'Fingers crossed' Chinese will approve meat plants

By FRAN O'SULLIVAN assistant editor

The Government hopes 45 New Zealand plants which already meet tough European Union sanitary standards will be cleared to export meat to China for the new season.

Trade Negotiations Minister Jim Sutton said Chinese officials had made it clear they would need to inspect at least a sample of the plants from an EU-approved list which had been submitted to Beijing.

But he was pretty confident this could be done in time for registrations to be finished and import permits issued before the season starts in November-December.

"We are keeping our fingers crossed all this can be done in time."

New Zealand diplomats put a compromise to Chinese authorities after their surprise refusal to issue any new registrations for New Zealand plants unless they had first been passed by Chinese inspectors.

A Chinese Embassy spokesman, Zhang Wei, stressed that Beijing did not wish the matter to spoil free trade talks with New Zealand and was "determined to resolve this issue as soon as possible".

"When they send the list to China and start discussing the qualifications of the plants - then send an inspection team here - this kind of issue will disappear," said Mr Zhang.

"We do not want to damage the bilateral trade nor do we want it to hurt New Zealand meat exports."

Chinese authorities failed five NZ plants on two scores:

* They were not fully integrated - the slaughter of animals was separated from packaging.

* Sanitary conditions did not meet specific requirements - some did not have cooling systems for waste-water processing.

Mr Zhang stressed that China had originally compromised its own rules in New Zealand's favour two years ago to allow this country to supply the Chinese hospitality trade and meat for processing and re-exporting.

The New Zealand meat trade had since burgeoned to reach nearly $140 million last year.

NZ trade deal update

China Officials are flat out on a feasibility study which will pave the way for Prime Minister Helen Clark and President Hu Jintao to announce formal negotiations when they meet at the November Apec.

Thailand The Thais want negotiations finalised so Prime Minister Thaksin and Helen Clark can announce a deal at the Santiago Apec. Sutton says negotiations will have to go at "breakneck speed" to meet the deadline.

Chile Chilean farmer fears over Fonterra mean the deal will not have much in it for agriculture. The prime focus will "substantial growth in trade in services" and co-operation in research, science and technology.

Pacific Three (P3) Sutton has "high hopes" this three-way deal linking New Zealand with Singapore and Chile will be completed in 2004. Australia and the US broke away from earlier P5 discussions to go it alone.