The high cost of free trade

"Business with the United States looks one-sided a year after the controversial deal was done, write Mark Metherell and Matt Wade.

Australia: "WHEN the free trade agreement with the United States kicked in a year ago, Bill Rush saw his big chance. His company, Australian Defence Apparel, makes ceramic plates to be worn over bulletproof vests to protect troops against armour-piercing fire.

"The Australian-owned company has beaten German and Israeli competition to supply the British Army and London Metropolitan Police with its plates. The prospect of a $40 million-plus sale to the US Army beckoned.

"But Rush was soon to find that 'free' trade with the US isn't what it seems. While Australia has removed barriers to the US supplying the Australian Defence Force, the US Army used a legislative ban on foreigners supplying clothing or fabric to block purchase of the Australian product ...

"The pact that the Government forecast would give a $6 billion lift to the Australian economy over 10 years has produced a trade reversal for the junior partner.

"Figures for the first 10 months of last year reveal that Australia's exports to the world's economic giant have slipped while US sales to Australia have boomed, widening the trade gap by an estimated $1 billion to top $10 billion."
Sydney Morning Herald

[Well spotted, Baz le Tuff.]

Tagged: globalisation, globalization, free+trade, australia, usa, neo-colonialism