[asia-apec 1506] NZ Business Roundtable on NZ and Free Trade

[APEC Monitoring Group]

The Dominion, Wellington

WEDNESDAY, 09 AUGUST 2000


      B U S I N E S S   S T O R Y
Free trade is best policy for New Zealand - Kerr
09 AUGUST 2000

Free trade is the best policy for New Zealand irrespective of what other
countries may do, Business Roundtable executive director Roger Kerr said on
Tuesday night.
Speaking to a public seminar at the Waikato University Management School, Mr
Kerr said: "We should not allow ourselves to become diverted from free trade
by the red herring of reciprocity".

There was no basis for the argument that a unilateral move to free trade
would weaken this country's negotiating position in future international
trade negotiations, he said.

Mr Kerr noted that "until recently few people have seriously questioned the
benefits that small countries like New Zealand obtain from efforts to foster
growth of world trade through the WTO (World Trade Organisation)".

This situation had now changed with a number of submissions to the Foreign
Affairs and Trade Ministry's public consultations opposing further New
Zealand involvement in the WTO or in any further negotiating round.

Mr Kerr said it was equally disturbing that one group of submissions argued
that this country should only agree to further trade liberalisation on the
basis of strict reciprocity.

"Unfortunately, the recent conduct of the New Zealand Government has not
been beyond reproach. In moving to put an end to unilateral tariff
reductions, the Government is obviously pandering to the critics of free
trade." - NZPA