Downer pushes trade-defence tie-ups with US

By GREG ANSLEY

CANBERRA - Australia has linked its bid for a free trade agreement with the United States to its strong defence alliance, including support for Washington's planned missile defence system.

Foreign Minister Alexander Downer discussed trade and defence with key members of Congress yesterday and will today meet US Trade Representative Robert Zoellick.

Senior trade officials in Wellington have expressed concerns that Canberra would use defence as a lever for a free trade pact that could exclude New Zealand.

In a Washington press conference yesterday, Mr Downer drew direct lines between economic and strategic ties.

"The many American companies that are already in Australia will be supportive of the idea [of a bilateral free trade deal] so I think there will be a business constituency," he said.

"But I also think there will be a political constituency, because I think there will be a lot of people in the US who understand the geopolitical importance of a strong relationship with Australia.

"That includes a strong economic relationship."

Earlier attempts to forge a US-Australia free trade agreement foundered in the early 1990s because of political dissent in Canberra and apathy in Washington.

But it has regained steam through the Howard Government's readiness to seek bilateral and regional trade deals as well as a new World Trade Organisation negotiating round, with qualified support from Labour.