# The Art of the Double-Cross by Donald Trump: Australia and USA Free Trade Agreement (AUSFTA)

John Paull

► To cite this version:

John Paull. The Art of the Double-Cross by Donald Trump: Australia and USA Free Trade Agreement (AUSFTA). 7th International Scientific and Practical Internet Conference: Integration of Education, Science and Business in Modern Environment, Wayscience, Aug 2025, Dnipro, Ukraine. pp.23-25. *hal-05210560*

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Submitted on 14 Aug 2025

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# THE ART OF THE DOUBLE-CROSS BY DONALD TRUMP: AUSTRALIA AND USA FREE TRADE AGREEMENT (AUSFTA)

John Paull

PhD

University of Tasmania, Hobart, Australia

j.paull@utas.edu.au, john.paull@mail.com

**Abstract.** Australia has a Free Trade Agreement with USA (AUSFTA) since 2004. The rhetoric at the time was that this is mutually beneficial. The agreement was negotiated in secrecy, it involved some substantial trade-offs by Australia which were never publicly debated but rather 'dumped' on the public as a fait accompli and hence without a social licence. The AUSFTA disproportionately advantaged USA, for example, by extending copyright from life of the author plus 50 years to life of the author plus 70 years (in Chapter 17, Intellectual Property). Australia has many Free Trade Agreements (FTAs) including with China, Japan, Korea, Indonesia, New Zealand, Malaysia, Peru, and Singapore. Donald Trump has recently unilaterally breached the AUSFTA by imposing tariffs on Australian exports to USA. These are not 'reciprocal tariffs' as Trump claims. Australia does not impose tariffs on imports from USA (in accordance with the AUSFTA). USA exports more to Australia than Australia exports to USA. The conclusions that can be drawn from the US breach of the AUSFTA are that agreements negotiated and signed by USA may be worthless and their net present value has at least been devalued, they persist at the whim of an incumbent president, and the word of USA can no longer be relied upon. If Australia can be double-crossed by USA, then any country can be.

**Keywords:** Free Trade Agreement (FTA), President, tariffs, breach of contract.

## Introduction

A Free Trade Agreement (FTA) removes tariffs between countries. The objective is to reduce ‘friction’ in trade. The rhetoric is that a FTA is a ‘good for both parties’ and creates a ‘win-win’ scenario. Local manufacturing that had benefitted from tariffs may be a casualty of a FTA.

## AUSFTA

George W Bush visited Australia in 2003. His message was: “What I’m committed to is seeing that we can get this free trade agreement done by the end of December. I think a free trade agreement with Australia would be good for America, (and) good for American workers. I also believe it would be good for Australia. Obviously, agriculture is an important issue, (and) intellectual property is an important issue. There’s a lot of important issues we’ve got to work through, and I think we can” [in 1, p.2]. Beware US presidents bearing gifts?

The enabling legislation was the US Free Trade Implementation Act 2004 (Cth) (in Australia), and The United States - Australia Free Trade Implementation Act (in USA). The FTA deal was done in secret between consenting apparatchiks with minimal public input and debate, and the AUSFTA lacks a social licence for the specifics of the deal.

The AUSFTA was in harmony with the then prevailing econometric dogmas of free trade and anti-protectionism. These neoliberal dogmas were promulgated by USA and arguably were ‘Made in USA’. And, the Australian Government of the time was keen to ‘cosy up’ to the USA.

At the time, it was determined in Australia that the costs and benefits of the AUSFTA (to Australia) were hard to quantify [2]. What was crystal clear was that there would be a forever-cost to Australia in changing its copyright rules. Legislation was required to implement these changes. Under the AUSFTA, copyright in Australia was extended from the life of the author plus 50 years to the life of the author plus 70 years [3]. Australia is a net importer of copyright materials, and US is a net exporter of copyright materials. The change plundered the public domain for Australians to transfer wealth to US copyright holders (e.g. Disney) [1, 2]. This privatised the profits and
socialised the costs (transferring funds to US corporations). This enterprising cash-grab was described at the time as “piracy of the public domain” [4, p.220].

Whether good, bad or indifferent, Australia conceded the required concessions and changes and met the demands of the FTA. The AUSFTA has now been in place for two decades. It has facilitated trade between the two countries and has done so with little public contestation or disquiet

<figure><img src="image_2.png" /><figcaption>Figure 1. Trump's tariffs, cartoon by Dave Brown, The Independent, 5 August 2025</figcaption></figure>

## Double-cross

Australia has been double-crossed with the AUSFTA. Australia has conceded all the concessions of the FTA and they are now firmly woven into the fabric of the country. Australia traded off these concessions but the agreed 'deal' of free trade has now been broken.

"The US has imposed a 10 per cent tariff on most imported goods effective 9 April 2025. Most goods originating in Australia are subject to this tariff on import into the US. Some goods are subject to a higher tariff, while others are exempt" [5]. The US has reneged on the AUSFTA.

Some higher tariffs have also been imposed: "Australian steel and aluminium imports to the US are subject to a 50 per cent tariff from 4 June 2025. This is an increase from a 25 per cent tariff imposed on 12 March 2025 ... Some copper and copper-containing products are subject to a 50 per cent tariff from 1 August 2025" [5].

A tariff war is being waged by the US President, Donald Trump on multiple fronts. Tariffs have been imposed by "Presidential Proclamation" and "executive order"; twelve such proclamations and orders are listed on the DFAT page at the time of writing [5]. Trump has referred to his tariffs as "reciprocal tariffs" but these are unilateral tariffs, not reciprocal. Australia has neither reciprocated nor retaliated and has continued to honour the terms of AUSFTA, and US goods continue to enter Australia tariff-free. The Prime Minister of Australia has described the US tariffs as "an act of self-harm" [6] (Fig.1).

## Conclusion

President Donald Trump is behaving like the proverbial 'bull in a china shop'. The breaching of the AUSFTA means that USA can no longer be seen as a reliable partner nor a reliable signatory of any agreement. This erratic and dishonourable behaviour may be a further symptom of the ongoing decline of the USA.

There is an expression 'once a cheater always a cheater'. Trump has damaged the reputation of the USA by bullying its trading partners. This reputational damage and the fostering of distrust will likely persist and may be permanent. It can be anticipated that the distrust will be contagious,
and who could have confidence in an agreement with the US from this point forward if a party can
be double-crossed on the whim of an incumbent president?

FTAs are negotiated with at least lip service to achieving a win-win agreement that benefits both parties (which is to say that they are a 'normal' business agreement that is free from duress and bullying). It is then 'normal' business practice that a contractor who doesn't honour a contract can expect to be black-listed for future contracts. This fate may play out over years, decades, and for the foreseeable future. This does not augur well as the USA declares its aims for AI world domination [7]. How do you deal with a double-crosser? Well, one option is 'run'.

The blatant breaches of the AUSFTA by USA call for a re-examination of other existing agreements; AUKUS and US bases in Australia (for example). As the US becomes increasingly autocratic, chaotic, volatile, febrile, protectionist, isolationist, unpredictable, and conquistadorial, the Australian government's previous proclivity for supporting US military adventurism (e.g Vietnam and Iraq) must bear much greater scrutiny for any future joint military engagement. History suggests that the prevailing bombast, tariff wars, and contractual breaches of the USA may accelerate the decline of that country.

**References:**

1. Rimmer, M., Robbery under arms: Copyright law and the Australia-United States Free Trade Agreement. First Monday, 2006. 11(3).

2. Dee, P., The Australia-US Free Trade Agreement: An Assessment. 2004, Canberra: Senate Select Committee on the Free Trade Agreement between Australia and the United States of America, Parliament of Australia.

3. DFAT, Australia-United States Free Trade Agreement: Chapter 17- Intellectual Property Rights. 2004, (Updated 31 December 2012). Canberra: Department of Foreign Affairs and Trade (DFAT).

4. Lessig, L., Free Culture: How Big Media uses Technology and Law to Lockdown Culture and Control Creativity. 2004, New York: Penguin.

5. DFAT, Latest on US Tariffs: What has changed. 2025, (www,dfat.gov.au at 6 August). Canberra: Department of Foreign Affairs and Trade (DFAT).

6. Kehoe, J., 'Act of self-harm': Albanese resists Trump on tariffs and defence. Australian Financial Review, 2025. 1 June: p. afr.com.

7. Kratsios, M.J., D.O. Sacks, and M.A. Rubio, Winning the Race: America's Action Plan. 2025, (July). Washington: Executive Office of the President of the United States.