Minister upbeat on impasse

By Greg Ansley

SYDNEY - Trade Minister Lockwood Smith yesterday depicted a mood of growing optimism that the Auckland Apec summit would produce much more than a papering-over of the cracks that ripped through trade reform in the wake of the Asian meltdown.

In an upbeat message to foreign correspondents Dr Smith played down fears that tensions between the United States and China would overshadow the summit and said New Zealand could help pave the way to a breakthrough in the impasse blocking China from the World Trade Organisation (WTO.

He also noted a new cooperative mood from Japan, whose earlier opposition to attempts to speed up the opening of sensitive agricultural markets was largely responsible for the collapse of talks to accelerate the reform process at the last summit in Kuala Lumpur, Malaysia.

"We've been working very closely with the [Apec] member economies and the mood at the end of the senior officials' meeting in Rotorua was very good," he said.

"I've been very grateful for the positive imput from the Japanese."

He said that the officials' meeting had tried to find a way forward in contrast to the Kuala Lumpur summit, at which key members had simply said key measures could not be taken.

Dr Smith said he did not think the dangers of US-China tensions impinging on the outcome of the Auckland summit were high.

"In fact I think New Zealand is delighted that it may be that we can help the impasse between the US and China with respect to China's accession to the WTO," he said.

"I don't expect any decision to be made in New Zealand, but the mere fact that the two leaders [Bill Clinton and Jiang Zemin] may get together and have a talk is hugely valuable."