[asia-apec 1569] Singapore - NZ FTA - Singapore Straits Times 8/9/00

[APEC Monitoring Group]

S'pore-NZ pact a model for Asean




By DOUGLAS WONG

THE new free trade agreement (FTA) between Singapore and New Zealand has
added momentum to a broader deal between Asean and Australasia, New Zealand
Trade Minister Jim Sutton said on Wednesday.

Speaking to The Straits Times after a three-nation tour -- in which he
visited Jakarta, Singapore and Kuala Lumpur -- he said that he was hopeful
of progress on a link between the Asean Free Trade Area (Afta) and the
Australian-New Zealand FTA known as the CER (Closer Economic Relations).

""The joint task force studying a tie-up concluded last month that it would
be both possible and desirable, and ministers will consider their report
next month at the Asean Economic Ministers meeting in Chiang Mai,'' he said.

The tie-up could generate some US$50 billion (S$86.9 billion) in new
business over the next 20 years.

Mr Sutton said that he had discussed the issue with his Singapore
counterpart, Brig-Gen George Yeo.

""We all recognise there needs to be an early dividend for less developed
economies and that we also need to look at the non-tariff barriers to
trade''.

The agreement between New Zealand and Singapore on a Closer Economic
Partnership (ANZSCEP) is being seen as a model for the broader link, he
added.

He noted that Malaysia's International Trade and Industry Minister, Datuk
Rafidah Aziz, had told him that she was not enthusiastic about the term
""FTA'' and said that she preferred the Afta-CER link to be based on the CEP
model.

""We blazed a trail with the CEP; it's a state-of-the-art agreement with
rules of origin designed for the globalised manufacturing change, which is a
useful precedent for Singapore.

""It also treats agriculture the same way as everything else, a useful
precedent for us.''

Singapore and New Zealand inked their deal last month, after under a year of
negotiations, and Mr Sutton said that while there had been some vocal
opposition to the deal in his country, he was sure there would be
overwhelming parliamentary support for it.

""I am going to do my absolute best to get it into operation by Jan 1,
2001.''

On the multilateral trade front, he said that the World Trade
Organisation -- headed by New Zealander Mike Moore -- was unlikely to start
a new global round of negotiations this year.

""I speak to Mike quite frequently. But while he still thinks there is a
small chance, my sense is that we are not going to have another round this
year.''

He was also cautious about progress by the Asia-Pacific Economic Cooperation
(Apec) Forum.

""The reality in international diplomacy is that you move a little bit at a
time. I am satisfied if we make any detectable forward movement,'' he said
of Apec.

""That is why we are working on bilateral and regional FTAs. I think it is
gaining momentum.''

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