[asia-apec 646] NZ - MFAT Poised For Global Trade Talks

[Gatt Watchdog]

National Business Review, September 4 1998

Mfat poised for global trade talks
By David Barber

The business sector will soon be canvassed by the government for
its priorities in a new round of international trade
liberalisation negotiations.

The Ministry of Foreign Affairs and Trade (Mfat) says it wants to
ensure the government's negotiating position reflects real market
opportunities for exporters.

Initial preparations for a new series of talks on freeing up
global trade in agricultural products and services will be
launched in a meeting at World Trade Organisation (WTO)
headquarters in Geneva later this month.

That meeting will start the preparatory process for developing a
negotiating agenda to be put to trade ministers from all over the
world for approval late next year.

New Zealand is looking for a comprehensive series of multilateral
negotiations along the lines of the Uruguay Round, which ended in
1994, to ensure wide-ranging further trade liberalisation.

But there is a fine balance to be achieved in having a round broad
enough to provide scope for trade-offs between the WTO's 130-odd
members while not so extensive that it will drag on for more than
seven years as the Uruguay Round did.

Much will depend on the readiness of the world's biggest trading
blocs to enter serious negotiations.  The European Union has long
argued for comprehensive talks in what it has christened the
Millenium Round, though it is thought likely to continue to seek
protection for its agricultural sector.

The US has been less enthusiastic about a full-scale round but is
pressing for more progress in freeing up agriculture.  The
agricultural sector was included in global negotiations for the
first time in the Uruguay Round and further liberalisation is
bound to be at the top of New Zealand's agenda, given its
continuing importance to the economy.  A range of farm products
remains subject to absurdly high tariffs in many parts of the
world - rates of 300% are not uncommon and for dairy products some
go up to 700%.

But New Zealand also has keen interest in freeing up trade in
other sectors, including fisheries and forest products, which are
already subject to liberalisation moves in the Asia Pacific
Economic Cooperation (Apec) grouping.

The services sector is no less important as it accounts for about
25% of foreign exchange earnings.  The WTO has also done work on
issues such as competition policy, investment and trade and the
environment which could be brought into the final negotiations.

A satisfactory agreement on implementing provisions agreed in the
Uruguay Round will be essential to get a new round off to a good
start.  A number of developing countries, including India,
Pakistan and some in Latin America, are unhappy with progress made
in freeing up their textile exports.  They accuse their customers
in developed countries of being slow to give them the market
access they promised.