THE POLITICAL ECONOMY OF AUSTRALIA'S TRADE POLICY-MAKING TOWARDS THE UNITED STATES

The purpose of this study is to explain how Australia has bargained for improved outcomes in its trade with the United States over the 1980s and into the early 1990s. This explanation is sought by means of an analysis of the forces which have shaped Australia's trade policy-making towards the U.S. in the five trading sectors of wheat, sugar, beef, steel and international air passenger transport. The study adopts a theoretical framework which postulates that state actors and institutions are principally responsible for trade policy-making and the concomitant bargaining strategies adopted to improve trade outcomes. However, a state-centred approach needs to be qualified by state actors' accomodation of societal-actor demands for policy action. While exogenous to this domestic bargaining process, influences emanating from the international political economy must also be taken into account. The relationship within and between state and societal actors, influenced as they are by international institutions and ideas, are critical to understanding the bargaining approaches made by one state towards another. It is argued that sectoral trading outcomes between Australia and the U.S. can be understood by reference to a bilateral bargaining process within each trading sector. Within each such bargaining process, Australia has, within broad bilateral and multilateral approaches, devised strategies by which it could mobilize sectorally-specific resources to seek to exploit opportunities and minimise problems so as to improve its trading outcomes. The nature of these sectoral strategies has been influenced by first, the nature of the U.S. policy and policy-making process; second, the Australian domestic bargaining process between state and societal actors; and third, and to a lesser extent, prevailing ideas and the perceptions of the negotiating parties