New York City

Stewart lawyers prepare for star witness

Lawyers for Martha Stewart get their first chance today to cross-examine the government’s star witness, a former brokerage assistant who has delivered testimony against the homemaking maven.

Douglas Faneuil, the Merrill Lynch & Co. assistant who handled Stewart’s well-timed sale of ImClone Systems stock in December 2001, is expected to return to the witness stand for his fourth day of testimony.

Faneuil, 28, testified last week that Stewart’s broker, Peter Bacanovic, ordered him to tip her that ImClone founder Sam Waksal was selling his shares.

He also said Bacanovic, desperately trying to protect a lucrative career at Merrill, pressured him into initially lying to investigators. He changed his story in June 2002 and struck a plea bargain.

Washington, D.C.

U.S., Australia complete free-trade pact

The United States and Australia reached a free-trade agreement Sunday that officials said would eliminate duties from more than 99 percent of American manufacturing exports to Australia.

The deal, which requires congressional approval, also will boost most agricultural trade between the two countries on products ranging from beef to fruit.

The agreement also calls for lengthy phase-in periods to increase Australian beef and dairy exports, responding to pressure from U.S. dairy farmers and cattle ranchers.

On the Australian side, the deal removes tariffs on more than 97 percent of exports to the United States, including a 25 percent tariff on light commercial vehicles.