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US, Australian trade talks go down to the wire

AFP, Washington
Top US and Australian trade negotiators held another marathon session of talks on Friday, as a deadline fast approached to seal a free trade pact threatened by a row over access to US agricultural markets.
US Trade Representative Robert Zoellick and Australian Trade Minister Mark Vaile locked horns all day, following late night talks on Thursday night.
Negotiations are continuing. We are working hard to complete the free trade agreement," said Richard Mills, Zoellick's spokesman.
"They are still talking," said an Australian official on Friday evening.
The talks hit a sticky patch after the United States dug in its heels over access to its heavily-protected sugar market - and Australia has warned that there must be agreement on all areas for a deal to succeed.
But a congressional source
familiar with the talks suggested both sides may be working on a face-saving formula, with Washington perhaps offering concessions in other markets.
Vaile signalled earlier this week that he would not stay in Washington indefinitely, while Zoellick was due to leave on a trip to Asia at the weekend.
"I think that today is close to being the last day, maybe they could stretch over into tomorrow," said the congressional source.
"If they can't come to an agreement, what is the point in carrying on talking?"
The current round of talks in Washington has dragged on for two weeks under a news blackout, with little sign of progress towards a deal seen by some in Australia as a payoff for Prime Minister John Howard's support in the Iraq war.
Should the drive for a deal founder, it is questionable whether the Bush administration
would want to revisit the politically sensitive issue during the run-up to his re-election battle in November.
An Australian official told AFP this week that while his delegation hoped for success, "we will not do a deal at any cost. Nothing is agreed until everything is agreed."
Trade between Australia and the United States hit more than 28 billion dollars last year. The proposed trade deal would further eliminate trade barriers and increase market access for both sides.
The US Chamber of Commerce, quoting US industry analyses, says the deal could boost US gross domestic product by more than two billion a year by 2006 and hike US exports by 1.8 billion dollars.