Holden yesterday welcomed the new free trade agreement between the United States and Australia as a robust outcome for the Australian economy.

Holden Chairman and Managing Director, Denny Mooney, said the agreement would strengthen already significant automotive trade between the US and Australia.

Mr Mooney said the agreement would provide increased opportunities for both countries to import and export vehicles and components.

He said the flow-on effects from stronger economic growth would benefit the entire automotive industry and drive competition in the marketplace.

"This agreement was a sensible outcome for both markets, offering opportunities for Australia and the United States," Mr Mooney said.

"It will foster closer business relations with the United States and provide overall benefit for the Australian economy. From the Australian perspective, we believe it will provide the best possible opportunities for Australian carmakers and component manufacturers seeking to export to the United States.

"It is also a positive outcome from an import perspective because Holden is the industry’s largest importer of engine components and transmissions from the United States.

"It is a great boost for any manufacturer or supplier sourcing components from the US because it will make their products more competitive for Australian buyers."

Department of Foreign Affairs and Trade figures showed the United States was the second largest export destination for Australian automotive products in the 2002-03 financial year, at about $900 million. Only Saudi Arabia takes more Australian exports. The United States was the second largest automotive product importer to Australia in 2002-03, totalling $2.5 billion, behind Japan.

Holden last year exported more than 36,000 vehicles around the world, the company’s second highest year on record. Holden's best result was back in 1973. Last year's figures included the start of 18,000 Pontiac GTO coupe exports to the United States. The GTO is, of course, the marketing name for the American version of the Holden Monaro.

Holden has a long-term objective to achieve 70,000 export sales worldwide. New programmes are being investigated for Asia.

GM's Chief Economist Mustafa Mohatarem, and Dennis Mooney, chairman and managing director of GM Holden, have announced the following joint statement, following the completion of negotiations of the free trade agreement.

"We congratulate trade negotiators from the United States and Australia on the completion of negotiations on the U.S.-Australia Free Trade Agreement. As one of the largest American exporters to Australia as well as one of the largest investors in that country, we see immediate benefits for GM from this agreement. The agreement will encourage a closer trade relationship between the two countries and will create opportunities for more automotive exports into the Australian market."

"We look forward to the Administration's continued work to reduce and eliminate tariff and non-tariff trade barriers across the globe. These efforts play an important role in supporting the international competitiveness of the U.S. auto industry."

Simple, Holden said there should be more trade, each way, between Australia and USA.

Whilst GM said there will be more exports from USA to Australia. But to be fair, the GM statement does not say there would be less imports into USA from Australia.

From this, because there is nothing specific, we must conclude that it's business as usual, until we hear otherwise!

Stephen Walker
Editor