NZ in line to join exclusive global trade group

By FRAN O'SULLIVAN

QUEBEC CITY - The powerful US Heritage Foundation has singled out New Zealand as a suitable candidate for membership of a proposed eleven-strong global free-trade club.

A foundation report says it is time for a new system to revive the global free-trade agenda.

Ironically, Australia - which this year cited New Zealand's Anzus record as the reason why it would not negotiate in tandem a free-trade agreement with the United States - has been strongly rebuffed in the foundation's report.

Australia's regulatory system burdens its business with high costs and is an obstacle to membership in the Free Trade Association, the report notes.

New Zealand's inclusion on the foundation list will be a shot in the arm for Trade Negotiations Minister Jim Sutton, who visits Washington next week to open talks on a free-trade agreement with the United States.

Mr Sutton will meet US Trade Representative Robert Zoellick, who is anxious to reinstate fast track authority for the US President to push free-trade agreements through Congress.

The influential Heritage Foundation - which has strong links to US President George W. Bush's new Administration - is unlikely to have voted in New Zealand's favour if it thought the country's defence stance would be an impediment.

The proposed global trade club also includes Chile, the Czech Republic, Denmark, Estonia, Hong Kong, Ireland, Luxembourg, the United States, Britain and Singapore.

"Policies, not borders, determine this association," the foundation report adds.

"The internet makes possible the death of distance.

"Globalisation and the new economy make possible trade links among countries scattered around the world."