News Review Special Edition

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International Developments, October 1 - November 15, 2002

New Zealand Resists US Linkage on Nuclear, Trade Issues

In a radio interview on October 6, New Zealand's Finance Minister and Deputy Prime Minister Michael Cullen stated that, during a visit to Washington the previous week, US officials had described Wellington's long-standing policy of barring nuclear-powered or -armed ships from its ports as a "hindrance" to negotiations on a free trade agreement between the two countries. According to Cullen: "Certainly they said that should we change our mind, that might assist us in getting a deal, but there was no suggestion that a deal wouldn't occur unless we changed our policy." Noting that drawing such a linkage was a departure from the policy of previous administrations, Cullen added: "I don't think it's in the United States' interests to see trade policy being used as a means...to exert pressure for strategic purposes."

On October 7, New Zealand's Trade Negotiations Minister Jim Sutton expressed concern that the new US approach may "generate a big wave of anti-Americanism out there in the public, and that's something none of us need." The same day, Prime Minister Helen Clark left no room for doubt on her position: "If anyone thinks that New Zealand changing its nuclear policy would lead to a free trade agreement, I am afraid they are very naïve." Clark described New Zealand as "a small, independent-minded country that takes these issues seriously," adding that "I am not about to throw it all away".

On November 17, the centre right ACT (Association of Consumers and Taxpayers) party, the main opposition to the Labour Government, announced it would introduce legislation to amend the anti-nuclear law. According to ACT leader Richard Prebble: "ACT will introduce a private members' bill to allow nuclear-powered warships, without nuclear weapons, to visit New Zealand." Noting that the United States and Australia seemed on course to move towards a free trade arrangement next year, Prebble was candid about his party's motivation: "Michael Cullen...publicly admitted a few weeks ago that New Zealand's ban on nuclear-powered shipping was the obstacle to achieving a free trade agreement... The Australians have warned us repeatedly that our irrational position on nuclear ships would result in economic disaster... [Australian officials have told our government that we] will never get a free trade agreement with the US until we amend the ban..."

Reports: New Zealand government says US trade pressure won't end anti-nuclear policy, Associated Press, October 6; Anti-American backlash possible over linking of trade and anti-nuclear policies - Minister, Associated Press, October 7; New Zealand opposition party to propose change to nuclear-free law, Dow Jones, November 17; Government rules out scrapping anti-nuclear policy, Associated Press, November 17.

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