US group promises support for free trade deal

By FRAN O'SULLIVAN

The powerful American Chamber of Commerce has publicly swung behind New Zealand's case for a free trade deal with the United States, saying it will vigorously push the deal with the second Bush Administration.

Chamber president Tom Donohue, who headed a US business delegation which met Prime Minister Helen Clark on Saturday, later told the Apec chief executives summit he was pushing hard for a free trade agreement with New Zealand.

Donohue said it was "important for our two countries" to press ahead now that the US and Australia had finalised their free trade deal, which takes effect on January 1.

He later told the Herald negotiating a deal with New Zealand was the "right and honourable thing" to do.

Donohue's comments came on the eve of a brief talk planned between Helen Clark and US President George W. Bush.

Clark said last night that she would raise the issue directly with Bush.

"I want to congratulate him personally on the election result ... I'll be saying that I hope in the second term we can make some progress."

The chamber wants the Bush Administration to strengthen ties with Asia out of fear the US could dip out as China increases its own influence through bilateral and regional trade negotiations.

New Zealand's free-trade negotiations with China were seen as another reason the US should move with the Clark Government.

Bush yesterday told the chief executives summit that his Administration would launch some new bilateral deals but New Zealand's name was not singled out.

Trade Negotiations Minister Jim Sutton said he would talk to US Trade Representative Robert Zoellick soon about a proposed deal.