United States and New Zealand: Will "Free Trade" Break Out?
December 27, 2004
The US and New Zealand have fostered a close relationship through shared democratic
ideals and values. New Zealand has expressed interest in furthering the relationship
by negotiating an FTA with the U.S. New Zealand exports a total of $2,492.3
million in goods to the US, mostly in beef, dairy products, wood, lamb, fish,
machinery and parts. In return, New Zealand imports $ 2,321.1 million in goods
from the US primarily machinery, aircraft, computers, electrical appliances,
and motor vehicles.
So what would a free trade agreement do for American consumers? If special
interest groups get their way, very little. The truth is FTAs benefit exporters,
not importers or consumers. When our government negotiated the US-Australia
Free Trade Agreement, the U.S. sugar lobby succeeded in keeping sugar off
the negotiating table altogether, a move that made a mockery of the words
"free trade agreement." The dairy lobby managed to keep dairy imports
down to a level that was insignificant, thereby protecting its own market
share. Agricultural commodities are highly protected in the United States,
and like many countries, New Zealand exports mostly agricultural products.
Free trade agreements should equally benefit consumers by reducing
or eliminating domestic barriers to imports. Free trade is a two-way street.
Why would any of our trade partners agree to lower their barriers if we don't
agree to do the same? What's in it for them if we don't? In the case of New
Zealand, we might see a drop in the price of beef, lamb, fish and dairy products,
but only if the domestic lobby for each of these commodities does not block
efforts to liberalize our domestic market. Foreign competition puts downward
pressure on prices and provides the wide selection of goods that enables us
Americans to enjoy a high standard of living. It is high time our government
stopped pandering to special interests and thought about us consumers for
a change!!!