Wishlist for trade talks unveiled

By BRIAN FALLOW

Scrapping the need for Overseas Investment Commission approval for inbound investment or raising the threshold to $200 million are among concessions sought of New Zealand in international negotiations on trade and investment in services.

The Government yesterday belatedly shed some light on the present negotiations on the World Trade Organisation's General Agreement on Trade in Services (GATS).

The Ministry of Foreign Affairs and Trade posted on its website late yesterday a discussion document outlining what other WTO members are asking of New Zealand and what New Zealand is seeking in response.

The consultation document was to have been issued early last month.

The Government's dilemma is that if meaningful progress on agricultural trade liberalisation is to be made in the WTO's Doha round, it is widely believed that the quid pro quo exacted by the Europeans and the United States will be further liberalisation in services.

But services account for the lion's share of economic activity and employment, and GATS critics fear that existing and future concessions in this area will significantly compromise the ability of future governments to regulate services in the public interest.

The Council of Trade Unions is preparing a campaign calling for at least more scrutiny and debate in this area.

On Wednesday a book by Auckland academic Dr Jane Kelsey, In Whose Interest, was launched. In it she lays out the case GATS supporters have to answer.

So wide are the ramifications of GATS, she said, it should be treated as if it were entrenched legislation - with all the scrutiny that would require - and not as an executive privilege to be exercised in secret.

No requests were received in the sensitive health sector, but some of the concessions requested by foreign governments are:

* Either remove the need for Overseas Investment Commission approval of inbound foreign investment altogether or raise the threshold to acquisitions worth more than $200 million (it is $50 million now).

* Scrap the shareholding limitation on Telecom (which restricts any single overseas entity to 49.9 per cent of the shares) and the nationality requirement for directors.

* Cover the full range of higher education services in its commitment.

* In environmental services, where it has no commitments at present, it has been asked to make commitments on water and waste water services, among others.

* Other requests made to New Zealand included improved commitments on airport cargo-handling, Customs clearance services, baggage-handling, aircraft maintenance, fuel handling, catering and computer reservation systems.