[asia-apec 934] GATT Watchdog Media Release: APEC

[Gatt Watchdog]

GATT Watchdog
PO Box 1905
Christchurch
Aotearoa/New Zealand

MEDIA RELEASE

2 December 1998

Shipley Government Running Scared On APEC

On the eve of a post-APEC business breakfast briefing by the Prime
Minister, Jenny Shipley at the Hotel Grand Chancellor in Christchurch,
GATT Watchdog says the Shipley Government is running scared as it tries
to drum up support for APEC from New Zealand businesses.

GATT Watchdog had discussed mounting protest action outside the
Prime Minister's address tomorrow, but decided that the
government, in its desperation to promote APEC, was doing such a
good job of discrediting itself and the free trade agenda that it
was not necessary.

"It is running out of ideas as it seeks public support for
spending at least $45 million to host APEC at a time when the
forum's credibility is at an all-time low. Even New Zealand
businesspeople are now questioning APEC and government claims
about it," says a GATT Watchdog spokesperson, Aziz Choudry.

He pointed to industrialist Gilbert Ullrich, who last week
challenged government support for APEC, the unilateral reduction
of tariffs and the destruction of many small industries.  Mr
Ullrich had said that if APEC turns out to be an exercise in
self-delusion, "it won't bring back the industries or jobs that we
consigned to oblivion in our desire to lead the world."

"The pathetic post-APEC Summit posturing of Jenny Shipley and her
senior ministers merely draws attention to the enormous gap
between their rhetoric and the reality of the failure of APEC to
deal with the economic crisis, and inability to agree on the early
voluntary sector liberalisation package", said Mr Choudry.

"The Government is disingenuously trying to present the outcomes
of the Kuala Lumpur APEC Summit as a wonderful success, a victory
for free trade, and for New Zealand.  But behind all their upbeat
pep-talks lies the fact that the free trade, free market model of
development, and the institutions and processes that promote it are
undergoing a major crisis of legitimacy.  Despite many calls to
rethink the narrow focus on open trade and investment as a means
to achieve economic growth, Shipley and co. show no sign of moving
away from pursuing aggressive trade and investment liberalisation
within APEC.  This continued adherence to market ideology suggests
an ostrich-like desire not to deal with the real world."

"Beyond its wild promises and unsubstantiated claims about the
benefits of APEC, the Shipley government has nothing to say.  Even
the Australian study which the Ministry of Foreign Affairs and
Trade relies on to show the benefits of APEC projects a mere 0.4%
total gain in New Zealand's real GNP after 20 years - not annually
- as a result of liberalisation within APEC.  The government has
been strangely silent about these figures."

"Apparently, one of the key themes of New Zealand's year as chair
of APEC will be "the building of broader support for APEC among
the wider communities of which we are part."  But the government's
message is quite simple - "APEC is good for you because we say
so".  The government's public relations strategy on APEC is a
cynical exercise which seeks to avoid any serious debate," he
said.

"This year, almost ten years after New Zealand joined APEC, the
government announced a Parliamentary Inquiry into APEC and New
Zealand's role in APEC.  Curiously enough, submissions to the
Foreign Affairs, Defence and Trade Select Committee on APEC appear
to have fallen into a black hole."

"While the government has been consulting with New Zealand
businesses about their priorities for APEC 1999, documents
released under the Official Information Act show that the only
consultation it proposes with non-governmental organisations and
Maori is purely for cosmetic purposes."

"More and more people in New Zealand are questioning the benefits
of a free market economic model which has been tried, tested and
has failed to benefit the vast majority of people.  The government
clearly has not learnt from its bad mishandling of the MAI issue.
Instead of promoting genuine, balanced and open debate on APEC, it
is determined to fob us off with empty promises and PR claptrap.
Its strategy for handling APEC will come back to haunt it sooner
than it thinks," warned Mr Choudry.