Posted on 10-3-2002

Free Trade Chimera Exposed
By US Government
by Alan Marston

Politics and hypocrisy are close travelling companions. Yet again it is the
issue of so-called `free trade' that exposes this historical fact - the US
Government has unilaterally put in tariffs up to 30% on steel imports,
including NZ steel's exports.

North Americans were on the receiving end of `free trade' when they were
too weak to do anything about it, then came the flexing of muscle at the
Boston Tea Party and ever since the USA has been dishing out the `swallow
it and smile' policy to everyone else. Helen Clark is an experienced
politician and hence adept at the smile between clenched teeth and the
forced laugh and it appears certain she will be using this dubious skill
next week when she visits the USA in her capacity as PM of New Zealand.
Clark's and the Labour Government's vain hopes of a quick start to
free-trade talks with the United States have been brought down to earth by
US President George W. Bush's shot across the bow, bringing into the open
what is the reality of trade, war by other means.

When Helen Clark met Bush briefly at the Apec summit in Shanghai last
October, she was effusive about making progress on a free-trade deal with
Washington, saying New Zealand wanted to be the "first cab off the rank".
That looked good for domestic consumption. Bush went along with the game.
The comments from Helen Clarke have changed in tone and content. "The
signals would be that with congressional elections this year, it isn't the
year for any fresh talks to be started by the US Administration," she said.
"It is not going to be easy getting an open-trade agreement with the US,"
she said. "There are very strong protectionist interests in the United
States. If those interests are prepared to take on the EU and Japan, then
New Zealand, Australia, Chile and Singapore ... we are small beans."

The u-turn on trade deals is good, if forced. But the add-on about our
status not only as has beans, but small ones at that is insulting and weak.
Helen Clark said she would tell Mr Bush that New Zealand was "ready when
they are" to begin talks on free trade. I.e., we stand, cap in hand for
some more beans if the US so pleases.

Europeans are not so prone to bend the knee. World steel makers, led by the
European Union, have vowed to fight the steel tariffs. "The world steel
market is not the Wild West where everyone can do as he pleases," said EU
trade commissioner Pascal Lamy as he announced the filing of an immediate
formal complaint with the World Trade Organisation. The EU produces more
than 25 per cent of American imports of flat and tin mill products, on
which a 30 per cent tariff will be applied from March 20. It is also
worried that steel blocked from entering the United States might then land
on its shores.

More than 30 steel firms have fallen into bankruptcy since 1997. That is a
good reason for not having free trade. The US Government is doing what it
should, defend the US economy ... against free trade, and so should New
Zealand Government be doing the same.

Helen, please do copy the US, copy their absolute and unequivocal defense
of their own economy. New Zealanders having been waiting for 25 years for a
NZ Government to defend us AGAINST free trade where it is not in our
interests. Praise George W in the highest manner, by copying him.