Apec: Howard to visit soon for talks on free-trade stance

By Greg Ansley

CANBERRA - The Australian Prime Minister, John Howard, will visit New Zealand this month for key talks as the Government prepares for the crucial Apec summit in September.

With support for free trade wilting under Asia's economic meltdown and a fierce battle looming over the future of global agricultural markets, Canberra is keen to support New Zealand's handling of the summit.

Australia is also worried by the possibility of new tensions flaring in the region as economic pressures distort military acquisitions and internal political upheavals boil.

Although there are a number of transtasman issues - most recently the Anzac frigate decision, Canberra's ban on apple imports and concern over New Zealanders migrating to Australia - international and economic developments are expected to dominate the talks between Mr Howard and Prime Minister Jenny Shipley.

"Aside from developments in Australia and New Zealand and our bilateral relationship, Mrs Shipley and I will discuss the regional and global challenges both our countries face," Mr Howard said yesterday.

"New Zealand's chairing in September of the Apec leaders' meeting will focus Asia-Pacific attention on the transtasman area and will provide an important opportunity to help to create the right conditions for a return to sustained growth in our region."

Australia is anxious to put the Apec process back on the rails after Japan's refusal to hasten the liberalisation of nine trading sectors led to the collapse of what was to have been the centrepiece of last year's summit in Malaysia.

Canberra is also anxious to continue its close alliance with Wellington in the run-up to renewed discussions on world agricultural trade this year, working with the Cairns Group of fair-trade nations to have the talks included in a comprehensive new round of World Trade Organisation negotiations.

Both Australia and New Zealand fear that if the European Union is successful in excluding agriculture from the comprehensive round, farm trade will be sidelined for years.

Mr Howard, whose visit from February 20 to 22 will include discussions with Mrs Shipley in Queenstown and the cabinet and Opposition and business leaders in Wellington, is also likely to show keen interest in New Zealand's tax system as he battles to get his own GST through a hostile Senate.