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Viewing cable 08CANBERRA554, AUSTRALIA AND CHILE CONCLUDE FTA

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Reference ID Created Released Classification Origin
08CANBERRA554 2008-05-29 07:34 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Canberra
VZCZCXRO5596
RR RUEHPT
DE RUEHBY #0554 1500734
ZNR UUUUU ZZH
R 290734Z MAY 08
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC 9639
INFO RUEHSG/AMEMBASSY SANTIAGO 0302
RUEHKO/AMEMBASSY TOKYO 3068
RUEHBJ/AMEMBASSY BEIJING 9053
RUEHUL/AMEMBASSY SEOUL 9460
RUEHWL/AMEMBASSY WELLINGTON 5336
RUEHBN/AMCONSUL MELBOURNE 5302
RUEHPT/AMCONSUL PERTH 3584
RUEHDN/AMCONSUL SYDNEY 3499
UNCLAS CANBERRA 000554 
 
SENSITIVE 
SIPDIS 
 
STATE PLEASE PASS USTR; STATE FOR EEB, EAP/ANP, WHA 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON AS CI
SUBJECT: AUSTRALIA AND CHILE CONCLUDE FTA 
 
 
1.  (U) Summary: Australia and Chile have concluded 
negotiations for an FTA.  It is expected to be signed in 
July.  This is the first FTA to be concluded by the Rudd 
Government; negotiations began under the previous Howard 
government.  End summary. 
 
2.  (U) On May 27 Trade Minister Simon Crean announced that 
Australia and Chile have concluded negotiations on a free 
trade agreement.  Crean, who has been critical of the former 
Howard Government's policy of favoring bilateral FTAs over 
the multilateral approach, stressed this is a "high-quality 
agreement" covering goods, services, and investment, that 
exceeds Australia's and Chile's WTO commitments.  (In turn, 
the opposition noted that they launched the talks and did a 
significant part of the negotiations on the Chile FTA before 
the Rudd Government won office last November.) 
 
3.  (U) Crean added he would continue to champion strong 
FTAs, and that this deal disproved the opposition's claims 
that the Rudd Government has "taken its eye off the trade 
agenda."  Crean also added a dig against the Howard 
Government for "selling out Australian agriculture to pursue 
an FTA at any cost" - for example, excluding sugar from the 
US-Australia FTA and giving the US an 18-year phase-in for 
improvement in access for imports of Australian beef and 
dairy products. 
 
4.  (U) Chile is Australia's third-largest trade partner in 
Latin America, with two-way trade exceeding US$800 
million/year.  Australian FDI in Chile totals around US$3 
billion, making it the fourth largest foreign investor in 
Chile. 
 
5.  (U) Department of Foreign Affairs and Trade contacts 
expect the agreement will be signed by the end of July, and 
it would enter into force on January 1, 2009.  Post will 
follow up with a more detailed analysis of the FTA. 
 
6. (SBU) Comment:  Crean trade adviser Sophie Ward stressed 
to us Crean's commitment to quality FTAs; it appears the 
Chile one fits the bill.  She also acknowledged that this was 
a relatively easy one, since Chile wanted the FTA and like 
Australia, has already concluded quality FTAs with the United 
States.  FTA talks with Japan and China has been much more 
difficult.  End comment. 
 
MCCALLUM