Kiwi Expat Association, San Francisco : New Zealand American Association, San Francisco : Kiwis in LA (LA/Auckland Sister Cities Association), Los Angeles
Seattle/Christchurch Sister Cities Association, Seattle : New Zealand American Society, Salt Lake City : New Zealand USA Connection, Honolulu
cc: New Zealand Ambassador, Washington; New Zealand Honorary Consuls in San Francisco, Sacramento, San Diego, Salt Lake City, Seattle, Honolulu
GIDDAY Everyone.
As you are no doubt aware, the New Zealand Government is seeking negotiations with the United States towards a Free Trade Agreement. I am seeking your support for that objective.
As a small nation dependent on overseas trade for its livelihood, New Zealand has long been a proponent of real trade liberalisation. Organisations as different as the the World Trade Organisation (WTO) and Oxfam recognise the capacity of free and fair trade to promote economic growth amongst all nations. Like developing countries, New Zealand suffers serious impediments to growth from the continuation of high levels of trade protection, particularly in Western Europe and North America. We seek the reduction and elimination of unfair barriers to trade.
Our strategy to achieve this aim is being actively pursued at three levels. We are pursuing global trade liberalisation through the WTO's Doha Round which involves 144 countries. We are active also in APEC (Asia Pacific Economic Cooperation), a regional trade and economic facilitation and liberalisation initiative involving 21 economies of the Asia Pacific region. We have concluded one-on-one bilateral free trade agreements with Australia and Singapore, are negotiating with Hong Kong, and are seeking similar arrangements with the US and Chile.
We believe that, while the greatest gains stand to be made from global trade liberalisation negotiated through the WTO, regional and bilateral arrangements can help by demonstrating the gains to be made from liberalisation, and build momentum in the global process.
The trade liberalisation objectives of the United States are very similar to New Zealand's. Now that President Bush has won Trade Promotion Authority from the US Congress, the US is in a position to participate fully in the WTO Doha Round and pursue a number of regional and bilateral trade liberalisation initiatives. It remains active in APEC, has announced its intention of negotiating agreements with five Central American countries, Chile, Moroco and Singapore, and has foreshadowed negotiations with four countries of Southern Africa, and possibly with Australia.
While we strongly support Australia's bid, New Zealand is not yet on the list. We have expressed to the United States our interest in concluding a Free Trade Agreement, and noted that because of the deep integration of the Australian and New Zealand economies, negotiations with New Zealand should be linked to negotiations with Australia. If such negotiations do not commence within reasonable proximity to those with Australia, there is concern that the New Zealand economy may be damaged through the diversion of investment and other economic flows.
A recent report by the Washington DC-based Institute for International Economics indicates that a US/NZ FTA would produce appreciable benefits for both countries, with minimal adjustment costs. Both countries would benefit economically and the demonstration effect of the Agreement would give new impetus to global trade liberalisation (the study is available from the US/NZ Business Council and there is an executive summary on the website of the New Zealand Embassy, Washington www.nzembassy.com ). While trade would increase, greater longer-term benefits may lie in the more conducive and secure environment such an Agreement would provide for increased flows of capital, skills and knowledge.
We have received strong support for a US/NZ Free Trade Agreement from many members of the US Congress, and from the US business sector. Throughout the past century, New Zealand has worked closely with the US in all important walks of international life. We share fundamental human values and a close friendship forged in many fields of common interest and endeavour. We have fought alongside the US in all major conflicts against tyranny and oppression, most recently against terrorism in Afghanistan. A US/NZ Free Trade Agreement is a further positive and logical step in this close and cooperative relationship.
Nevertheless there are those in the US Administration and Congress who continue to regard New Zealand's anti-nuclear legislation, which bans nuclear-armed and powered ships from New Zealand ports, as an irritant. Issues such as agricultural trade access remain sensitive to the US. The challenges these represent should not be underestimated.
It is with this in mind that I am seeking your support for New Zealand's efforts to negotiate a Free Trade Agreement with the United States.
You represent networking organisations in the western US states, whose members include both expatriate New Zealanders and interested and sympathetic Americans. I would greatly appreciate it if you would circulate this message to your members. They in their turn may be able to assist us in winning support amongst key constituencies, particularly the US Congress and business people. They may be able to do this through personal contact or by writing to local representatives.
I shall be undertaking a series of visits to your areas over the next six months and would very much appreciate the opportunity to meet with you and interested members and talk to you further about New Zealand's bid. I hope that at least some of these visits will be in the company of New Zealand Government Ministers or the New Zealand Ambassador. Please direct any questions to me in the first instance and I shall be happy to try to answer them. Clearly I would also greatly appreciate any suggestions that people might have for further approaches we might make or avenues of interest we might explore.
Yours sincerely
Darryl Dunn
New Zealand Consul General
Los Angeles