TEL I97/ 92
STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING, MP'
UNITED STATES EXPORT ENHANCEMENT PROGRAM
Set out below are the texts of an exchange of correspondence
between President Bush and me on the recently announced
expansion of the US Export Enhancement Program.
Letter from President Bush dated 4 September 1992
" I know that you are concerned about the new multi-country
Export Enhancement Program ( EEP) initiative that I just
announced. This initiative, however, does not represent a
fundamental change in the program. We are Continuing to
take into account Australia's interests as a nonsubsidizing
exporter. The initiative was constructed as carefully as
possible to allow room for Australian sales.
" In announcing the multi-country package, I made a point of
emphasizing that it was aimed at countries which subsidize
wheat exports and not at those, such as Australia, which do
not. believe that the EC must be challenged directly on
this unfair trading practice. Our farmers are hurting, as I
suspect yours are too. I agree with you that a successful
conclusion of the Uruguay Round is of critical importance
for advancing global trade liberalization. I remain firmly
committed to reaching agreement on outstanding issues before
the end of the year. my G-7 colleagues agreed on this in
Munich, and I am working hard to ensure we deliver on this
commiitment. " I value highly Australia's close cooperation on the GATT
negotiations. I hope that we can continue to work together,
notwithstanding any differences we may have on the EEP
issue." Sep .92 14 oU4 Nu UUO I-U I 7VZ
TEL 2
Mly response to President Bush dated 8 September 1992
" Thank you for your personal message offering your
perspective on your recent announcement on the Export
Enhancement Program.
" I appreciate your assurance that you remain firmly
committed to reaching agreement on outstanding issues in the
Uruguay Round negotiations before the end of the year. In
this you can count on Australia's continuing close
cooperation. " I was also glad to have your confirmation that you were
continuing to take Australia's interests into account in
constructing this latest EEP initiative.
" Nonetheless, I have to say that the issue of export
subsidies remains a major difference between Australia and
the United States. It will continue to have a corrosive
impact on public support in Australia for the relationship
between our two countries. This is something which should
be of concern to us both.
" After due consideration the Australian Government has
decided that the comprehensive nature of the
Administration's announcement last week leaves us with no
alternative but to take up the whole issue of agricultural
export subsidies under the appropriate procedures of the
GATT Council.
" Given the prime responsibility the European Community bears
for escalating the use of subsidies, my Government will
subject their programs to the same GATT complaint
procedures. " Let me assure you of my direct and personal support for
your wish that our two countries continue to work closely
together to finalise the Uruguay Round, which can alone
provide a long-term and sustainable solution to the problem
of agricultural subsidies. The stakes involved for all of
us in avoiding a trade war are very high. As I explained to
you here in Australia last January, I believe the United
States has a vital leadership role to play in completing
this important task.-
CANBERRA 8 September 1992 3. ; ep., 32 14: U4 t. UZ/ Uz