Winston Peters' plan to reopen trade talks with Russia called 'puzzling'
Saturday, 4 November 2017
Foreign Affairs Minister Winston Peters wants to revive trade negotiations with Russia, but a foreign policy trade expert is calling the move puzzling.
New Zealand came close to finalising a free trade agreement with Russia, Belarus and Kazakhstan before the Crimean and Ukraine crises put negotiations on hold in 2014.
Reopening trade negotiations with the three countries was in the coalition agreement between Labour and New Zealand First.
Otago University international relations expert professor Robert Patman said proposing to revive trade talks undermined New Zealand's economic, political and national interests, because the conditions that led to sanctions against Russia had not changed.
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'It would be a bad look for a country that sees itself as a good international citizen,' Patman said.
'As a small country we have a big vested interest in upholding the rule of law. We're not big enough to throw our weight around.'
On Tuesday, European Union (EU) ambassador Bernard Savage opposed Peters' plans to trade with Russia, in a non-public meeting. Council of Trade Unions' (CTU) spokesman Sam Huggard and director Bill Rosenberg attended the briefing and confirmed this.
Patman said if New Zealand wanted a lucrative free trade agreement with the European Union, it needed to think carefully about pursuing a free trade deal with Vladimir Putin's authoritarian regime.
'New Zealand has been banging on the doors of the EU for a free trade agreement, and that is coming into sight - and then suddenly we decide to reactivate a free trade agreement which was suspended because of the behaviour of the Putin government in Ukraine. It looks a bit odd.'
Rosenberg said trade with the three countries was a 'significant concern' because of their 'awful' labour standards.
Earlier this year, Peters told Stuff that New Zealand should be trading more with Russia, which was the world's number two dairy importer and was set to become the world's number two beef importer.
In 2016, Russia imported $24.6 million worth of New Zealand red meat, the majority of it beef livers ($9.5m), chilled beef ($1.9m), beef hearts ($1.6m) and frozen beef ($1.4m).
Former ambassador to Russia Stuart Prior said while a free trade agreement would be the end of a lengthy process, the conversations between the countries needed to be had for New Zealand to open up to new business opportunities.
'Closing one's eyes to Russia and its neighbouring countries is the equivalent to closing one's eyes to Britain's empire a century ago.'
With China making inroads in Kazakistan through its one belt, one road trade approach, using the new trade routes would also open New Zealand up to new opportunities, Prior said.
'It's a very sensible thing to put on the table and get people thinking hard about how New Zealand wants to position itself in taking advantage of these globalised activities.'