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Unfair trade practices hurting Australia: coalition



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MEDIA

ALEXANDER DOWNER — Member fo r Mayo, Shadow Minister fo r Trade & Trade Negotiations COMMONWEALTH PARLIAMENTARY L I B R A R Y MICAH

UNFAIR TRADE PRACTICES HURTING AUSTRALIA: COALITION

The Federal Opposition today released a document from the United States Administration which identified Australia as an unfair trader and said that Australia's retention of unfair international trade practices, including its present tariff levels and other barriers to imports, were causing Australia irreparable damage in international fora.

The Shadow Minister for Trade, Alexander Downer, said that the Prime Minister's recent volte face on tariff reform had damaged Australia's credibility as the leader of the Cairns Group of free trading nations in the Uruguay round of the GATT and had ensured that it would still be perceived as an unfair trader by our trading partners, particularly the US.

Mr Downer said, "Australia's tariff levels for manufacturing have always made us appear hypocrites in calling for other countries to remove their levels of protection and give Australia greater market access.

"The 1992 Annual National Trade Estimate Report on Foreign Trade Barriers (ΝΤΈ) produced by the US Administration and published in Washington yesterday shows the full extent of the unfair trade practices for all the world to see."

Among the points made by the 1992 NTE are the following:

* Australia's tariff profile is characterised by "significant peaks" where "sensitive domestic industries" continue to be protected, such as in the car, textile, clothing and footwear industries where tariffs are as high as 55 per cent;

* At an average of seven per cent, Australia s tariffs on manufactured goods remain higher than the average tariff levels of other industrialised economies, which average less than five per cent;

* Australia has only bound about 25 per cent of its tariffs in the GATT compared with 99 per cent for the US, and the US "intends to pursue reductions in tariff bindings within the context of the Uruguay round negotiations on market access";

* Australia's Customs and Excise Uegislation Law remains inconsistent with the GATT agreement on customs valuation in its treatment of royalties and buying commissions;

* Standards, testing, labelling and certification federal and state regulations are restrictive although Australia became a signatory to the GATT standards code effective at 1 March 1992;

* Australia remains outside the GATT procurement code, although the Government is considering signing the code after the Uruguay round is completed;

After Hours (08) 339 5152 Office No. (08) 391 0888

(06) 277 4720

* Although offsets are no longer required on most new federal civilian contracts Australia continues to evaluate contract bids on offset-like content;

* A number of States maintain 20 per cent domestic preferences for their procurements which places foreign competitors at a significant disadvantage vis-a-vis local contractors;

* Local content requirements for broadcasting remain restrictive and the US is pursuing their elimination in the context of the Uruguay round and in bilateral negotiations;

* The prohibition on investment in new uranium projects is seen as a restriction on investment;

* The 57 per cent local content requirement on tobacco used in cigarette manufacture is a restriction on tobacco-product exports and the US is pursuing elimination of the requirement in the Uruguay round;

* A discriminatory sales tax system which protects Australia's fruit and vegetable juice industry from import competition. Although this sales tax system was due to expire in 1 July 1991, it is still in effect;

As well as these barriers to imports the NTE attacked Australia's export assistance programmes:

* Although Australia is a signatory to the GATT subsidies code and had joined with the US in GATT negotiations to limit the use of export subsidies, Australia continues to utilise two export subsidy schemes, namely the Export Market Development Grants (EMDG) scheme and

the International Trade Enhancement Scheme (ITES), which have been extended to 1995 and 1994 respectively;

* Bounty assistance for a range of products including coated photographic film, books, shipbuilding, bed sheeting, printed fabrics and textile yarns, and machine tools and robots.

Mr Downer said Australia cannot the whole time be berating the rest of the world for its levels of protection while we are ourselves very far from perfection in a number of industries in which we remain uncompetitive and therefore protective.

"Although the Coalition does not agree with the US on every point of complaint, Mr Keating's latest populist outburst only undermines our international credibility."

ends. Canberra, 31 March 1992

FOR FURTHER INFORMATION OR TO ARRANGE AN INTERVIEW CONTACT ALISTAIR NICHOLAS ON (06) 277 4720 OR (06) 285 3798 A H .

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I N V E S T I N , R E S E A R C H AND D E V E L O P M E N T OP. AN

E X P O R T - O R I E N T E D I N D U S T R Y W I T H AN A U S T R A L I A N F I R M .

E X C E P T F O R D E F E N S E P R O C U R E M E N T AND T H E I D A

T E L E C O M M U N I C A T I O N S P R O G R A M , O F F S E T S H A V E NOT B E E N

R E Q U I R E D ON NEW C O N T R A C T S F O R F E D E R A L L E V E L , C I V I L I A N

G O V E R N M E N T P R O C U R E M E N T S I N C E J U N E 3 3 , 1 5 9 1 .

• α ν

A L T H O U G H O F F S E M p A R B . NO L O N G E R F O R M A L L Y R E Q U I R E D ON

M O S T NEW F E D E R S M U l Y I i r A » C O N T R A C T S , B I D S ON S U C H

C O N T R A C T S A R R / S T R i t C O M P A R E D A N D E V A L U A T E D F O R O F F S E T ­

L I K E C O N T E N T , Γ Ν A D D I T I O N T O P R I C E . P U P P A R T I C I P A T I O N

I S A L S O S T I L L R E Q U I R E D F O R C E R T A I N C O M M U N I C A T I O N S AND

I N F O R M A T I O N - B A S E D P R O J E C T S .

S T A T E P R E F E R E N C E S

M O S T A U S T R A L I A N S T A T E S M A I N T A I N 2 0 P E R C E N T D O M E S T I C

P R E F E R E N C E S F O R T H E I R P R O C U R E M E N T S , W H I C H P L A C E F O R E I G N

S U P P L I E R S A T A C O M P E T I T I V E D I S A D V A N T A G E . V I C T O R I A

A B O L I S H E D I T S P R E F E R E N C E M A R G I N ON N O V E M B E R 1 , 1 9 9 0 .

S O M E S T A T E S AND T E R R I T O R I E S A L S O C O N T I N U E T O R E Q U I R E

O F F S E T S , A L T H O U G H T H E F E D E R A L G O V E R N M E N T I S E N C O U R A G I N G

• · · I * Φ * * * M « « * * O f * « Λ I ( A M i ' A r t e 4 n / .1 rt

S U B G O V E R N ^ E M T A L B O D I E S T O F O L L O W I T S L E A D I N L I M I T I N G

S U C H R E Q U I R E M E N T S .

T H E U N I T E D S T A T E S I S S E E K I N G T H E E L I M I N A T I O N OF AL OF

A U S T R A L I A ' S O F F S E T P R O C U R E M E N T R E Q U I R E M E N T S W I T H I N T H E

C O N T E X T O F T H E U R U G U A Y R O U N D N E G O T I A T I O N S . T H E U N I T E D

S T A T E S C O N T I N U E S T O U R G E A U S T R A L I A T O J O I N AND A D H E R E

T O T H E G A T T G O V E R N M E N T P R O C U R E M E N T C O D E .

4 . E X P O R T S U B S I D I E S

E X P O R T I N C E N T I V E S

A U S T R A L I A M A I N T A I N S S E V E R A L P R O G R A M S I N T E N D E D T O

E N H A N C E A U S T R A L I A N E X P O R T S . T H E S E I N C L U D E :

E X P O R T M A R K E T D E V E L O P M E N T G R A N T S S C H E M E ( E M D C ) : T H I S

P R O G R A M A I M S T O E N C O U R A G E A U S T R A L I A N E X P O R T E R S T O S E E K

C UT A N D D E V E L O P O V E R S E A S M A R K E T S F O R G O O D S . S E R V I C E S . I N D U S T R I A L P R O P E R T Y R I G H T S , AND T E C H N O L O G Y

S U B S T A N T I A L L Y O F A U S T R A L I A N O R I G I N . G R A N T S ARE A V A I L A B L E A S R E I M B U R S E M E N T S T O A U S T R A L I A N R E S I D E N T S WHO

H A V E I N C U R R E D E L I G I B L E E X P E N D I T U R E S W H I L E D E V E L O P I N G

O V E R S E A S M A R K E T S F O R A U S T R A L I A N P R O D U C T S OR S E R V I E S .

G R A N T S A R E D E T E R M I N E D ON A M A X I M U M B A S I S OF 5 0 P E R C E N T

O F E L I G I B L E E X P E N D I T U R E S E X C E E D I N G A O O T . S 1 5 . 0 0 3 U P T O A

M A X I M U M R E I M B U R S E M E N T O F A D O L S 2 5 0 , 0 0 3 I N A N Y O N E G R A N T

Y E A R . C L A I M A N T S W I T H E X P O R T E A R N I N G S E X C E E D I N G A D 0 L S 2 5

M I L L I O N . OR WHO H A V E R E C E I V E D E I G H T P R E V I O U S G R A N T S ,

A R E N O T E L I G I B L E . G R A N T S R E C E I V E D A R E T A X A B L E AS

I N C O M E .

I N T E R N A T I O N A L T R A D E E N H A N C E M E N T S C H E M E ( I T E S ) : S U P P O R T

3 / 5 ’ ' UNCLASSIFIED STATE 0 9 7 5 1 3 / 0 3

3 / 5 U N C L A S S I F I E D S T A T E 0 9 7 5 1 3 / 0 3

A V A I L A B L E U N D E R T H E I T E S P R O G R A M I S P R I M A R I L Y D I R E C T E D

T O W A R D T H E M A R K E T E S T A B L I S H M E N T OR S A L E S E X P A N S I O N O F

S P E C I F I E D G O O D S AND S E R V I C E S I N S P E C I F I E D M A R K E T S .

U N D E R T H E S C H E M E P A R T I C I P A N T S MAY R E C E I V E F I N A N C I A L

S U P P O R T U P T O A T O T A L O F A D O L S 7 5 3 , 0 0 0 .

S U P P O R T MAY B E I N T H E F O R M O F C O N C E S S I O N A L L O A N S OR T H E

D I R E C T P R O V I S I O N O F A U S T R A L I A N T R A D E C O M M I S S I O N

( A U S T R A D S ) S E R V I C E S R E L A T I N G T O P R O D U C T D E V E L O P M E N T ,

E X P O R T M A N A G E M E N T , E S T A B L I S H M E N T O F AN O V E R S E A S MARKET P R E S E N C E , M A R K E T R E S E A R C H , AND O T H E R A U S T R A D E " A P P R O V E D

A C T I V I T I E S . A T O T A L O F A D 0 L S 5 5 M I L L I O N H A S B E E N

C O M M I T T E D T O T H I S P R O G R A M , W H I C H H A S B E E N E X T E N D E D

U N T I L M I D - 1 9 9 4 .

A U S T R A L I A HA S S I G N E D T H E G A T T S U B S I D I E S C O D E AND J O I N E D

W I T H T H E U N I T E D S T A T E S I N G A T T N E G O T I A T I O N S T O L I M I T

E X P O R T S U B S I D Y U S E .

4 / 5 ' ’ UNCLASSIFIED STATE 0 9 7 5 1 0 / 0 4

5 . L A C K O F I N T E L L E C T U A L P R O P E R T Y P R O T E C T I O N

T H E C U R R E N T A U S T R A L I A N C O P Y R I G H T LAW F A I L S T O P R O V I D E

T H E R I G H T T O A U T H O R I Z E OR T O P R O V I D E T H E R I G H T T O

A U T H O R I Z E OR P R O H I B I T T H E C O M M E R C I A L R E N T A L O F C O M P U T E R

P R O G R E S S OR S O U N D R E C O R D I N G S . U N A U T H O R I Z E D C O M M E R C I A L

R E N T A L O F S O U N D R E C O R D I N G S T H R E A T E N S U . S . S A L E S O F

T H E S E P R O D U C T S I N T H E A U S T R A L I A N M A R K E T . T H E S E S A L E S

A R E V A L U E D AT D O L S 1 5 0 T O 2 0 0 M I L L I O N A N N U A L L Y ,

A C C O R D I N G T O U . S . I N D U S T R Y E S T I M A T E S . T H E U N I T E D

S T A T E S H A S B E E N P R E S S I N G T H E A U S T R A L I A N G O V E R N M E N T T O

A ME N D T H E I T S C O P Y R I G H T LAW T O P R O V I D E F O R T H E S E

E X C L U S I V E R E N T A L R I G H T S .

E F F E C T I V E D E C E M B E R 2 3 , 1 9 9 1 T H E A U S T R A L I A N C O P Y R I G H T

A M E N D M E N T A C T P E R M I T S , I N C E R T A I N C I R C U M S T A N C E S , T H E

P A R A L L E L I M P O R T O F F O R E I G N B O O K S L E G A L L Y P R I N T E D I N

O T H E R C O U N T R I E S . T H E U . S . P U B L I S H I N G I N D U S T R Y

U N S U C C E S S F U L L Y S O U G H T AN E X E M P T I O N F O R T E X T B O O K S , W H I C H

A R E M A R K E T E D D I F F E R E N T L Y T H A N C O M M E R C I A L T I T L E S . U . S .

P U B L I S H E R S A R E C O N C E R N E D T H A T A L L O W I N G P A R A L L E L I M P O R T S

O F T E X T B O O K S W I L L O P E N T H E M A R K E T T O L O W - Q U A L I T Y

E D I T I O N S OF B O O K S S O L D AT C O N C E S S I O N A R Y P R I C E S T O

D E V E L O P I N G C O U N T R I E S . E X P O R T S O F U . S . - P R O D U C E D

T E X T B O O K S A R I . ^ y j I D AT D O L S 2 0 M I L T I O N A N N U A L L Y

6 . S E R V I C E S b M K z B S

L O C A L C O N T E N T R E Q U I R E M E N T S F O R B R O A D C A S T I N G

P R I O R T O J A N U A R Y 1 , 1 9 9 2 , A U S T R A L I A R E Q U I R E D T H A T N O T

M O R E T H A N 2 0 P E R C E N T O F ANY O N E A D V E R T I S E M E N T C O U L D B E

F O R E I G N P R O D U C E D . U N D E R A NEW R E G U L A T I O N O P T H E

A U S T R A L I A N B R O A D C A S T I N G T R I B U N A L ( A S T ) , AS O F J A N U A R Y

1 , 1 9 9 2 , E X C E P T T O R NEW Z E A L A N D P R O D U C T I O N ' S . NOT MO R E

T H A N 2 0 P E R C E N T O F T H E A D V E R T I S E M E N T S ' S HOWN ON

A U S T R A L I A N T E L E V I S I O N C A N B E P R O D U C E D BY

N O N - A U S T R A L I A N S . T H I S Q U O T A A P P L I E S TO B O T H L I V E -

A C T I O N AND A N I M A T E D C O M M E R C I A L S .

4 / 5 UNCLASSIFIED STATE 5J97bl 0/ ?4

I N J A N U A R Y 1 9 9 0 . A R E G U L A T I O N WAS A D O P T E D W H I C H P H A S E S

I N L O C A L C O N T E N T F O R P R I M E T I M E T E L E V I S I O N B R O A D C A S T S .

BY 1 9 9 3 , 5 0 P E R C E N T OF S U C H B R O A D C A S T S MU S T B E

A U S T R A L I A N AS D E T E R M I N E D BY A C O M P L C A T E D P O I N T S Y S T E M

W H I C H T A K E S I N T O A C C O U N T P R O D U C T I O N C O N T R O L AS WE L L AS

P R O G R A M C O N T E N T .

s o m e S E G M E N T S O F T H E U . S . I N D U S T R Y C L A I M T H E A R T ' S P R E V I O U S L O C A L C O N T E N T R E Q U I R E M E N T S F O R C O M M E R C I A L S C O S T U . S . A D V E R T I S I N G F I R M S AN E S T I M A T E D D 0 L S 7 P M I L L I O N A Y E A R , B A S E D ON 1 5 P E R C E N T O F T H E T O T A L M A R K E T . T H F

I M P A C T O F T H E R E V I S E D R U L E [ S U N C E R T A I N . T H E U . S . M O T I O N P I C T U R E I N D U S T R Y B E L I E V E S T H A T T H E E V E N T U A L 5(? P E R C E N T L O C A L C O N T E N T R E Q U I R E M E N T F O R P R O G R A M M I N G W I L L

S E V E R E L Y R E S T R I C T T H E I R A C C E S S TO T H F A U S T R A L I A N

M A R K E T .

T H E U N I T E D S T A T E S I S P U R S U I N G E L I M I N A T I O N O F T H E S E

R E S T R I C T I O N S I N T H E U R U G U A Y R O U N D S E R V I C E S

N E G O T I A T I O N S . S E V E R A L 3 [ L A T E R A L C O N S U L T A T I O N S H A T E

B E E N H E L D W I T H A U S T R A L I A ON T H I S I S S U E .

7 . I N V E S T M E N T . B A R R I E R S .

L I M I T S ON F O R E I G N I N V E S T M E N T

A L L NEW F O R E I G N D I R E C T I N V E S T M E N T S N T H E M E D I A , C I V I L

A V I A T I O N , AND U R B A N R E A L E S T A T E S E C T O R S A R E S U B J E C T T O F O R E I G N I N V E S T M E N T R E V I E W B O A R D ( F I R 3 ) A P P R O V A L . I N

O T H E R S E C T O R S , NEW F O R E I G N D I R E C T I N V E S T M E N T W O R T H MO R E

T H A N A D O L S 1 0 M I L L I O N I S A L S O S U B J E C T T O F I R B R E V I E W ,

B U T I S G E N E R A L L Y A P P R O V E D A U T O M A T I C A L L Y U N L E S S J U D G E D

4 / 5 U N C L A S S I F I E D S T A T E 0 9 7 5 1 0 / 0 4

U N V L fts a L i it, y i i A i t, c i 5 f w i . o / w y

' C O N T R A R Y T O T H E N A T I O N A L I N T E R E S T .

T H E A G G R E G A T E F O R E I G N O W N E R S H I P T H A T M A Y B E H E L D I N

C O M M E R C I A L R A D I O A N D T E L E V I S I O N S T A T I O N S I S L I M I T E D T O

2 3 P E R C E N T . L E G I S L A T I O N A L S O S T I P U L A T E S T H A T NO M O R E

T H A N 2 3 P E R C E N T O F T H E D I R E C T O R S O F A B R O A D C A S T I N G

L I C E N S E E C O M P A N Y MA Y B E F O R E I G N N A T I O N A L S . D I R E C T A N D

I N D I R E C T O W N E R S H I P B Y I N D I V I D U A L F O R E I G N P R O V I D E R S O F

B R O A D C A S T I N G S E R V I C E S MA Y N O T E X C E E D 1 5 P E R C E N T .

I N S E P T E M B E R 1 9 9 3 T H E A U S T R A L I A N P A R L I A M E N T A U T H O R I Z E D

T H E A U S T R A L I A N G O V E R N M E N T T O P A R T I A L L Y P R I V A T I Z E I T S

T E L E C O M M U N I C A T I O N S A N D A V I A T I O N S E C T O R S . A U S T R A L I A N

S A T E L L I T E ( A U S S A T ) , T H E G O V E R N M E N T - O W N E D

T E L E C O M M U N I C A T I O N S C O M P A N Y . W H I C H H A S B E E N S O L D T O A

C O N S O R T I U M W I T H S I G N I F I C A N T U . S . P A R T T C I Ρ Α Τ Γ O N , W I L L 3 E

A L L O W E D T O C O M P E T E W I T H T H E G O V E R N M E N T - O W N E D

T E L E C O M / O V E R S B A S T E L E C O M M U N I C A T I O N S C O M M I S S I O N I N

A U S T R A L I A ' S T E L E C O M M U N I C A T I O N S S E C T O R . I N T H E A V I A T I O N

S E C T O R . T H E S A L E 0 7 U P T O 1 3 0 P E R C E N T O F A U S T R A L I A N

A I R L I N E S A N D 4 9 P E R C E N T O F Q A N T A S I S E X P E C T E D T O T A K E

P L A C E B E F O R E M I D - 1 9 9 2 . E F F E C T I V E F E B R U A R Y 2 7 , 1 9 9 2 ,

T H E A U S T R A L I A N G O V E R N M E N T A B O L I S H E D T H E 5 0 P E R C E N T

A U S T R A L I A N E Q U I T Y R E Q U I R E M E N T T O R N E W A N D E X I S T I N G

M I N E S . NE W I N V E S T M E N T I N U R A N I U M P R O J E C T S , W H E T H E R B Y

F O R E I G N O R D O M E S T I C I N T E R E S T S , I S P R O H I B I T E D .

U N D E R A U S T R A L I A ' S F O R E I G N T A K E O V E R S A C T , A C Q U I S I T I O N O F

1 5 P E R C E N T O R M O R E O F A N A U S T R A L I A N C O R P O R A T I O N

R E Q U I R E S F I R B A P P R O V A L . T H E F I R B R E V I E W S P R O P O S A L S T O

D E T E R M I N E W H E T H E R T H E Y A C C O R D W I T H T H E N A T I O N A L

I N T E R E S T . H O W E V E R , I N P R A C T I C E T H E G O V E R N M E N T D O E S N O T

I N T E R V E N E I F T O T A L B U S I N E S S A S S E T S O F T P E C O R P O R A T I O N

I N V O L V E D A R E L E S S T H A N A D 0 L S 5 M I L L I O N .

L O C A L C O N T E N T R E Q U I R E M E N T S

A U S T R A L I A M A I N T A I N S L O C A L C O N T E N T I N C E N T I V E S F O R

C I G A R E T T E L E A F P R O D U C E D I N A U S T R A L I A . T O Q U A L I F Y F O R A

R E L A T I V E L Y LOW D U T Y ON I M P O R T E D T O B A C C O , C I G A R E T T E

M A N U F A C T U R E R S H A V E A G R E E D T O U S B A T L E A S T 5 7 P E R C E N T

D O M E S T I C L E A F . T H I S L O C A L C O N T E N T R E Q U I R E M E N T I S

S C H E D U L E D T O Î’ ί ^ Η ι Ι Π Ι Ν A T E D I N 1 9 9 5 .

■

T H E U N I T E D STATES*'-IS P U R S U I N G L I B E R A L I Z A T I O N OF T H I S R E Q U I R E M E N T W I T H I N ' T HE URUGUAY ROUND N E G O T I A T I O N S ON MAR KE T A C C E S S AND T R A D E - R E L A T E D I N V E S T M E N T M E A S U R E S .

8 . O T H E R B A R R I E R S

B O U N T I E S

B O U N T I E S ( P R O D U C T I O N A S S I S T A N C E ) L E T D O M E S T I C

M A N U F A C T U R E R S M A I N T A I N OR I N C R E A S E T H E I R M A R K E T S H A R E

T H R O U G H P R I C E D I S C O U N T I N G . T H E U S E O F B O U N T I E S L I M I T S

F O R E I G N C O M P E T I T I O N AT C O M P E T I T I V E M A R K E T P R I C E S .

5 / 5

B O U N T I E S A R E NO V I N P L A C E ON T H E F O L L O W I N G P R O D U C T S

( S C H E D U L E D E X P I R A T I O N D A T E S A R E I N D I C A T E D I N

P A R E N T H E S E S ) : C O A T E D P H O T O G R A P H I C F I L M ( D E C E M B E R 3 1 ,

1 9 9 2 ) ? B O O K S ( D E C E M B E R 3 1 , 1 9 9 3 ) ; S H I P B U I L D I N G , B E D

S H E E T I N G , P R I N T E D F A B R I C S AND T E 7 T T L E Y A R N S ( J U N E 3 0 ,

1 9 9 5 ) ; C O M P U T E R S ( D E C E M B E R 3 1 , 1 9 9 5 ) 5 A N D M A C H I N E T O O L S

AND R O B O T S ( J U N E 3 0 , 1 9 9 7 ) . E L I G I B I L I T Y T H R E S H O L D S F O R

M O S T B O U N T I E S W E R E E S T A B L I S H E D , I F N O N E - E X I S T E D , OR

R A I S E D E F F E C T I V E J U L Y 1 , 1 9 9 1 .

B O U N T Y A S S I S T A N C E D E C R E A S E D F ROM A D O L S 2 9 4 M I L L I O N I N FY

1 9 9 0 - 9 1 T O A B U D G E T E D A D 0 L S 2 8 3 M I L L I O N I N F Y 1 9 9 1 - 9 2 .

D I S C R I M I N A T O R Y S A L E S T A X E S

A D I S C R I M I N A T O R Y S A L E S T A X P R O T E C T S A U S T R A L I A ' S F R U I T

AND V E G E T A B L E J U I C E I N D U S T R Y F R O M I M P O R T C O M P E T I T I O N .

T H E S A L E S T A X , W H I C H WAS S C H E D U L E D T O E X P I R E I N J U L Y

1 9 9 1 , I S S T I L L I N E F F E C T . B E V E R A G E S C O N T A I N I N G L E S S

T H A N 2 5 P E R C E N T A U S T R A L I A N F R U I T J U I C E A R E S U B J E C T T O A

2 3 P E R C E N T S A L E S T A X . T H E R E I S A 1 3 P E R C E N T T A X F O R

S U C H D R I N K S W I T H 2 5 P E R C E N T OR M O R E L O C A L C O N T E N T .

U . S . I N D U S T R Y C L A I M S A U S T R A L I A ' S D I S C R I M I N A T O R Y T A X

C O S T S U . S . F I R M S A S I G N I F I C A N T A M O U N T O F L O S T S A L E S

E A C H Y E A R . B A K E R

BT # 7 5 1 0

NNNN

5 / 5 U N C L A S S I F I E D S T A T E 0 9 7 5 1 0 / 0 5