[asia-apec 1495] NZ Herald -

[notoapec at clear.net.nz]

02/08/00 - Coalition split in lead-up to Singapore deal 
						By VERNON SMALL deputy political editor

A proposed free trade agreement with Singapore is shaping as the first official split between Labour and the Alliance under a "safety valve" clause in the Coalition agreement.

But Deputy Prime Minister Jim Anderton's conciliatory stance on the free trade deal - known officially as a "closer economic partnership" to downplay its free trade aspects - is raising eyebrows in his own party's rank and file.

Talks over the deal, based on the closer economic relations arrangement with Australia, are some weeks away from completion, although the cabinet has approved New Zealand's negotiating position.

Labour sources said they believed Mr Anderton had accepted arguments in favour of it. But he denies that any decision has been reached, saying the Alliance is waiting to see its final shape before it takes a position.

He said the Alliance had reserved its position on some aspects of the deal, although he would not be specific.

 

National and Act would almost certainly back a free trade deal, meaning Alliance and Green opposition is unlikely to scupper Labour's plans.

Meanwhile, Mr Anderton faces opposition from within his own party, with a recent round of Alliance regional conferences seeing some members pointedly reassert the party's opposition to free trade.

It is a policy Mr Anderton pushed strongly before the election.

"It is bizarre for a country like New Zealand with a $7 billion balance of payments deficit to sign a free trade agreement with a country like Singapore, which normally has a balance of payments surplus," he said in a speech after the free trade deal was announced.

"Just because Singapore and Chile have only a passing acquaintance with democracy, [then Prime Minister] Mrs Shipley seems to think she can bypass New Zealand democracy when she's selling out our country to them," he said.

 Singapore and Chile, with whom New Zealand is also exploring a free trade arrangement, "probably don't have a minimum wage and virtually outlaw democratic trade unions."

But yesterday Mr Anderton said the public would be "pleasantly surprised" by the level of disclosure and the Government's approach to ratification, which in the case of significant treaties would involve Parliament.

Treaties are normally ratified by the Government without taking them to the House.

"I am confident that the ability of the Alliance to differentiate will be part of the more open and democratic and inclusive approach this Government will take to treaty ratifications per se, not just this one," he said.

The party would judge the Singapore deal on whether it was good for the country. Its touchstones would be its impact on jobs, incomes, the regions and sovereignty issues.

"It would be ridiculous of me to say: 'I don't care what's in it. I am opposed to it.' That is ludicrous."

But he drew a clear distinction between bilateral agreements, such as that with Singapore, and worldwide treaties such as the failed multilateral agreement on investment (MAI), which the Alliance campaigned against.

 He rejected claims by anti-free trade activist Professor Jane Kelsey that the Singapore deal was a "Trojan Horse" for free trade arrangements with other countries, a tag senior officials have given to it. He said other bilateral deals would be independently negotiated and scrutinised.
----------------------------------

storyID: 146440
fromname: GATT Watchdog
frommessage: NZ Herald on NZ-Singapore FTA
submit.x: 21
submit.y: 7