The Government is to embark on free trade talks with the oil-rich Gulf states.
Trade Minister Phil Goff said the six members of the Gulf Co-operation Council - Saudi Arabia, Kuwait, the United Arab Emirates, Oman, Qatar and Bahrain - had agreed to begin free trade talks with New Zealand.
Goff foreshadowed the possibility of an FTA after a visit to the region last March. The process of concluding one is tortuous, however.
Officials will go the Gulf within a few months for initial discussions on the coverage of the agreement, a broad outline of its objectives and time lines.
A discussion document will then be issued as part of the process of consulting New Zealand companies and the wider public.
"Cabinet will then approve our negotiating mandate and the process of negotiations will begin," Goff said.
