Shipley attacks over tariff cuts

By John Armstrong

WELLINGTON - The Prime Minister yesterday stepped up her defence of Apec by attacking assertions that New Zealand has been the only country in the region cutting tariffs.

Jenny Shipley acknowledged, however, that some countries, notably Japan, were making slow progress in reducing trade barriers.

Mrs Shipley referred to a new Ministry of Foreign Affairs booklet which details average tariff reductions in the region during Apec's first decade.

Trade liberalisation remains a key plank on New Zealand's agenda for next month's summit in Auckland, with the Prime Minister seeking a strong commitment from Apec leaders to progress at the coming World Trade Organisation negotiations.

However, some of the overseas contributors to the booklet warn that individual countries are unlikely to commit themselves to tariff cuts ahead of the WTO negotiations, while others question the success of Apec's programme of voluntary cuts.

With less than two weeks to the start of the summit, Mrs Shipley called a press conference with her Minister of Foreign Affairs, Don McKinnon, and Mike Moore, the WTO's new Director-General, to launch Apec - 10 Years and Beyond.

In that time, New Zealand has cut its average applied tariff from nearly 15 per cent to just over 4.2 per cent. Australia's average has gone from 15.6 to 5.6 per cent, the United States' from 6.6 to 6.4 per cent, and South Korea's from 19 to 8 per cent.

In contrast, Japan's has risen from 7.2 to 7.8 per cent. China and Thailand have cut their average tariffs, but they still average 17 to 18 per cent.

The Philippines averages just over 9 per cent, while Indonesia and Malaysia are close to 12 and 9 per cent respectively.