Goff pushes Mexican trade deal
The Dominion Post, Wellington
Goff pushes Mexican trade deal
By Sue Allen
19 March 2007
Trade Minister Phil Goff leaves for Mexico this morning to push for a trade deal that could boost exports to New Zealand’s fourth largest market dairy market.
Mr Goff said Mexico’s population growth and changing demographics pointed toward increased demand for New Zealand’s meat and dairy products.
Last year, Mexico imported $424 million of New Zealand products, making it New Zealand’s largest Latin American trading partner.
Mr Goff said there was also potential to enhance existing cooperative activities in agriculture, agribusiness, education, tourism, technology and scientific research.
Mexico’s main exports to New Zealand are computers, beer, motor vehicles and telephone equipment.
In recent years, Mexico and New Zealand had taken its political relationship to a new level, by strengthening personal links and cultural exchanges, Mr Goff said.
"I am now working to move the trade and economic relationship in a similar direction to capitalise on the potential we see in this market," he said.
National’s trade spokesman, Tim Groser, said pushing for a free trade deal with Mexico was "absolutely the right thing to do", and had been a work in progress for more than a decade.
A free trade deal would also help stop New Zealand losing out to Canada and the United States, which have preferential access to Mexico under the North American Free Trade Agreement, or Nafta, which came into effect in 1994.
With the future of World Trade Organisation talks in doubt, it was wise for New Zealand to be pursuing bilateral agreements, Mr Groser said.
The benefit to Mexico could lie in diversifying its economic ties to the Asia-Pacific region, rather than relying heavily on trade with the US and Canada.
New Zealand already has free trade agreements in place with Australia, Singapore, Thailand and the so-called P4 between Brunei, Chile, New Zealand and Singapore.
It is currently in negotiations with China, Malaysia, Hong Kong and the 10-member Association of Southeast Asian Nations trading bloc.
New Zealand is also talking with the Gulf Cooperation Council, which comprises Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Oman.
On Friday Mr Goff called for public views on free trade talks with the six Gulf Cooperation Council states.
Officials are preparing for a first formal negotiating round in June and it was critical to hear from people ahead of the first round, he said. Exports to the Gulf states were worth $791 million in 2006.
