Think global, not just US says Sutton

By LIAM DANN primary industries editor

Trade Negotiations and Agriculture Minister Jim Sutton is not giving up on a free trade agreement with the United States but his focus remains firmly on the Doha round of World Trade Organisation talks.

As the Government came under fire last week for its handling of diplomatic relations with the US, Sutton remained calm.

In his usual, laid-back, southern tones he deflected criticism of the Government's diplomatic performance by pointing out that a bilateral deal with the US was only "plan B".

Although such deals had value, it was always a challenge to get them.

"The main reason we've been pushing them along is because it adds momentum to the multilateral negotiations through the World Trade Organisation," he said. "People start getting worried about getting left out and that concentrates their minds."

He was sure the Doha round of trade talks was where New Zealand had its best chance of a better deal for farmers.

Even if a treaty did not include everything that had been put on the table, it could still be worth billions to New Zealand.

"That's just at the upper end of realistic," he said. "Of course, at the bottom end of what could happen is a big, fat zero."

Life is tough for farmers this year. The dollar is too high, commodity prices are too low and the weather has not been kind.

Sutton, a farmer from 1963 to 1984, believes he understands as well as anyone in the Government the pain the rural sector is feeling.

"I'm kind of steeped in the culture. I do feel that gives me a great advantage. I've seen non-farmers try and handle agriculture and I've seen the wool being pulled over their eyes."

Sutton farmed sheep and beef cattle on hill country at Waihaorunga in South Canterbury. His son now runs the farm.

The minister wants to make a difference for farmers, and trade was the area where the Government could do the most to improve their lot.

It is for that reason he spends so much time out of the country.

Sutton has led three international trade missions already this year.

On the latest trip he attended an Organisation for Economic Co-operation and Development meeting and hosted an informal gathering of selected WTO members at a function in Paris. He also travelled to Hungary, the Czech Republic, Poland and Germany, touting New Zealand products - all in the space of three weeks.

His arrival home was at 5am but he quickly boarded a plane to Taranaki where he was due to address dairy farmers.

Sutton faces a balancing act as he tries to meet the needs of farmers and focus on the bigger economic picture.

"Farmers always tend to think they don't get a fair go from Parliament," he said. "But my view is they do get a good hearing."

His colleagues were well aware that the rural sector drove the economic boom of the past two years.

"By and large my strongest ally in the caucus and the Cabinet is the Minister of Finance ... who knows exactly how many beans make five."

So what else is the Government doing to help, now that times are tougher?

There was no chance that there would be any intervention on the dollar, he said. But a lot of work was being done to improve the skills of the rural workforce.

"There's been a growth of professionalism in agriculture that is serving the industry well. Part of that is upgrading of training provisions."

Federated Farmers has criticised the Government for not doing enough to ease the regulatory burden on farmers, particularly on issues such as the Resource Management Act.

Despite his sympathies, Sutton takes the complaints with a grain of salt. "Farmers will always rail against the regulations," he said. "While we can try to make them a bit more user-friendly they are never going to be popular."

Clearly he takes environmental issues seriously.

The mass of conversions to dairy farming over past few years has put pressure on rural waterways.

Sutton is pleased to see the industry regulating itself.

"Fonterra has been going on the front foot," he said. "They are making a virtue of necessity and turning it into a marketing advantage."

New Zealand's clean, green image was a real asset for the industry, he said. His only concern was that Fonterra would become a target of farmer resentment for its environmental efforts.

"It's possible there may be a shareholder revolt that takes Fonterra out of the picture as far as environmental protection is concerned," he said.

If that happened, the gap would have to be filled by the regional councils and more intense regulation, which the farmers would dislike even more.

"I'm hoping there will be a push back by those farmers - who are probably the majority - who realise it has to be done."

The Kyoto Protocol was also unpopular. New Zealand has to lower greenhouse gas emissions and that could mean more regulations and restrictions for farmers.

"It comes up at almost every farmer meeting I attend," he said. "While there are some farmers who work themselves up into a fine old state and are opposed to New Zealand participating, there is a substantial body of farmers that realise this is a real problem"

After nearly 20 years in politics, Sutton is an old hand at working out which issues really matter.

"You have to weigh all the different sources and distinguish between views that are strongly felt and views that are not. You have to have a passion index as well as a straight head count."

The Doha round

* Named for Doha, in Qatar, where trade ministers met in November 2001 and set the framework for wide-ranging trade talks.

* Among the most contentious issues are plans to liberalise trade in agriculture and services.

* Negotiations are being organised by the 146-member World Trade Organisation.

* Deadline for ending negotiations: January 1, 2005.

* Next meeting of trade ministers: September, in Cancun, Mexico.