Extending GE moratorium would add to trade woes: National

By BRIAN FALLOW

Any extension of the moratorium on the release of genetically modified organisms would add to New Zealand's trade policy difficulties, says National's trade and foreign affairs spokesman Lockwood Smith.

"You would struggle to persuade the World Trade Organisation to accept [that] the risks around the science are real," he said.

"The royal commission recommended we proceed with caution. It did not recommend a moratorium. So it is highly unlikely the WTO would reach a different conclusion.

"It [an extended moratorium] would be highly challengeable."

Trade Liberalisation Network executive director Stephen Jacobi put a similar point to Greens co-leader Jeanette Fitzsimons at Business New Zealand's pre-election conference on Wednesday.

"When it comes to GM you propose setting aside scientific considerations," Jacobi said. "New Zealand's international reputation as a defender of science [in trade disputes] could suffer. We could be challenged by our trading partners."

Fitzsimons replied that the Greens' position was entirely based on the science put to the royal commission.

"A number of leading international geneticists told the commission commercial release was not safe at this time and that there was no benefit to New Zealand agriculture from anything on the horizon at the moment."

United States trade representative Robert Zoellick referred to the issue in a speech last week which was seen as very upbeat about the prospects of a free trade deal between Australia and the US.

The two countries should oppose countries' using "unscientifically based objections to biotechnology to stifle advances in farm productivity, nutrition and crops that can resist disease with fewer fertilisers and pesticides".

"And we share an interest in resisting the inappropriate use of sanitary and phytosanitary standards to block competition," Zoellick said.

Smith said New Zealand's failure to achieve a joint initiative with Australia for a free trade agreement with the US was the most significant foreign policy failure of any New Zealand Government in recent times.

The biggest risk if Australia struck a deal with the US and New Zealand did not was the potential loss of investment to the other side of the Tasman.

"Fonterra, for example, could not ignore it if it was able to export something to the US from Australia but not from here."

Smith saw the lack of a joint Anzac approach on a free trade deal as a consequence of a wider deterioration of the transtasman relationship.

"Labour's soft approach on some immigration issues has seen Australia close its borders to some of our people. The Ansett fiasco has left New Zealand being seen as incompetent in the eyes of many Australians.

"Add to that Labour's refusal to deal adequately with the major issues of naval defence and their decision to scrap much of New Zealand's Air Force, and a perception is created that New Zealand is not prepared to face up to our responsibilities in the defence of our region."

As part of repairing that relationship, National would set up a new Cabinet-level post of minister responsible for the relationship with Australia, a recommendation arising from the foreign affairs select committee's inquiry into the state of transtasman relations.

Smith accused the Government of complacency and inertia in respect of a free trade deal with the US.

"It is no use saying, 'We're ready when you are'. We should be proactive, and ask them, 'How do we get on your list?' I don't know what the answer to that question is. But it would make a huge difference just to be asking the question."

* The Bush Administration still lacks the Congressional authority it would need to conclude trade deals.

Incompatible versions of a Trade Promotion Authority bill have passed the Senate and House of Representatives. A conference committee of the House and the Senate needs to agree on a final version, but it is mired in the politics of Capitol Hill.

With mid-term elections due in November, legislative time is running out, as Zoellick acknowledged last week. "I believe we will prevail," he said, "yet it will be close."

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