21 DECEMBER 2010: Australian fair-trade activism network AFTINET has neatly extracted and summarised the Australian Productivity Commission's findings on the shortcomings of current free-trade agreements (for reading here), while the findings have raised waves in neighbouring New Zealand.
Dr Russel Norman, co-leader of the Greens, says that the compounded effect of the recent Wikileaks showing official doubt of the benefits to NZ of any negotiated agreement and the APC report show that both the current National government and the preceding Labour government have 'over-hyped' their free-trade acheivements and back the Greens' previous stance that the TPP should contain no investor-state dispute provisions.
Speaking to Radio New Zealand's Morning Report about Norman's comments, Trade Minister Tim Groser said the Australian body's report was of no relevance to New Zealand, although he admitted that analyses of some previous FTAs, such as NZ-Singapore, would have shown fewer economic benefits.
He also defended the notion of having investor remedies against governments in trade partnerships:
TG: "A lot of New Zealand investors are always worried about...if we put our money into China, or...India. or into Brazil, what protections have we got around arbitrary law changes?...Investor disputes are very important to New Zealand...we have what we call in trade negotiations an offensive interest."
"I think it's perfectly plain that all New Zealand needs to know is that New Zealand has suffered from an inability to crack open markets, and any trade agreement that moves us in the right direction is worth doing, and frankly, whether it's a benefit of half a billion, or three-quarters of a billion, doesn't alter my judgment on that underlying issue one bit."