Law professor criticises new FTA
NZPA | Monday March 02, 2009
Law professor criticises new FTA
A new 12-member free trade agreement between New Zealand, Australia and the 10 ASEAN countries has not got everybody’s stamp of approval.
The AANZFTA was signed in Thailand on Friday night (NZT) and is projected to be collectively worth around $500 million through the reduction of tariffs and transaction costs.
The agreement has been warmly welcomed by groups such as Federated Farmers who say it presents a huge opportunity for New Zealand farmers.
However, Auckland University law professor Jane Kelsey says negative aspects of the agreement are being ignored.
"The agreement reinforces the business model over New Zealand ’s services sectors, including public services and infrastructure, and restricts the government’s ability to protect local industry and essential assets from foreign control," she says.
Kelsey says the government has inflated potential returns for the primary production sector and that free trade agreements are flawed.
"The government’s devotion to these agreements reflects their crude belief that global free markets really will work, despite the evidence of their failure all around us. New Zealand needs a more sophisticated understanding that these agreements are destructive both socially and economically," she says.
The view is far from those like Business New Zealand councillor Phil O’Reilly who says there are benefits from bringing "the Asian centre of influence closer to New Zealand".
He says AANZFTA will improve market access and set New Zealand exporters up to reap future rewards.
"It could not have come at a better time given recent protectionist signals from other parts of the world."
To find out more about the AANZFTA agreement, CLICK here.
