Global trade reform vital issue for N.Z.

Press, 24 September 1988, Page 18

Global trade reform vital issue for N.Z.

Political reporter The most vital external relations issue for New Zealand is reform of the global trading system and protectionism, according to the Minister of External Relations and Overseas Trade, Mr Moore. He told the Hutt Valley Chamber of Commerce that New Zealand’s position was one of enlightened self-interest. What it sought in trade reform through G.A.T.T. also reflected the great needs of the Third World. “It has been said that aid is frequently a tax on the poor in rich countries

that is given to the rich in poor countries,” Mr Moore said. The Third World countries needed access to the markets of the rich countries for their products and relief from the food mountains those rich countries produced. This was why they supported New Zealand’s position.

It was as true for a nation as it was for a local shopkeeper that the poverty of the potential customers was a limitation on affluent business, he said.

A recent study had shown that $1 to developing countries through

higher agricultural prices was equivalent to between $2.20 and $l4 in explicit foreign aid. New Zealand was working hard to make the current G.A.T.T. round succeed. Mr Moore predicted that it the round did not come up to expectations, New Zealand’s trading future would be more closely tied to the Pacific Basin. Options such as a closer trade relationship between Canada, Australia, the Pacific Islands and New Zealand would be kept under review.