WASHINGTON (AP) — Australian Prime Minister John Howard told Congress on Wednesday that a recently approved U.S. farm bill that provides higher subsidies to some American growers will damage Australian farms.
“As a true friend, let me say candidly that Australia was intensely disappointed with the passage of the recent farm bill,” Howard said in an otherwise upbeat account of U.S.-Australian relations.
The word “intensely” was not included in Howard’s prepared remarks to a joint meeting of Congress.
The European Union and Canada have joined Australia and other countries in criticizing the farm bill, which President George W. Bush signed a month ago, saying that it provided a safety net for American farmers. The bill is estimated to cost $190 billion over 10 years.
Australian officials have been studying the legislation to determine whether it is illegal under international rules.
They have expressed concern that some of the new subsidies were linked to production, a practice which artificially inflates the quantity produced, leading to an artificial fall in prices.
Bush has said the legislation will neither lead to overproduction nor to depressed prices.
Howard said farm subsidies of the European Union and the United States serve to illustrate the urgent need for global reform of agriculture within the World Trade Organization framework.
Australia is a member of an 18-nation group of agricultural exporters that do not use production or export subsidies.
Howard, who meets with Bush on Friday, said the United States and Australia could regain momentum in bilateral relations by opening negotiations leading to a free trade agreement.
Boosting trade and investment though such an agreement “would add a stronger economic dimension to the very deep bilateral ties that are already there,” he said.
For the most part, Howard’s speech to the gathering in the House chamber was well received. At the outset, he said, “America has no better friend anywhere in the world than Australia.”
Howard’s biggest applause line came when he recalled that he invoked the U.S.-Australian mutual defense treaty, which dates from 1951, after the Sept. 11 terrorist attack.
“America was under attack; Australia was immediately there to help,” he said.
On Tuesday, Howard met with Secretary of State Colin Powell, who thanked him for the support Australia has provided to the U.S.-led anti-terror campaign in Afghanistan. Howard also has met with key members of Congress.
