Mr Brendan O'Connor asked the Minister for Trade, upon notice, on 5 June 2003:

Can he guarantee that local television content rules will not be part of any bilateral trade deal with the United States?

Mr Vaile (Minister for Trade) —The answer to the honourable member's question is as follows:

The Government's statement of objectives for the Free Trade Agreement negotiations with the United Staes, which I announced on 3 March 2003, specifies that we will ensure the negotiations take account of Australia's cultural and social policy objectives, and the need for appropriate regulation and support measures to achieve these objectives in areas such as audiovisual media.

The negotiations will provide us with an opportunity to explain to the US the objectives and basis for our policy interventions in the audiovisual sector. We consider that these interventions are modest and targeted at addressing a range of market failures. They ensure a diversity of Australian product is available to the Australian community to enable a choice in their viewing experience. Importantly, they are not aimed at keeping out imports, and Australia is a substantial net importer of audiovisual services and products.

The US has not yet made any requests for commitments from Australia in relation to the audiovisual sector. However, at the press conference at the second round of negotiations, the US Chief Negotiator, Ralph Ives, indicated that the US would not be seeking to abolish either the TV local content requirements or the subsidies provided to the film and TV industry.

US industry has been quoted in the press as seeking a standstill commitment on Australia's local content requirements,. If the US Administration does seek such a standstill commitment, we will need to assess this carefully in the light of the Government's position that it wants to maintain sufficient flexibility to achieve its cultural and social policy objectives in the audiovisual sector.

The Government is fully aware of the sensitivities of the cultural and entertainment sectors with regard to the negotiations and we have consulted a wide range of stakeholders from those sectors in the lead-up to the commencement of negotiations in March. We are continuing extensive consultations as the negotiations progress.