Free trade deal and local shareholders (letter)by Robert BomNews Weekly
, June 28, 2003
Shareholders of Australian companies have much to lose in a "Free Trade" deal with the United States. The average profit made by Australian companies and distributed to shareholders is approximately four and a quarter percent. Most of that is also tax paid. American companies on average manage only one and a quarter percent with tax still to be paid by shareholders on the income.
A negotiated trade deal will give the powerful American companies a free bite at Australia's healthier profit margins.Historically, free trade deals have existed since colonial times to assist rich countries in plundering the resources of smaller nations.
It is important that we keep our friendship with the US, particularly in the area of defence and security, but in a "Free Trade" deal, all we will get from the Americans will be coloured beads and mirrors.Robert Bom,