US envoy says he's happy to listen

Visiting US Secretary of Agriculture Mike Johanns (left) talks with his New Zealand counterpart Jim Sutton. Picture / Amos Chapple

A free-trade agreement between New Zealand and America is up for discussion with visiting United States Agriculture Secretary Mike Johanns.

Mr Johanns said yesterday that there were no immediate plans for a free-trade agreement with New Zealand - then added that the US had not ruled it out either.

Mr Johanns visited Bruce and Margaret Wilton's Tatuanui dairy farm near Morrinsville in the Waikato yesterday. After sharing scones with cream and jam and looking around the 60ha property, he said he expected a case to be made for discussion on the issue while he was in New Zealand.

His visit, which also included a look at the Dexcel dairy research centre, is the first by a member of the Bush Administration since 1999.

Mr Johanns said he hoped his visit would be seen in a positive light as the US had an excellent working relationship with New Zealand.

He was led around the farm by Agriculture Minister Jim Sutton and slapped him on the back at one point, commenting on Mr Sutton's negotiation abilities.

Later, as a calf sucked on Mr Johanns' hand, Mr Sutton joked that if the animal bit him it would not be good for trade negotiations.

Mr Johanns said the main focus in coming weeks would be the World Trade Organisation's Doha negotiations, which had been deadlocked since 2003 when talks broke down at a meeting in Cancun, Mexico.

Trade officials have said if the Doha round fails, New Zealand will have to rely on bilateral trade deals.

Mr Johanns is to have a lunch meeting with Prime Minister Helen Clark today, where she will press New Zealand's case for a trade deal.

Mr Johanns said he was more than willing to listen, but said the focus was the WTO and the Doha agreement, which he said had reached "crunch time".

"The devil is in the detail," Mr Johanns said.

He said there was agreement in principle on many things but the question was how that could be brought to reality. 

On relations with New Zealand, said Mr Johanns: "I wouldn't describe that there's barriers out there at all. We've had a wonderful working relationship with New Zealand."

Mr Sutton said trade was vital to New Zealand's survival but trade talks were going to get nowhere without co-operation between the US and the European Union.

US President George W. Bush has indicated that he is willing to do away with farm subsidies in exchange for greater access to the EU, while the EU has offered to phase out price support for farmers, but they have still been unable to agree before a planned meeting in Hong Kong this year.

"It's vital that they can agree or we will be going nowhere," Mr Sutton said.