Senator Collins explained the importance of Australia as a trading partner with Maine. "Australia has a strong and vibrant trading relationship with Maine. Australia is Maine's 12th largest export market, and in 2003, Maine exported nearly $29 million in high-value goods, such as electrical equipment, computers and paper products, to the country," she said. "This agreement will make these goods 99.25 percent duty free, on average, in the Australian market."
Senator Collins called the benefits of the Australian Free Trade Agreement to Maine "very positive and very concrete." For example, the following industries would see immediate benefit from the agreement:
· It is estimated that in 2003, the Maine forest and paper products industry exported $17.7 million in products to Australia. This agreement will allow the U.S. paper industry, which is Australia's second largest supplier of paper and paperboard, to expand.
- · International Paper's mill in Jay, Maine exports about 1,200 tons of paper to Australia every year, but these exports currently face a 5 percent tariff. This agreement will eliminate the tariff, allowing the company will to pursue plans to increase the amount of paper it exports to Australia from Maine, and increase the number of jobs supported by the Androscoggin mill.
· FMC Corporation's Rockland plant will be able to significantly expand its export of carrageean products to Australia.
· National Semiconductor and Fairchild Semiconductor in South Portland will benefit from the agreement's elimination of tariffs on all U.S. high-tech manufacturing goods.
· Maine's potato industry will be able to open and expand Australian markets for Maine potato products.
· The agreement will also benefit the manufacturing industry. Ninety-three percent of US exports to Australia are manufactured goods and ninety-nine percent of these goods will be duty-free under the trade agreement.
In her floor speech on the legislation, Senator Collins explained that she does have concerns about provisions in the agreement related to patented products that conflict with her goals of working to provide lower cost drugs to Mainers through reimportation. "One of the greatest challenges facing consumers is the high cost of prescription drugs. That is why I have long supported legislation to allow Americans to benefit from international price competition on prescription drugs by permitting FDA-approved medicines made in FDA facilities to be imported into this country," said Senator Collins.
She explained however, that since the Australian government already bans the export of federally subsidized drugs, which constitute 90 percent of all drugs on their market, that country would never be a significant source for reimported drugs, with or without the trade agreement.
"While Australia is a likely not a good source for imported drugs, this language could become a template for future trade agreements," she said. Senator Collins said that Canada and Western Europe will create far greater opportunities for Americans to access lower cost prescription drugs.
"Australia is one our oldest and most reliable partners. This trade agreement will strengthen the economic and diplomatic ties between our countries. On balance, it is good for Maine and for both countries," added Senator Collins.
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