AAP NEWSFEED January 30, 2002, Wednesday BYLINE: By Shane Wright
DATELINE: CANBERRA, Jan 30
BODY: Trade Minister Mark Vaile today told American political leaders Australia feared the likely impact of a plan to hand US farmers $340 billion in subsidies.
Mr Vaile, on a week-long visit to the US, told Agriculture Secretary Ann Veneman and influential members of Congress that Australia would not stand by idly if the proposed Farm Bill was passed in its current state.
The bill, now before the Senate, would guarantee American farmers a range of subsidies that threaten to increase US production and force down world prices over a range of commodities. Australia is concerned about the impact it will have on local farmers, as well as its flow-on impact on world trade talks.
While the focus of most US politicians was on President George W Bush's first State of the Union address, Mr Vaile spent most of the day in talks with congressional and administration leaders.
The talks with Secretary Veneman were dominated by Australia's concerns over the Farm Bill.
"I took the opportunity to express Australia's concerns over the proposed Farm Bill and it's likely impact on international markets," he told AAP.
Mr Vaile said Mr Bush's address contained good news for Australia, with the President focused in part on winning trade promotion authority (TPA) from the Congress.
TPA would give Mr Bush the right to negotiate trade deals, such as a possible free trade agreement between the US and Australia, without going back to the Congress.
Part of Mr Vaile's visit includes talks on the free trade agreement.
"Mr Bush looked strongly towards the Senate to support TPA, and that is a positive development for Australia," Mr Vaile said.
There is already some support within the Senate for a free trade agreement with Australia, but there is strong opposition from American farming organisations.
Mr Vaile tomorrow will meet with US Trade Representative Bob Zoellick during which the Farm Bill issue will be raised.
Mr Vaile will also express Australia's concerns about proposed US tariffs of up to 40 per cent on steel imports.
Australia exports about $450 million worth of steel a year to west coast steel millers.
Australia has threatened to take the US to the World Trade Organisation if it goes ahead with the tariffs which follow concerns about low-cost European steel imports.
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