Sutton takes NZ's trade case into Zoellick's den

By FRAN O'SULLIVAN assistant editor

Trade Negotiations Minister Jim Sutton will press New Zealand's case for a free-trade deal with US Trade Representative Robert Zoellick in Washington today.

Sutton - direct from the Cairns Group meeting in Costa Rica - will also press home to Zoellick the agriculture exporting nations' call on the major powers to take the lead in unlocking the stalled World Trade Negotiation talks.

"There is a strong feeling within the Cairns Group that we need to make a big stand, otherwise we are going to lose the opportunity of a generation to get some real progress in agricultural trade," said Sutton.

Yesterday, the Cairns Group called for the end of all forms of export subsidies by a specific agreed date as necessary for the success of the current WTO negotiations.

And the 17 agricultural exporting nations plan to build a bridge to the G20 group of developing nations led by Brazil, China and India.

G20's emergence before last year's WTO talks in Cancun broke up the European Union/United States duopoly which threatened to dominate the global trade negotiations.

A powerful Cairns-G20 alliance would upset the world trade power balance.

Australian Trade Minister Mark Vaile, who chairs the Cairns Group, was not openly attacked for dropping the ball during his pursuit of an Australian free-trade deal with the US.

"There was no overt criticism of Australia," said Sutton, but " ... plenty of references to the need for Cairns Group members to get a new sense of urgency."

The Australian/US deal has been dubbed "Aussie Lite" for its soft pedalling on agricultural liberalisation and "it's generally taken as evidence it's going to be a pretty tough hard slog making progress in agriculture," Sutton said.

He would not canvass any proposals he might put to Zoellick to ensure New Zealand does not stay permanently disadvantaged by Australia's recent deal.