18 /3
/2002
New
Zealand has told Hong Kong that it cannot accept a trade agreement with
unenforceable rules of origin, Trade Negotiations Minister Jim Sutton said
today.
Mr Sutton met Hong Kong Trade Secretary Brian Chau on Friday night (New Zealand
time) while in transit in Hong Kong returning from a trade mission in China.
Mr Sutton briefed Cabinet colleagues on the discussion this morning.
“I put it to the Hong Kong minister that New Zealand could not agree to rules
of origin that were not enforceable. This means that final stage of manufacture
would have to be carried out in Hong Kong and exported directly to New Zealand.
Alternatively, final stage processes could be carried out in New Zealand.
“Mr Chau clearly understands New Zealand’s position and will be consulting with
his industry that wish to have some minor finishing processes carried out in a
third country.”
Mr Sutton said the Hong Kong government would now have to consider its position.
There is no set timeframe for that.
He emphasized that it had always been the Government’s policy that it would
only sign trade agreements that benefited New Zealand citizens. If there was no
benefit, there was no point in having an agreement.
“New Zealand industry – particularly the textiles, clothing, and footwear
industry – have been closely involved in formulating the New Zealand position
in these negotiations. Foreign Affairs and Trade Ministry staff have worked
hard to ensure there has been proper consultation with interested people and
organizations.”
Mr Sutton said that he believed that agreement on other aspects of the proposed
Closer Economic Partnership agreement were achievable, provided that the rules
of origin issue could be resolved.