The United States has proposed a new set of tariffs on 60 trading partners, including Australia, alleging they have failed to impose and enforce forced labour bans in their supply chains. The Australian government has rejected the accusations and says the proposed 12.5 per cent import tax contravenes the free trade agreement.
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TRANSCRIPT:
In the latest announcement by the Trump administration, tariffs have been proposed of up to 12.5 per cent on imports from 60 trading partners, including Australia.
United States trade-representative Jamieson Greer says those trading partners have engaged in unfair trading practices.
In a report published on Tuesday night, Greer said that the acts, policies and practices of Australia related to the failure to impose and effectively enforce a forced-labour import prohibition are unreasonable and burden or restrict US commerce.
“When you think about the tariffs that we had in place last year, these tariffs were in place due to an enormous trade deficit, the enormous trade deficit we have with the world, and some were particularly severe for certain jurisdictions: China, the European Union, Japan, etc. Driving all of these deficits, we believe, among other things, are unfair trading practices. One of these is a tolerance for the import and export of goods made with forced labour. So this is the action where we proposed tariffs last night.”
Other countries impacted by the decision include U-S allies such as Canada, Japan, the European Union and Israel.
U-S adversaries such as Russia and China are also covered in the ruling.
Australian politicians from across the aisle have rejected the assertions by Greer, with Treasurer Jim Chalmers calling the new levies unjustified.
"Well, we maintain the position that these tariffs are unwarranted, they're unjustified, and they're inconsistent with our free trade agreement with the US, and we've made that case repeatedly. Now, when it comes to the specifics of the modern slavery laws, we've got a world leading legislation in place already to combat the the evils of modern slavery. This is the issue that the trade representative has raised, so we will continue to take every opportunity that we can to stand up for Australian exporters and to stand up for the workers and businesses in those industries."
Under the proposed tariffs, a 10 per cent temporary tariff imposed in February would increase to 12.5 per cent from July 24.
According to AAP, beef and gold exports from Australia to the U-S will maintain their existing exemptions from US tariffs.
Prime Minister Anthony Albanese says the latest tariffs have been caused by an "ideological disagreement".
He has told ABC AM Radio that these measures will only push up prices for consumers in the United States.
"There is an ideological disagreement where the United States administration has broken with what was decades long understanding that tariffs are not positive for the country that is imposing them, that they increase the costs of goods and services in the country that is country, that is applying them to its consumers, and that free trade is in the interests of the global economy, it's in the interests of Australia, it's also in the interests of the United States."
Opposition leader Angus Taylor has vowed to fight against the decision.
He says this is not how friends behave.
"They're wrong, that they shouldn't be tariffs like these imposed on Australia, and the United States shouldn't do it. They're a great friend, and they shouldn't do it to a friend. We fought with them in every war, every major war."
Nationals Leader and opposition trade spokesperson Matt Canavan says he will also work with the government to fight these measures.
"Now I've read the report overnight, and there is no evidential basis here in this report for to maintain that somehow Australia does not have strict regulations and standards on forced labour. This report has just two paragraphs on Australia, and it's more assertion than evidence, as Angus has said, these are wrong, these tariffs are unjustified, they're unwarranted, and they're not the act of a friendly country. They've been brought forward on trumped-up reasons here that don't hold water, so all Australian politicians and leaders should be fighting against this. We'll certainly be doing that. We'll support whatever the government needs to stand up for Australian exports and our country."
