PM makes new regional chums

By AUDREY YOUNG in Santiago

Helen Clark said "hasta la vista" to Chile yesterday, upbeat that trade and its flow-on for New Zealand is firmly back on regional agendas.

The Prime Minister will arrive back in New Zealand buoyed by her success, not least with her own role at the Asia Pacific Economic Co-operation forum.

Advising the leaders of the United States, China and Russia on the finer points of leadership, albeit on HIV Aids, would be a career highlight for anyone.

But, unusually for Apec these days, it was trade that got her feeling high, and especially trade with Asia.

The China free trade negotiations have the go-ahead; the Pacific Three deal with Chile and Singapore is back on track; a study is under way with Malaysia; a deal with Thailand is to be unveiled next weekend; and she and Australian Prime Minister John Howard will head to Laos where they will be invited to begin separate negotiations for a free trade agreement with the 10 countries of Asean - the Association of South East Asian Nations, with a combined population of 500 million. Not to mention New Zealand's already close partnership with Singapore.

Little wonder the Prime Minister describes New Zealand as being on the brink of "a new era" in the relationship with Asean countries, in particular Malaysia and Indonesia.

It is likely that China's interest in doing deals with New Zealand and Australia was the driver for Asean's invitation.

Such a move would have been unthinkable under the human blockade of Dr Mohamad Mahathir and the uninspiring Megawati Sukarnoputri. That is why establishing a good relationship with their successors is vital to New Zealand's trade policy interests.

Apec gave Helen Clark the chance to meet both for the first time in their new roles.

New Zealand and Australia are especially encouraged by Indonesia's message that it wants a more "inclusive" relationship for both of them in the region.

Susilo Bambang Yudhoyono is the first directly elected president of Indonesia's 222 million people. Small talk at his meeting with Helen Clark began with his complaint that it had taken 30 hours to fly to Santiago, by a convoluted route.

She insisted he should travel through New Zealand next time, as did the Thai and Singapore leaders.

She also sat next to Mr Yudhoyono at the official leaders' dinner over several hours, and shared a stage with Abdullah Badawi, the Prime Minister of Malaysia's 25 million people and chairman of the Non-aligned Movement and the Organisation of the Islamic Conference, with whom she reviewed the arguments of New Zealand's opposition to the "invasion of Iraq".

Allegations over the SIS are set to be a major distraction this week as Helen Clark prepares for the weekend's Asean summit.

But as she folds away her Apec poncho, she will be able to reassure herself the work done in Chile has increased New Zealand's fitness for the next climb.