Australian Foreign Minister Slams U.S. Steel Tariffs
Downer, in an address to the greater Dallas Chamber of Commerce, said the steel tariffs and agricultural subsidies ruffle feathers internationally and raise prices for U.S. consumers.
"I don't think steel tariffs are going to be a good way to keep costs down. If you put up your tariffs on steel, that makes steel products more expensive. In the end, that will have a net negative effect on the United States economy," he said.
U.S. President George W. Bush in March invoked a U.S. trade law that raised import duties on certain steel products up to 30 percent. Bush exempted some foreign steel products from the tariffs as part of his initial decision, which primarily benefited producers in Australia and South Korea.
In a move aimed at ensuring adequate domestic steel supplies and easing trade tensions, the U.S. Commerce Department in June exempted close to 136,000 metric tons of foreign steel from the hefty tariffs that Bush imposed in March.
The Australian foreign minister said U.S. agricultural subsidies that help American farmers end up hurting his country's agricultural sector, as well as U.S. consumers.
"That disadvantages us. We are not happy about it, but also, it costs you. It is not a good way to treat consumers, and of course, it has macroeconomic consequences," he said.
Australia and other trading partners have criticized the United States for farm legislation that will give $190 billion in subsidies to American producers over the next 10 years, Reuters reported.
Downer said he is pushing for swift implementation of a free trade pact between Australia and the United States.
Downer met with Secretary of State Colin Powell on Thursday in Washington. After that meeting, Downer urged the U.S. Congress to give the Bush Administration a mandate to negotiate on trade so that Australia and the United States can start serious talks on a free trade agreement.
Australia has been pressing for a trade agreement with Washington for several years.