US senators lend weight to launch of free-trade talks

US senators John McCain and John Sununu have written to President George W. Bush encouraging him to launch free-trade negotiations with New Zealand.

The letter follows through on the positive noises the two Republican senators made when they visited New Zealand in January.

"It's not likely to lead to any breakthrough, but it is good to have more support, especially from someone as influential as Senator McCain," said Stephen Jacobi, executive director of the New Zealand United States Council, which seeks to expand trade and other economic links between the two.

McCain ran for president in 2000 and might do so again in 2008.

The letter cites projections by the Institute of International Economics that US exports to NZ would rise by about 25 per cent under an FTA.

McCain and Sununu said an FTA would provide tangible recognition of New Zealand's "innovative and sweeping" economic reforms and encourage other countries to follow suit.

And it would be a "natural complement" to the FTA already concluded between the US and Australia.

The two senators also cite New Zealand's contributions to the war on terror, especially in Afghanistan.

"It is no secret that the United States and New Zealand have had differences in the past but we cannot allow these differences to obstruct forward movement in this crucial bilateral relationship."

Jacobi said the letter kept the idea of an FTA "somewhat alive".

"But a breakthrough any time this year is looking remote. They have their hands full with some big negotiations."

Similar sentiments had been expressed after previous visits by Senators Max Baucus of Montana, who serves on the agriculture committee, and Chuck Grassley of Iowa, who chairs the Senate finance committee.

Jacobi said Trade Minister Phil Goff was to lead a group of business leaders, officials and academics at a partnership forum in Washington next month to talk about issues of mutual interest.