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Ashok Dasgupta

SYDNEY, Nov. 15

IN what is being viewed in certain quarters as a sort of a setback to the cause of developing countries, the US Trade Representative, Mr Robert B. Zoellick, has announced that he has formally notified Congressional leaders of the US objectives and goals for negotiations for a free trade agreement (FTA) with Australia.

Mr Zoellick made the announcement after a meeting with the Australian Prime Minister, Mr John Howard, and the Trade Minister, Mr Mark Vaile, in Canberra. The negotiations are to begin in 90 days from November 14.

"We believe the US has much to gain in pursuing a negotiation with Australia. The increased access to Australia's market that an FTA would provide would further boost trade in both goods and services, enhancing employment opportunities in both countries," Mr Zoellick wrote in a letter to Congressional leaders.

"We plan to use our negotiation with Australia to strengthen these commercial ties and address barriers that US exports face today," he said.

On Wednesday, the US President, Mr George Bush, had provided Mr Zoellick with the statutory authority to notify Congress of the US Administration's intent to enter into negotiations with Australia.

Australia, in turn, has hailed the move as a major breakthrough. The Australian Trade Minister, Mr Mark Vaile, noted: "The decision to move ahead with negotiations vindicates the Government's determination to pursue this initiative over the last two years..." Although the WTO does not bar member countries from entering into bilateral negotiations, some of the developing countries participating in the Mini Ministerial here have viewed the development as a setback to their interests.

This, they said, was especially so as Australia was till now taking the lead in spearheading the cause of the developing countries in WTO matters relating to market access in agriculture and the like.

By weaning away the strong partners among the developing countries, the rich nations were driving the other developing nations to a corner, which was not good for healthy negotiations, they felt. The only way to counter such moves, they felt, was for the developing nations to get together into blocks or enter into similar FTA agreements.

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