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Australia pushes for sugar in trade talks

WASHINGTON, Feb. 6 (UPI) -- The U.S. and Australia are close to signing a free trade agreement, one that offers gains for many Australian businesses, but doesn't yet include sugar.

The Australian Government is reportedly leaning toward signing the deal because it would be positive for many sectors, although the U.S. is holding out on the issue of increasing imports of Australian sugar, The Australian reported Friday.

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Prime Minister John Howard is expected to try to secure a concession on sugar in a conversation with U.S. President George Bush after formal talks in Washington end Friday.

As talks between Trade Minister Mark Vaile and U.S. Trade Representative Robert Zoellick continued Thursday, the sugar industry warned the Australian Government faced a rural backlash if it failed to secure U.S. concessions.

"There would certainly be a hell of a backlash," Australian Cane Farmers Association chairman Ross Walker said. "A lot of farmers are placing a lot on this outcome."

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