US senators cite barriers to trade deal

By FRAN O'SULLIVAN AND RUTH BERRY

Six visiting Republican senators, three of whom signed a letter to President George W. Bush backing New Zealand's quest for a US free-trade deal, have warned hurdles still exist.

Senator Don Nickles, leading the group, has stressed that a free-trade deal was not just up to the Republicans to approve. It would need bipartisan support from the Democrats to achieve the two-thirds majority in the Senate required to pass resultant legislation.

The Oklahoma-based Senator together with colleagues Gordon Smith of Oregon (who spent time in New Zealand as a young Mormon missionary) and John Kyl of Arizona were signatories to a letter on March 31 last year which asked President Bush to begin negotiations with New Zealand "as soon as possible".

In discussions with Foreign Affairs Minister Phil Goff, Mr Nickles paid tribute to New Zealand's role as a "strong partner" in opening markets around the world and in the fight against terrorism.

But he also expressed concern over the ban on nuclear-propelled ships from entering New Zealand ports - comments that were later repeated to a business audience.

However, Mr Goff indicated that while the issue constituted "unfinished business" from the US perspective, the concerns were not considered to be an outright "deal-breaker".

The nuclear ships ban was supported by two-thirds of New Zealanders, and was a key part of the country's clean, green image.


But Mr Goff is concerned at the prospect that if National changes its policy to accommodate visits by nuclear-propelled ships that might delay progress on a New Zealand deal.

National leader Don Brash confirmed the Republicans had identified the nuclear issue as one barrier during separate talks with the opposition party. Dr Brash and his Foreign Affairs and Trade spokesman, Lockwood Smith, met the senators on Saturday.

National is reviewing its nuclear policy and a report would be out in about a month on what position it should take, Dr Brash said.

"I got the feeling that there would be some real difficulties doing a [free- trade] deal with this Government quite apart from the nuclear issue."

Prime Minister Helen Clark's disparaging comments about President Bush over Iraq last year still "rankled" with Washington, Dr Brash said.


The influential Senate team last week met Australian Deputy Prime Minister John Anderson to try to remove roadblocks to Australia's proposed free-trade deal, which is in the final negotiating stages.

Mr Nickles, who chairs the Senate's Budget Committee, will retire from politics at the end of this year after 24 years.

Others on the trip were Senators Conrad Burns (Montana), Judd Gregg (New Hampshire) and Saxby Chambliss (Georgia).

Free-trade hurdles

Bipartisan support from Democrats needed to achieve two-thirds majority required in the Senate.

The ban on US nuclear-propelled ships from entering New Zealand ports.