Bush wants Australian free-trade deal by end of year

11.45am

SYDNEY - President Bush said on Sunday he wanted to reach a free-trade agreement with Australia by the end of the year and would push to resolve differences that include how fast US farm tariffs should fall.

"I told John (Howard, Australia's prime minister) that we'd like to get a free trade agreement done by the end of this year and it's a good opportunity to say that again," Bush said in an interview on Australian television.

"He and I will sit down and negotiate the fine points. At our level we can encourage the negotiators to move along and resolve our differences," Bush said on Channel Nine's "Sunday" program.

Australia wants US tariffs in agriculture cut heavily and removed within five to 10 years. The United States has proposed a slower pace to address US farm lobbies' concerns, particularly over protected dairy and sugar industries. Australia says an agreement could boost exports of US manufactured goods.

If the talks continue into next year, the process will hit political obstacles because of the 2004 US presidential elections. The deal must be available to Congress to consider for 90 days, and then must be voted on within two months.

Bush is due to arrive in Australia this week on his first visit to the country, which was one of the United States' strongest allies in the Iraq war.

In a separate interview aired on Sunday, Australian Trade Minister Mark Vaile said he had received positive indications that a deal could be struck.

"There is very real commitment from the Bush administration to negotiate this deal with Australia. We both recognised from the outset how very difficult and challenging that was going to be," Vaile said on the Australian Broadcasting Corporation's "Insiders."

- REUTERS