US sets hit-list of NZ barriers

By GREG ANSLEY

CANBERRA - The United States has drawn up a hit-list of New Zealand trade sins likely to be used as pressure points in a new World Trade Organisation (WTO) negotiating round.

The barriers to trade in New Zealand, listed in the latest report of US Trade Representative Robert Zoellick, include pharmaceuticals, biotechnology, movies and music.

The Bush Administration is set to take a hard line on trade - particularly against Europe and Japan - as it considers new bilateral and regional pacts, including possible agreements with New Zealand and Australia.

Mr Zoellick's hit-list indicates the priorities of US negotiators for the next round of WTO trade talks, possibly in November.

The report describes New Zealand as a strong supporter of the rules-based trading system and a close partner with the US in the bid to lower global trade and investment barriers.

But it is critical of the Overseas Investment Acts screening programme, Wellington's failure to join the WTO Government procurement agreement, the Coalition Government's brakes on unilateral tariff reduction and its new industry and export assistance programmes.

The report warns that US officials will be closely watching controls on genetically modified organisms and food to ensure that they do not affect US trade interests.

Concerns on intellectual property rights continue because of New Zealand's parallel import laws covering movies, film, books and software.

Other warnings were issued on proposed local content quotas for radio and TV, the monopolies enjoyed by Telecom and agricultural marketing boards - with special attention to the proposed Global Dairy giant and kiwifruit marketer Zespri - and anti-competitive features of the Pharmaceutical Management Agency.

A spokeswoman for Trade Negotiations Minister Jim Sutton said the points made in the report were raised only occasionally by US officials, and Wellington did not necessarily accept all the criticisms.

Work was continuing on several of the issues raised, she said.

New Zealand last year turned a $US185 million ($466.4 million) trade deficit with America into a $US107 million surplus, after a 19 per cent surge to $US2.1 billion in US sales.