Clark pushes free trade deal in Europe
The Dominion Post | Thursday, 4 October 2007
Clark pushes free trade deal in Europe
By MARTIN KAY
Prime Minister Helen Clark has made a renewed push for a free trade deal between New Zealand and the European Union, though she admits it is likely to be five years before real negotiations begin.
Miss Clark said yesterday that the growing relationship between New Zealand and the EU made it inevitable a free trade deal would be agreed at some point in the future.
New Zealand is presently discussing an agreement with China and also has deals with several other countries, including Australia and Thailand and a multinational deal with Singapore, Chile and Brunei.
However, Miss Clark said that as New Zealand links with the EU began to increase, rather than diminish, over time, the issue of free trade would arise.
She said this would take on new urgency as the EU progressed existing talks with Korea, Canada and other countries.
"At some point in my view, New Zealand’s mind has to turn to some more serious bid with Europe, particularly as it starts to enter in engagement with others which could undercut our position."
"It does seem obvious that if we were to express an interest in a free trade agreement, Europe would at some point have to give it consideration."
However, formal negotiations were unlikely to begin till at least 2012 as they had not been included in a five year plan of cooperation between New Zealand and the EU, signed last month.
This was despite recent agreements that New Zealand and the EU hold broad-based trade talks every year and cooperate on resolving the stalled Doha trade round.
The EU is New Zealand’s second biggest trading partner.
New Zealand exports $5.2 billion in mainly agricultural goods there a year and imports nearly $7 billion.
Talk of a trade deal took the focus off climate change, which has dominated Miss Clark’s meetings with EU leaders during her visit.
However, it was on the agenda earlier in the day when EU president Jose Manuel Barroso said he was keen to work with New Zealand to develop an international carbon trading market - a key plank to curb climate change.
He said he was impressed by the proposed model for New Zealand, unveiled by the Government last month, and believed all countries needed to work together on the issue.
"We are aware of the progress made by New Zealand on this matter, we are very much looking forward to cooperate with New Zealand and other relevant partners [to see] what we can do together to [establish] a global market for these issues."
Carbon markets are seen as an important tool in reducing Greenhouse gas emissions because they require big polluters to cut down or buy "carbon credits" from companies that produce few emissions, such as forests.
