Sales by affiliates of US firms in Australia are significant, and have grown rapidly over the past several years. They totaled $14.7 billion in 2001, up from $11.3 billion in 1998, and $5.5 billion in 1994. These sales generate a return flow of profits and other payments to us parent companies.
The US-Australia Free Trade agreement opens up new market opportunities for US service providers in a variety of industries
Financial services: Australia will extend national treatment and most favored nation (MFN) with respect to provision of services to its civil service pension system. The agreement will permit the cross-border provision of portfolio management services by US asset management firms to Australian mutual funds, an important commitment that allows US firms to achieve economies of scale and leverage their global expertise. The Agreement also contains excellent regulatory transparency provisions for financial services.
Insurance: All major aspects of insurance are covered in the Agreement, including life, non-life, reinsurance, intermediation and services auxiliary to insurance. In addition, key cross border insurance products and services are covered. Australia also committed to life insurance branching, which was previously not permitted, and made commitments on expedited product approval, both important commitments for US insurance providers.
Audio visual: The Agreement significantly advances the US film industry’s interests in ensuring continued access to this very important market – the eighth largest export market for the US film industry. The Agreement provides a balance between respect for Australia’s cultural concerns and US industry’s need for predictable market access.
Express delivery services: The Agreement recognizes express delivery services (EDS) as a unique service sector and contains important commitments to maintain market access for the EDS industry. The Agreement also contains important provisions to facilitate customs clearance, which is critical to the efficient operation of express carriers.
Computer and related services: The Agreement ensures full market access and national treatment for computer and related services. Between the services and investment provisions of the agreement, all modes of delivery are covered in the agreement. In addition, the negative list approach also ensures that rapidly evolving computer services will be covered by commitments contained in the Agreement.
Telecommunications: The Agreement includes several important “WTO-plus” obligations for major suppliers, including resale, provisioning of leased circuits and co-location. The agreement also meets a key industry goal by fostering the independence of regulatory bodies, and prevents anti-competitive conduct.
Other services: Under the Agreement, Australia has also made commitments that apply across a range of other sectors, including distribution, energy services, construction and engineering services, tourism, advertising services, professional services, environmental services, and education and training services.
Electronic commerce: Digital products will receive non-discriminatory treatment and will not be subject to customs duties. Commitments will facilitate the ability of businesses to use electronic means to authenticate a business transaction (e.g., digital signatures). US and Australia will also cooperate on other ecommerce issues, including work toward mutual recognition of digital certificates used for electronic transactions with each government.
# # # # #
CSI is the leading business organization dedicated to reducing barriers to U.S. services exports and mobilizing support for domestic U.S. policies, including tax policies, which enhance the global competitiveness of its members. CSI was formed in 1982 to ensure that U.S. trade in services would become a central goal of U.S. trade policy and trade negotiations. It played a major role in the General Agreement on Trade in Services (GATS) and in the advocacy effort leading to the 1997 World Trade Organization (WTO) Basic Telecommunications and Financial Services Agreements. CSI’s knowledge of the process of services trade negotiations, its ties to the WTO and its network of relationships with governments and industry in other countries are unmatched. For a complete list of CSI members, visit our website at www.uscsi.org.
