Australia should leave security out of the argument about trade with the US. The security relationship with the US must stand or fall on its own merit. Australia has much to gain from being part of the US security umbrella and from sharing intelligence with US forces. Waving the security card will not help.
It means, therefore, that we must argue the trade card with greater force.
The US has imposed the tariff because, it argues, cheap foreign steel is being dumped on the US market from countries that subsidise steel production. That is not true of the Australia steel industry which is one of the most efficient in the world. The Australian industry has reformed and restructured and can now land steel on the west coast of the US for $40 a tonne less than east-coast US manufacturers. That point should be argued. Australia should have been exempted from the tariff. The US should be asked to either identify what subsidies Australian steel gets, or exempt Australian steel. The US says that its tariff is allowed under World Trade Organisation rules. Once again that point should be argued in WTO forums. Australian should seek whatever penalties the WTO can impose. Further, Australia needs to point out more forcefully the US hypocrisy in this decision. President Bush frequently appeals to the world to open up markets and to apply free trade. But as soon as his home market gets the whiff of some competition, he retreats to protectionism.
Continue reading “2002_03_march_leader07mar steel”