NZ minister picked for WTO inner circle

Talks aimed at giving the world's poorest nations greater access to the richest markets are under way - and New Zealand's Jim Sutton is in the power centre that is running the negotiations.

The invitation to take part in the confidential inner-circle World Trade Organisation discussions will enable the Trade Negotiations Minister to strenuously assert New Zealand's push for much bigger cuts to agricultural subsidies and tariffs than Europe has so far offered.

But there was no sign that the talks would break a deadlock in negotiations for a global free-trade pact, and anti-globalisation protesters turned out in force hoping that they would fail.

Riot police used pepper spray to hold back protesters as a meeting of ministers from WTO nations got underway at a convention centre about 1km away.

More than 1000 South Korean protesters converged in Hong Kong Island's Victoria Park, holding banners that decried the trade body and carrying a mock coffin to signify the death of the Geneva-based trade body.

"Down, down WTO!" chanted the protesters, many of them rice farmers and fishermen who fear cuts in subsidies and import tariffs will expose their long-protected industries to global competition.

Police officers stood at a discreet distance, but Hong Kong has put some 9000 officers - roughly one-third of its force - on duty for the talks to avoid a repeat of the violence that marred previous trade meetings in Cancun and Seattle.

South Korea's farmers are among the most militant anti-trade activists in Asia and have a reputation for violence.

Elsewhere, four fishermen from a group of Filipinos, Indonesians and Thais jumped from a boat into the city harbour and then clambered back aboard to protest against the talks.

Mr Sutton, who is expected to leave politics to return to the private sector next year, has been concerned he would be left out of the loop at this week's meeting because he had basically been dumped from the Cabinet.

But WTO Director-General Pascal Lamy has ensured that he will be a member of the Core Consultative Group that will try to bring the competing interests of the 149 member nations together.

Mr Sutton said he was more optimistic about the outcome for this week's talks now that he had tested the temperature in Hong Kong.

- additional reporting: Reuters