The New Zealand signing of the Free Trade Agreement (FTA) with China has many positive spinoffs for exporters and others doing business with China. At its most basic level it means that I will pay less for products (hopefully other than the $2 shop) where tariffs have been lifted. While the battle rages over China's hold over Tibet and much media attention is being diverted toward high anxiety levels being expressed over the Olympic torch travels through Europe to the Beijing Olympics, there is another issue closer to home that has got me thinking.
How do the Pacific Island nation states feel about the FTA? The Pacific Islands have been slowly developing closer ties with China and other Asian nations and were poised to use it as a tactical ploy whenever any Pacific Island nation was dis-satisfied with their treatment from NZ and Australia. The FTA now sends out messages to the Pacific region that NZ's special relationship with China also means NZ may also have a heavier hand in Pacific affairs because it has a strong economic ally in China. It will be interesting to watch our astute Pacific neighbours respond to this new historic FTA relationship between NZ and China. Conversely should China now decide to take an abhorrent stance on a sensitive issue that may cause global concern - what will NZ do? - revoke the FTA under global pressure!! we don't know - these are all difficult scenarios that are open to imagination when dealing with a country that is silent on many issues.
Prime Minister Helen Clark has much to be proud of and NZ has much to gain from it.
