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