Australia - U.S. Free Trade Deal Under Threat(US Drug Co veto rejected)

[papau]

http://www.nytimes.com/reuters/politics/politics-trade-australia-usa.html

Australia - U.S. Free Trade Deal Under Threat
By REUTERS

CANBERRA (Reuters) - Australia's free trade pact with the United States was under threat Tuesday with the government and opposition Labor at loggerheads over legislation backing the deal ahead of a cliff-hanger election tipped for October.

Legislation to enact the agreement in Australia has been passed in parliament's lower house but faces a tougher passage through the upper house Senate, where the government is in a minority and needs four more votes.

Center-left Labor leader Mark Latham said Tuesday his party supported the free trade deal but would not pass the enabling legislation that went with it unless the conservative government accepted two amendments proposed by Labor (to protect the Pharmaceutical Benefits Scheme, a state-subsidized program reducing the prices of some drugs, and to allay concern that local content would disappear from Australian television and radio).

"Despite several flaws in the agreement, it has net economic benefits for Australia, and on this basis, should be supported," Latham told reporters.<snip>