Trade clause 'aids Maori'

National has accused the Government of backtracking by including a clause in the Thai free trade deal that will open the way for Maori to get preferential treatment.

A national interest analysis tabled in Parliament yesterday said the deal contained a "special provision" whereby "New Zealand maintains its rights to take measures including in fulfilment of its obligations under the Treaty of Waitangi".

But National Foreign Affairs spokesman Lockwood Smith maintains that a clause in the treaty text - which mirrors New Zealand's earlier Closer Economic Partnership with Singapore - "clearly confers some special treatment on Maori".

Smith said National would strenuously challenge the clause when the deal was considered by a parliamentary select committee.

But National would not oppose the overall deal.

Article 15.8 of the treaty says that, provided such measures are not used as a means of arbitrary or unjustified discrimination against the other party (Thailand), or as a disguised restriction on trade in goods and services or investment, "nothing in this agreement shall preclude the adoption by New Zealand of measures it deems necessary to accord more favourable treatment to Maori in respect of matters covered by this agreement including in fulfilment of its obligations under the Treaty of Waitangi".

Smith argues the clause flies in the face of a statement by Race Relations Minister Trevor Mallard last July that "Maori have no extra rights or privileges under the treaty or in the policy of the New Zealand Government".

'We'll be pointing out the hypocrisy of the Government that it says, 'on the one hand that under their policy Maori have no extra rights or privileges under the treaty' - yet this clause clearly reserves the rights to treat Maori more favourably," said Smith.

It was a perfectly valid question to ask the Government to spell out what it had in mind when it said it might need to accord "even more favourable treatment for Maori".

"Obviously, we will argue against that clause being in there but, at the end of the day, we're not going to stand in the way of a free trade agreement that's in New Zealand's interests."

Mallard was not available to comment last night. His spokeswoman, Astrid Smeele, said including treaty principles in legislation was an issue that was "still on the table ... but no work had started on it yet".

The analysis - as expected - points to four key reasons for New Zealand to become a party to the free trade deal:

* The removal of trade barriers.

* The framework it provides for development of economic linkages.

* Supporting wider trade policy interests.

* Cementing stronger links with the Southeast Asia region.

A Government source later pointed out that National had included a treaty clause in New Zealand's General Agreement on Trade in Services with the World Trade Organisation in the 1990s.

But Smith said National had moved on since then.

"With hindsight, we'd say we probably shouldn't have done that then - but just because we got it wrong then, doesn't mean to say you keep getting it wrong."

Such a clause " ... will not be contained in any future deal by a National government".

A spokeswoman for Trade Negotiations Minister Jim Sutton said the treaty and creative arts clauses were "protective clauses" which gave options to future governments.

Pros & cons

Advantages: Boost NZ's relationship with Thailand.

Strengthen NZ's position as negotiations with Asean start.

Disadvantages: Services not included - NZ would have preferred a "more ambitious" result.