Statesman well placed to promote NZ interests

By FRAN O'SULLIVAN assistant editor

Former Canadian Prime Minister Brian Mulroney will champion New Zealand's accession to Nafta, the world's richest free trade pact, during a visit to New Zealand this week.

As broker of the North American Free Trade Agreement, Mr Mulroney is ideally placed to advocate the economic benefits that countries such as New Zealand and Canada can achieve through free trade deals.

During his three-day tour, Mr Mulroney will hold talks at Parliament with Trade Negotiations Minister Jim Sutton and senior Foreign Affairs officials.

He will also meet National Deputy Leader Bill English and Shadow Foreign Affairs Minister Max Bradford and address business audiences in Auckland and Wellington.

Mr Mulroney's visit comes as New Zealand struggles to raise a strong profile within the United States for its push for a free trade agreement.

Mr Sutton recently visited Washington to open New Zealand's lobbying campaign for a free trade pact with the United States. The Trade Negotiations Minister stroked the right political players but was given a clear message that the first US priority was to kickstart the stalled World Trade Organisation round.

The Australian Government has stitched together strong United States business support for its own case for a US free trade pact. Australia early this year jettisoned combined moves with New Zealand to form a three-way trade agreement with the US, citing this country's defence issues.

But although Australian Prime Minister John Howard will go to Washington on a state visit this year, the Bush Administration unofficial word is that any so-called negotiations with the Howard regime will simply be shadow-boxing.

The real discussions will take place once the Australian election is out of the way and Labour governments are installed on both sides of the Tasman.

Mr Mulroney's visit is at the invitation of Sir Anthony O'Reilly, executive chairman of the Herald's parent company, Independent News & Media. Mr Mulroney sits on the INM's international advisory board alongside several other statesmen.

The New Zealand Apec Business Coalition Executive director, Anatole Bogatski, who organised the Mulroney visit, said there was strong business interest in the Nafta option.

"We expect Mr Mulroney's profile will greatly boost our push to get New Zealand business behind the drive for a free trade agreement with the United States," said Dr Bogatski.

As Canada's Prime Minister from 1984 to 1993, Mr Mulroney orchestrated several policy initiatives, including the initial free trade agreement with the United States followed by Nafta negotiations.

The ground-breaking trade agreements have spawned a high financial dividend for Canada. Merchandise exports to the United States have more than tripled.

The Uss now accounts for 87 per cent of Canada's exports, up from 71 per cent in 1988, and exports in goods and services now account for fully 45 per cent of Canada's output, up from 23 per cent when the original free trade agreement was negotiated.

In the Nafta, Mexico has become America's second largest trading partner after Canada, and Canada has become Mexico's second largest customer after the United States,.

Mr Mulroney also undertook a raft of economic reforms, including the privatisation of dozens of crown corporations, financial services reform, and tax changes, including the introduction of a goods and services tax.

Mr Mulroney's tour begins tomorrow when he gives the keynote address at Year 2001 - Creating the Circuit Breaker, an invitation-only seminar at Auckland University.

This seminar will refine crucial challenges for next month's Catching the Knowledge Wave conference to address.

Mr Mulroney will be joined by distinguished panelists, including Professor Peter Gluckman (dean of the Auckland Medical School), Carter Holt Harvey chief executive Chris Liddell, Auckland City Missioner Diane Robertson, Te Puni Kokiri chief executive Leith Comer and Gavin Ellis, editor-in-chief of the New Zealand Herald. They will be joined by University of Auckland vice-chancellor John Hood and 60 key influence brokers.

The Herald is co-sponsoring tomorrow's seminar with Auckland University as part of its contribution to the development of New Zealand as a Knowledge Society.