Auckland businesses shy from premature support

By Warren Gamble

Auckland business leaders want reassurance that Apec will still be an effective international force before they swing in behind the Auckland summit next year.

The chief executive of the Auckland Chamber of Commerce and Industry, Michael Barnett, said many New Zealand business leaders at the recent Apec meeting in Malaysia were left wondering if progress was made in freeing up trade.

He made the statement at a business lunch yesterday attended by the Prime Minister, Jenny Shipley, and the Minister for International Trade, Lockwood Smith, who were upbeat about the achievements in Kuala Lumpur.

Mr Barnett said the political rhetoric at the summit had masked any advances. New Zealand businesses preparing for the meeting now needed an assurance that the 21 partners were still committed to Apec.

Mr Barnett said businesses particularly wanted the Government to obtain an early assurance from the United States that it would remain committed to Apec's programme in Auckland.

Many commentators felt Apec stalled in Kuala Lumpur. Mr Barnett said American Vice-President Al Gore's comments on political reform and human rights in Malaysia could be interpreted many ways.

"It could have been a reflection of the American-Malaysian relationship or a signal from the United States that they did not think the Apec plan was working.

"We are saying why not ask the questions now and get it cleared up."

Mrs Shipley said behind the media preoccupation with Malaysia's domestic politics, the Apec leaders had made headway on plans to restore confidence to battered Asian economies. The leaders had agreed to a "toolbox" of measures to strengthen domestic financial systems.

And while New Zealand would have liked more from Japan and the United States on trade liberalisation, there were no backward steps towards protectionism as some had feared.

Mrs Shipley also yesterday unveiled the three main themes of New Zealand's year in the Apec chair. They were expanding business opportunities throughout the region, including progressing the early liberalisation of some trade sectors; working with other economies to strengthen the functioning of markets: and broadening community support and understanding of Apec.