Anzac spirit, but not on trade deals

Australian Foreign Affairs Minister Alexander Downer has knocked back suggestions that Australia and New Zealand should combine forces to negotiate joint free-trade deals.

Business leaders have suggested a joint trade and foreign affairs agenda be developed in relation to the explosion of Asia-Pacific bilateral deals commonly referred to as the "spaghetti bowl".

"We do have different economic structures," Downer said. "Australia and New Zealand, close as they might be, are not the one country. Things enormously important to us might not be so important to New Zealand.

"Sometimes it makes sense to negotiate separately. We might be able to achieve agreements that are more satisfactory to both of us that way.

"What we have got to be careful of is that countries do not play us off against each other."

Foreign Affairs Minister Phil Goff said it was important Australia and New Zealand operated on a no-surprises basis and continued to consult while negotiating with third parties.

The two countries are in talks with the 10-nation strong Southeast Asian (Asean) bloc to form an Australia New Zealand Asean free-trade deal.

But Downer and Australian senior officials made it clear it would not be in either country's best interests if the bilateral deals being negotiated were done on a joint basis.