Two-way deals the ‘best option’
August 1, 2008 – 11:00 amNew Zealand should aim for more two-way trade deals with countries such as South Korea, the United States and Japan, after the collapse of the latest world trade talks, business groups say.
The New Zealand International Business Forum said it was deeply disappointed the World Trade Organisation meeting in Geneva failed to agree on a way forward in the Doha negotiations, which have been running on and off since 2001.
The talks fell over in their ninth day after cabinet ministers reached agreement on about 80 per cent of a package deal that would have eventually saved the world economy US$130 billion (NZ$175 billion) a year in lower tariffs alone.
The boost for New Zealand had been expected to be significant in the long term, but Wellington Regional Chamber of Commerce chief executive Charles Finny said gains would not have come overnight. The gains would not have been as big as the benefit from the previous Uruguay Round of trade liberalization, which was worth about $1 billion a year to New Zealand.
“Hopefully, we will still realize the gains, but will have to wait a little longer for them.”
The WTO agreement would have meant better market access for agriculture, fisheries, forestry and some manufactured goods. There were also positive signs for trade in services. “It is, therefore, a tragedy that a small number of WTO members were trying to unpick elements of this package.”
The world trade talks should start again in the first months of next year, once the new United States trade representative was appointed after the presidential elections in November, though a completed round could take till late next year, at best.
International Business Forum executive director Stephen Jacobi said New Zealand should now devote resources to bilateral trade talks and find ways to promote freer trade within the Apec group.
Business NZ chief executive Phil O’Reilly agreed there should be a renewed focus on bilateral and multilateral trade agreements.
Mr Finny said there was still plenty to do on bilateral trade talks. “But bilateral solutions are no solutions to a global problem, and we need to keep pushing hard.”
Mr Jacobi said: “Failure in Geneva is bad news for everyone.” It was bad for New Zealand because the chance was lost again for lower tariffs and export subsidies. It was also bad for developing countries looking for better access to developed country markets.
The global economy also needed a boost in confidence that would have come from the completion of the Doha round.
The forum includes New Zealand’s biggest exporters, with a combined $20 billion sales turnover, and leading business organizations.
Meat and Wool NZ was “bitterly disappointed” the Geneva talks had failed, but said optimistic common ground had been agreed in many areas.
Despite the collapse of the Doha talks, agreement had been reached to get rid of agricultural export incentives, cut and cap domestic agricultural subsidies and cut tariff rates in agriculture by at least 54 per cent.
Source: http://www.stuff.co.nz/4637366a13.html