John Howard under whip over US trade deal

By GREG ANSLEY

CANBERRA - Australian Prime Minister John Howard is moving fast to contain fallout from the free trade deal with the United States that could topple him.

The agreement excludes the key sugar industry and has produced limited gains in other important farm sectors, despite earlier assurances.

There is also concern over apparently contradictory interpretations by Canberra and Washington over the future of Australia's subsidised medical drug programme, targeted by American pharmaceutical giants angry at the provision of cheap medications.

The deal, which the Government claims will be worth A$2 billion ($2.2 billion) a year to the Australian economy, is now fighting concerted opposition from Labor, the Democrats and Greens, who between them hold a majority in the Senate.

Although they cannot block the deal in its entirety, it will be subject to parliamentary scrutiny and the possible blocking of legislation needed to allow parts of the agreement to come into force.

The opposition parties will use claimed failings in the agreement against the Government in the campaign for the next federal election, due before the end of the year.

Mr Howard is already battling to keep at bay a revitalised Labor under the leadership of the youthful Mark Latham, who has rapidly gained on the Prime Minister since becoming Opposition leader in December.

Labor, with the other opposition parties, yesterday hammered the Government over the exclusion of the ailing sugar industry, the long lead times for beef and other farm commodities, and uncertainty over the future of cheap drugs under the hugely sensitive pharmaceutical benefits scheme.

Mr Howard also faces trouble within his own camp.

The Coalition Government has already faced desertions from disaffected MPs of the rural-based National Party, and farm groups yesterday expressed their disappointment and anger at the agreement.

National Farmers Federation president Peter Corish said the US farm lobby had won. "This is a trade agreement, not a free trade agreement," he said.

The Government's country vote could be split by a rise of conservative independent candidates. Canegrower groups have already discussed the possibility of either running their own candidates or supporting independents. This could put at risk as many as five Coalition seats in Queensland.

The loss of just eight seats across Australia would send the Government from office, and Mr Howard yesterday moved to limit damage by promising a new aid package for canegrowers.