Trade pact rush raises private sector's fears

By YOKE HAR LEE

Several private sector organisations have raised concerns over New Zealand rushing into a free trade pact with Chile and Singapore.

The Independent Business Foundation, the Manufacturers Forum of the Employers Manufacturers Association and the Export Institute of New Zealand want the government to get more private sector input before advancing negotiations.

Ralph Penning, executive trustee of the Indepedent Business Foundation, representing the organisations, said the government has not consulted private sector representatives to get their views.

He said Wellington was scheduled to have a further round of negotiations from February 26-28.

Due to the major redirection of the new government, government departments were also lacking direction and not synchronised in their moves, Mr Penning said.

The private sector officials were concerned that New Zealand manufacturers would be exposed to unfair competition if a free trade pact was cemented quickly.

Both Singapore and Chile are seen as countries which provide assistance to their local industries while New Zealand does not.

Gilbert Ullrich, managing director of Ullrich Aluminium and a committee member of the Export Institute of New Zealand (Auckland) said the private sector considered the agreements could be harmful if they had no input.

The government's most immediate task, Mr Ullrich said, ought to be focused on how to find ways to grow New Zealand's small businesses rather than having agreements which would endanger local manufacturers.

Mr Penning said: "It is evident that Singapore takes advantage of finishing opportunities of products sourced from low cost South East Asian countries that are exported in its own name. Chile enjoys significant levels of government assistance which give its exporters an unfair advantage over their New Zealand counterparts."

Mr Ullrich added that while New Zealand was dithering over how to inject life into manufacturing, countries such as Singapore have been busy scouting for innovative New Zealand companies and inviting them to locate their activities in Singapore.