Business tries to minimise damage to free-trade talks

By FRAN O'SULLIVAN

For New Zealand business the free-trade initiative with the United States is seen as a potent signal that the Government and business can collaborate in a partnership model.

McKinsey & Company principal Andrew Grant, who has organised much of the fundraising to support New Zealand's lobbying on Capitol Hill, is clearly concerned by Prime Minister Helen Clark's statements regarding the war in Iraq.

"Pulling off the free-trade agreement is critical in terms of the nature of the relationship between the Government and business," said Grant.

"This was one of the credible cornerstones in which business had worked constructively in partnership [with the Government] and had some wins.

"We haven't delivered on the objective yet but there has been good progress."

Grant is working with Washington lobbyist Peter Madigan and influential players such as US billionaire Julian Robertson and New Zealand's Craig Heatley to ensure that bridges between the two countries are rebuilt quickly.

Grant, along with other business people associated with the Knowledge Wave Trust, also had his fingers burned when the Prime Minister accused some of the hosts of February's Leadership Forum of an "unspoken agenda" of "discredited" right-wing policies.

Back then, Clark hit out at Auckland University vice-chancellor John Hood and the 51 per cent of New Zealanders who in a Herald/DigiPoll said they were not confident that the Government had a growth strategy to put the country back in the top half of the world's richest countries.

But Grant said yesterday that the business community was sticking with the partnership model and wanted to bring off a free-trade deal.

A letter has been drafted to US Ambassador Charles Swindells and other steps are underway to try to placate members of the Washington elite who have been offended.

Ironically, the drive to establish a free-trade agreement between the two countries was warmly welcomed in a letter by Clark to Fonterra chief executive Craig Norgate in February last year.

The letter, sent to him in his capacity as president of the New Zealand United States Council, has been circulated in business circles as part of fundraising efforts.

"For New Zealand to be successful in persuading the United States to begin negotiations will require a team effort from the Government and business," wrote Clark.

"The commitment to assist in the preparatory work required before a New Zealand-United States negotiation commences is most welcome.

"Of course, once negotiations begin, the efforts will need to be redoubled, but let's try to get to stage one first."

Stage one was achieved when US Trade Representative Robert Zoellick last year asked Congress to give an opinion on whether he should cut New Zealand a deal parallel to the one now being negotiated with Australia.

Stage two may take a bit longer.