Brussels, 21/03/2011 (Agence Europe) - EU Trade Commissioner Karel De Gucht says that negotiations on an EU-New Zealand free trade agreement are “premature” and wants first to conclude the Doha Round.
“EU-New Zealand trade talks 'premature'” was the headline of the New Zealand Herald after De Gucht's visit to the country - in Christchurch on 19 March for the commemorative ceremony for those who lost their lives in the recent earthquake, then in Auckland on 20 for talks with the New Zealand authorities, on the third stage of his Pacific odyssey. De Gucht somewhat cooled the enthusiasm of his hosts, who included New Zealand Prime Minister Tim Groser, who, on 17 March, expressed his country's desire to strengthen bilateral ties with the EU, its second largest trading partner with bilateral commerce worth €12 billion per year.
“We would like to discuss a framework agreement, with much more structuring of contacts, but a free-trade agreement including market access and tariffs would be premature, for two reasons. First, let's see what the Doha Round gives, because this would be a discussion, I believe, among other things, about agriculture. And secondly, we have engaged with several big trading partners and we cannot do it all at the same time”, De Gucht said after a meeting with Groser on 20 March. “It would really hurt the Word Trade Organisation if, after 10 years, you had to conclude that no solution was possible. We will do everything possible to get there”, De Gucht added, indicating his preference for a multilateral agreement in which New Zealand has a role to play in agriculture before going down the bilateral route with Wellington.
Groser said the Doha talks were “just going around in circles”. “But no one will take the risk politically of killing it off. And sooner or later some political set of events will come together to move it forward. That is more likely than complete and irrevocable collapse”, he added. “We have a productive and fairly comfortable relationship with the EU, now that they have engaged in a series of reforms of the common agricultural policy. There are no burning issues we need to resolve. On most issues, we and the EU share similar perspectives”, he said, pointing out that the trade relationship with Europe was now much less fraught than it had been after the United Kingdom joined the Common Market in 1973. (E.H./transl.rt)