Obama and Gillard are looking to repair their lagging fortunes by this new Free Trade Agreement, however it is fraught with difficulties and on top of this Obama wants it in place before he is going to his election and of course this suits Gillard as it will be within 12 months of her election.Until recently, Australian officials were uncertain about Mr Obama’s level of interest in the TPP, with trade liberalisation politically fraught in the US and the President facing election late next year.
But with his re-election hopes shackled by a sluggish US economy , the President has begun pursuing trade reform as a driver of jobs growth. Mr Obama hailed it as a “milestone” achievement that could dwarf the Euro-zone. It commits Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the US and Vietnam to drop all trade barriers.Ms Gillard said agriculture stood to benefit “a great deal”.
“We have very efficient and productive farmers. And when you talk to them they are very alive to the barriers that prevent them getting full access into other markets,” she said.“If they had full access they would well and truly compete on price and quality.”All sounds good, however, can we compete with the prices from these Nations?
Their pay is lower, their conditions are not in favour of the workers, and their produce is inferior.
Still sounds good, however the trader principle is about trading something, … something of similar value.This is a lovely spin job, the trouble is US and Australia have certain issues that make our produce inequitable with products and produce from many of these countries.This is all about the Obama / Gillard love fest, and trying to save their political scalps.