NEW ZEALAND: REVISED OFFER FOR WTO SERVICES

UNCLAS WELLINGTON 000375 SIPDIS STATE FOR EB/TPP/MTA-WHITTEN AND EAP/ANP-RAMSEY SENSITIVE E.O. 12356: N/A TAGS: ECON ETRD NZ WTO SUBJECT: NEW ZEALAND: REVISED OFFER FOR WTO SERVICES NEGOTIATIONS REF: STATE 81619 (U) Sensitive but unclassified -- please protect accordingly. ¶1. (SBU) Post delivered reftel demarche May 4 to the New Zealand Ministry of Foreign Affairs and Trade (MFAT). On May 9, Brian Wilson, senior negotiator for services and deputy director in MFAT's Trade Negotiations Division, reported to us that a proposed revised offer for the WTO services negotiations would be sent to Cabinet the week of May 16. Assuming that Cabinet agrees to the need for a revised offer and approves it, New Zealand would submit its offer by the May 31 deadline or -- more likely -- early in June. ¶2. (U) In response to the demarche, Wilson said that New Zealand agrees with the United States on the importance of meeting the May deadline for submitting revised services offers. ¶3. (SBU) Wilson added that New Zealand also is committed to actively participating in the services negotiations, believing it is in every WTO member's interest to participate. New Zealand negotiators have appreciated working with U.S. colleagues in Geneva, particularly Christine Bliss, the lead U.S. negotiator in the WTO services negotiations. ¶4. (SBU) However, New Zealand believes that, because it already has one of the most open services regimes in the world, it has little to offer in terms of additional market openings. Nonetheless, New Zealand will try to make additional market-opening commitments where it has the scope to do so. Wilson warned, however, that his government would not be able to meet the U.S. request to end its screening of foreign investments because of political sensitivities over foreign ownership of New Zealand's assets, especially its land. ¶5. (SBU) Commenting on the sectors in which the United States is seeking a robust revised offer, Wilson said: (A) Financial services - The sector is almost completely open in New Zealand, so it has little to offer. (B) Energy services - New Zealand has no commitments in this sector under the General Agreement in Trade and Services because of political sensitivities, and thus could not make an offer on this issue. (C) Telecommunications - Wilson contended that the sector already is open. (D) Distribution services - New Zealand could make some limited commitments, although agricultural exports are considered sensitive. (E) Express delivery services - New Zealand would be pleased to work with the United States to convince other members of the need for market openings in this sector. (F) Audiovisual services - New Zealand is fully committed to an open sector. (G) Computer-related services - New Zealand is fully committed to an open sector. (H) Environmental services - While New Zealand's offer probably will include environmental consultancies, it is hesitant to make an offer on delivery services because of local government concerns, including opposition in some cities to privatizing such services as trash pickup. SWINDELLS