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TOP US AGRICULTURAL OFFICIALS JOIN TRADE TALKS WITH AUSTRALIA.
CANBERRA, Feb 2 Asia Pulse - The Bush administration's top two agricultural officials were hauled into free trade talks with Australia on Sunday.
Agriculture Secretary Ann Venemann and her influential under-secretary, JB Penn, spent more than two-and-a-half hours locked in talks with Australian Trade Minister Mark Vaile.
But in a sign of the continuing problems both countries are having in surmounting agriculture in the proposed free trade agreement (FTA), neither side said the meeting had led to a breakthrough.
Mr Vaile and his US counterpart, Robert Zoellick, have met daily for several hours since the current round of negotiations got underway in Washington last Monday.
The outstanding issues that were discussed then - Australia's demands for access to heavily protected American farm markets, and America's proposals to reform the Pharmaceutical Benefits Scheme - continue to be the main sticking points.
The biggest obstacle is sugar, with the US refusing to open its heavily protected and politically sensitive sugar market to Australian competition.
The federal government estimates the FTA will boost the Australian economy by A$4 billion (US$3 billion) a year. Sugar makes up more than a quarter of that boost.
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