Clark and Bush talk trade

1.00pm

Prime Minister Helen Clark spoke with United States president George W. Bush today, raising New Zealand's hopes of progressing the trade issue during his second term as president.

She was leaving Santiago, Chile, where she has been attending the Asia Pacific Economic Co-operation (Apec) meeting.

Helen Clark said she spoke about the considerable support in Washington DC - both in Congress and the corporate community - for New Zealand to get a free trade deal with the US.

She spoke to the president of the influential US Chamber of Commerce, Tom Donoghue, while in Santiago.

He has in recent days spoken publicly in support of New Zealand.

"I think there's goodwill around Washington DC to build on it and we're just going to carry on the work," Helen Clark said.

Mr Bush was "listening," she said, adding there was common ground between New Zealand and the United States on a range of issues including corruption, trade, links to moderate Islam, and infectious diseases.

However, Act trade spokesman Ken Shirley said Helen Clark was "dreaming" if she thought New Zealand was any closer to getting a trade deal with the US.

"Helen Clark is starting to sound like a broken record. Every Apec meeting she waxes lyrical about the possibility of a free trade agreement with between the US and New Zealand.

"The sad reality is that New Zealand is light years away from any such deal," Mr Shirley said.

National trade spokesman Lockwood Smith also expressed scepticism about the possibilities of a FTA with the US.

Following discussions in Washington seven weeks ago, he had concluded there had been little movement since last year's Apec summit.

Right now, New Zealand was not even in the queue but was waiting behind countries including Botswana, Lesotho, Swaziland, Guatemala and Honduras, he said.

During the Apec meeting Helen Clark also had a "pull-aside" with Mr Bush, where they spoke about the recent US presidential campaign and his re-election.

Helen Clark met today with Russian President Vladimir Putin.

A free trade agreement with Russia had not been discussed, she said.

New Zealand's trade with Russia was very small but the Government was looking at how New Zealand could increase its profile and opportunities there.

While in Santiago, Helen Clark and Chinese President Hu Jintao announced free trade negotiations would begin within weeks on a bilateral agreement which could add up to $400 million a year to the New Zealand economy.

Progress is also being made on the three-way deal between New Zealand, Singapore and Chile, while other bilateral deals such as with Thailand and Malaysia are being discussed.

Helen Clark goes soon to a meeting of Asean nations where a trade deal between Asean countries is on the agenda.

New Zealand is also looking at ways to get more goods into Russia and it continues to hold out hope for a trade deal with the United States.

"We're now opening up so many opportunities for New Zealand exporters that the biggest challenge is going to be at home working with the chambers of commerce and other organisations to alert people to the opportunities that are in these markets -- making sure people are aware, making sure they're ready to take advantage of them," Helen Clark told NZPA today.

Following the announcement of the negotiations with China, Green Party co-leader Rod Donald accused Helen Clark of selling out the human rights principles she used to champion "in order to sell more milk to China".

But Helen Clark said New Zealand could not stand by and let other countries such as Australia and Chile negotiate FTAs with China.

"If we stand back and let countries producing the same goods as we are get preference for their goods in those markets, we would be not only mugs, we would be badly letting New Zealand down."

China knew what New Zealand's feelings on the human rights issue were.

"They're dealing with us in spite of our strong views on this issue. We haven't held back," she said.

Helen Clark said this Apec was unlike others in that as well as terrorism, discussions also took place on infectious diseases -- such as HIV/Aids, Sars and Avian flu -- and corruption.

"It's been quite remarkable for the new ground covered and also for the increasingly free discussion," Miss Clark said.

A proposal by Apec's business committee for an Apec-wide free trade agreement would be a "complex negotiation" and Apec leaders had felt the trade negotiations at the World Trade Organisation (WTO) should be the first priority.

"I think that if the WTO round were to seriously fall over, Apec would come back to this but meantime it's asked the Apec business advisory council to work on it some more over the next year and come back again," Helen Clark said.

- NZPA