NZ shies away from US-WTO row

Trying to defend its interests in the steel and aluminium issue, NZ yet to take position on WTO response

Tpolitics rade Minister David Parker says New Zealand won’t be moving quickly to join any World Trade Organisation (WTO) dispute against the United States on its tariffs against new steel and aluminium imports because too much is still uncertain.

Even those countries which have exemptions from the 25 per cent tariff on steel and 10 per cent on aluminium, including Australia and the European Union, have been told those exemptions may be temporary until May 1 and may be conditional.

“We don’t know what the outcome is in the position in respect of steel and aluminium for New Zealand or for other countries. It is still a moving feast,” Parker told the Herald.

President Donald Trump last week signed off the tariffs ordered under the auspices of a “national security” justification, and the exemptions.

New Zealand Prime Minister Jacinda Ardern has written to Trump seeking an exemption for New Zealand’s small but important $60 million market export to the US and Parker has written to his counterpart, Robert Lighthizer.

The US position has been complicated by notice of an 301 inquiry under the US Trade Act against trade David Parker, Trade Minister practices by China, under which retaliatory action can be taken.

Part of that controversy is that the US is using an outdated law (used frequently by Lighthizer under the Regan Administration) instead of using the disputes rules under the WTO, which only came into force in the 1990s. The WTO believes its support is needed before invoking 301 retaliation.

“We don’t know where the 301 inquiry in respect of other issues which came out on Friday is going to end, either,” said Parker.

New Zealand’s representative took part in a debate at the WTO at the weekend, expressing concern at the US’ moves toward protectionism.

It was one of 19 countries that spoke and the other nations included Japan, Brazil, Japan, China, Russia, South Korea, Singapore, and India.

Parker said he had been broadly briefed but not on what New Zealand had said at the WTO debate.

“We are being careful in saying that we believe in the importance of the WTO but we are taking a position as to what we might do in the future because it depends what happens,” Parker said.

“We reinforce our belief in the multilateral rules. We are obviously trying to defend New Zealand’s interests in respect of the steel and aluminium issue, and in respect of broader issues as to whether there should be a WTO response we haven’t yet take a position on that and probably won’t for some time.

“We don’t really know where this ends yet, even in the short term ... it seems to change every few days.”