US embassy cable - 05WELLINGTON375

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