Freer trade tops PM's wish list for summit

By AUDREY YOUNG

Prime Minister Helen Clark arrives in Chile this morning for the Apec summit, ready to weigh in behind a proposal for a free-trade agreement in the Asia-Pacific region.

And she says New Zealand and two other countries are developing what could be a starting point for an Apec-wide agreement in negotiations for the P3 (Pacific three) free-trade deal.

"There is no reason why the trilateral one, Chile, New Zealand and Singapore, couldn't be the basis of it," she told the Herald before she left.

She also said that while the initiative was not on a formal agenda of the leaders' meeting starting on Sunday - their discussions are structured around themes - if she didn't raise it, another leader would.

That P3 deal is being structured so that any other willing country in the region will be able to join - Brunei is sitting in on the talks with the possibility of joining either during the talks or later.

Apec's Business Advisory Council (Abac) in August came up with the Apec free-trade area proposal to be put to leaders on Sunday.

New Zealand is promoting the initiative as an alternative to the possible failure of the World Trade Organisation's Doha round.

Trade Negotiations Minister Jim Sutton said in Santiago yesterday that in the event of a failure, the WTO should not try to relaunch another round but would need to spend a couple of years looking at its own processes of decision-making.

An Apec free-trade area could be waiting there as an alternative for those who wanted to participate.

Doha's success is New Zealand's highest trade priority, but whether it flies or not will almost certainly be known by mid-2007, when President George W. Bush's current Congress' trade promotion authority expires.

Mr Sutton said New Zealand was trying to get a "high-quality" agreement in the P3 - unlike many of the 200-plus bilateral free-trade agreements around the world.

"Many are not worth the paper they are written on. They are not comprehensive."

Mr Sutton and Foreign Minister Phil Goff yesterday sounded out counterparts in Santiago during a series of bilateral meetings with Apec counterparts.

Mr Sutton met trade ministers from China, Indonesia, Singapore and Chile and discussed the Abac initiative with them.

"There is a feeling it is an important suggestion," he said. "At the same time it's not going to be activated in top gear until and unless the Doha round falls over."

Mr Goff spent yesterday in ministerial meetings, but the day before he travelled an hour and a half to Valparaiso, where Chile's legislature sits, to talk about the P3 to the foreign relations committees of both the Senate and the House of Deputies.

There was a concern in Chile's southern dairy country that the removal of tariff barriers would flood its market with New Zealand dairy produce.

"I pointed out that our dairy produce was in huge demand around the world and that, if anything, Fonterra is probably looking at sourcing some of its supply from Chile, rather than increasing its supply into the Chilean domestic market."

The agreement was more about collaboration and co-operation than "sharpening the competition between the two countries".

Helen Clark will be briefed by Mr Goff and Mr Sutton as soon as she arrives.

She will spend tomorrow in successive bilateral meetings with leaders: President Ricardo Lagos of Chile; President Hu Jintao of China (when the seal will be put on negotiations for a free trade agreement); Prime Minister John Howard of Australia; President Alejandro Toledo of Peru; Prime Minister Abdullah Ahmad Badawi of Malaysia; and President Susilo Bambang Yudhoyono of Indonesia.

Who's who

Apec: The Asia-Pacific Economic Co-operation forum, now meeting in Santiago, Chile.

P3: A proposed three-way trade deal between Singapore, Chile and New Zealand. "P" stands for Pacific.

Abac: Apec's Business Advisory Council, which has proposed other possible trade deals.

Changing with the times


Prime Minister Helen Clark is getting to be an old hand at Asia Pacific Economic Co-operation summits and she has the wardrobe to prove it.

She has a blue blazer from Brunei in 2000; a brocade jacket from China in 2001; a smock from Mexico in 2002; and a silk jacket from Thailand last year.

Added to the collection this year will be a "chamantos" or poncho from Chile.

Made from woven silk and wool, it is reversible. Traditionally the dark side of the poncho is used during the day, and the light side at night.

The making of the garment can take up to four months, says the Apec website.

It remains to be seen whether Helen Clark continues to wear the poncho, as she has the Thai jacket.

The official Apec team photograph, with all leaders in their chamantos, will be taken on Monday.