AUSTRALIA: A federal election is likely to be called this weekend as the Australian government clears the decks with the passing of a free trade agreement (FTA) with the US, writes Pádraig Collins in Sydney
With many in the Liberal- National coalition government seeing the FTA as a payoff for Australia's participation in the coalition of the willing in Iraq, it was strongly rumoured last night that the Prime Minister, Mr John Howard, would this weekend call an lElection for September 18th.
The latest opinion poll on behalf of the Rupert Murdoch-owned Australian newspaper indicates that the coalition will be returned to government with a reduced majority.
However, private Australian Labour Party (ALP) polling has indicated that Labour will win but will require the support of independents to govern.
The trade agreement with the US is likely to pass through both houses of parliament today after Mr Howard agreed yesterday to support the ALP's amendments.
Speaking at a press conference, the Prime Minister said he did not want to back the ALP's amendments to the trade deal, but would do so anyway in order to get it passed in the Senate. The coalition controls the lower house but is in the minority in the Senate.
"I want this free trade agreement and, despite my concerns and my reservations, I'm going to accept the ALP amendment," Mr Howard said.
The Prime Minister said US authorities had reserved their right to see if the Labour amendments were consistent with the FTA, once the legislation was passed. "That is an entirely correct American position," Mr Howard said.
The ALP leader, Mr Mark Latham, said the Prime Minister's fears were groundless. "It's a good result for the Australian people, and the Prime Minister should have the decency to face up to the truth of that matter instead of trying to walk both sides of the street," Mr Latham said.
The amendments are concerned with protecting the price of cheap prescription medicines in Australia.
Drug companies face fines of up to 10 million Australian dollars if they are found to be blocking competition from cheap generic medicines.
This blocking often takes the form of a practice known as "evergreening", which involves extending the life of drug patents by lodging spurious patent claims that take years to resolve.
The ALP also insisted on an amendment to protect Australian cultural industries, which the government had previously agreed to.
The Greens party leader, Mr Bob Brown, said Mr Howard's comments about the United States were extraordinary and it should not be up to the US to reject laws passed by the Australian parliament.
"Here we've got the hallmark of this free trade agreement. Phone Washington and see if it's OK. It totally changes democracy in Australia and disempowers this parliament in so many ways," Senator Brown said.
The US has agreements with Canada and Mexico and is a signatory of the Central American Free Trade Agreement.