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CANBERRA: US President George W. Bush said yesterday he was confident the United States could reach a free trade agreement with Australia this year and give a boost to both countries and to the Asia-Pacific region.

Australia and the United States, its second largest trading partner after Japan, are trying to thrash out a free trade arrangement by the end of the year, as major countries scurry to strike bilateral trade deals while multilateral talks stumble.

Australia and the United States began free trade negotiations in March and both countries want to complete an accord by early next year so that it can be presented to the US Congress before the presidential election in November 2004.

Bush, on a whirlwind tour to Australia at the end of a six-nation Asia-Pacific tour, reaffirmed his commitment to a free trade pact with his close ally, saying the negotiations could be completed by the end of December as scheduled.

"I think a free trade agreement with Australia will be good for the United States, for American workers. I also believe it will be good for Australia," Bush told reporters.

Trade between Australia and the United States - two of the world's biggest farm exporters - totals US$28 billion a year, but agriculture was expected to be a key stumbling block. No details on trade proposals from either country have been given.

Agencies via Xinhua

(China Daily 10/24/2003 page6)