses tariff quotas to address these concerns. Section 10 of the Free Trade Agreement gives clear meaning to the term “cross-border trade in services” and provides suppliers with an open environment for business. It requires each country to insert national or treatment by the most advantaged countries to the other`s service providers and prohibits numerous restrictions on market access and transfers. The Agriculture section of the agreement describes the system of removing most tariffs on agricultural products traded between the two countries. It also agrees to eliminate export subsidies if the quantity of goods in question is exported to one of the two countries of the party. This chapter defines the framework of the free trade agreement. It states that the provisions are in line with the relevant sections of the 1994 General Agreement on Tariffs and Trade (GATT) and the General Agreement on Trade in Services (GATS). Both GATT and GATS are documents created by World Trade Organization (WTO) agreements that set limits on future bilateral agreements such as the United States of Australia. Free trade agreement.
Chapter 4 deals with the trade in textiles and clothing between the two countries. Most of this section includes rules of origin for textile products and protection of the internal markets of both countries. The agreement provides for an emergency mechanism if the sudden increase in imports due to the reduction in tariffs has negative effects on the domestic industry of the importing country. o The USDA Animal and Plant Health Inspection Service and Biosecurity Australia will hold a permanent technical working group, including the representation of trade agencies, to engage as early as possible in each country`s regulatory process to cooperate in the development of science-based trade measures between the two countries. · Requires transparent procedures for registering trademarks, including geographical indications. · More than 99% of U.S. exports of industrial products to Australia will be duty-free as soon as the agreement comes into force. Manufactured goods currently account for 93% of total U.S. goods exports to Australia. The objective of the “Safeguard measures” section of the agreement is to define an agreed structure for the protection of serious negative effects on each country`s domestic industries during the transition period following the abolition of tariffs.
Countries also agree to consider excluding the application of WTO safeguards on a global scale with respect to imports from the other country where such imports are not the source of the harm to domestic industry. · The emphasis is on promoting compliance through consultations, joint action plans and trade-enhancing remedies.