Free-trade talks with the Gulf Co-operation Council have been postponed, with the group of six states holding a formal review of its position.
Trade Minister Phil Goff said the council was negotiating with 13 countries or groups of countries and had advised it was postponing most of its
free-trade talks until early next year to undertake the review.
The Ministry of Foreign Affairs and Trade would work to secure a revised timetable for negotiations to resume as soon as possible, Goff said.
"There was no reason not to be confident that the negotiations would resume next year," he said.
"We believe on the basis of the discussions we have had so far that a high-quality outcome is likely on conclusion of the talks."
The council included Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Oman, comprising 2.2 million sq km, about 35 million people, at least 44 per cent of world oil reserves and a gross domestic product in 2006 of US$592.8 billion ($961.7 billion).
"The New Zealand-GCC negotiations have made good progress to date, particularly in the area of market access for goods," Goff said.
New Zealand exports to the council averaged $686.2 million between 2004 and 2006, with dairy produce accounting for $460.1 million and meat, including offal, making up $94 million.
A fourth round of negotiations had been scheduled for this month.
Details on the negotiations from the Ministry of Foreign Affairs and Trade website said most New Zealand exports fell within a common external tariff of 5 per cent.
The tariffs were generally low by international standards but New Zealand's competitive edge could be eroded by agreements the group was reaching with economies, including the EU, India, China and Japan.
An agreement would aim to cover substantially all trade, with an objective of moving towards deeper economic integration with the group, the ministry said. Exports were dominated by goods, although New Zealand had growing interests in services including communications technology, education and engineering.
