Radio New Zealand

NZ to seek FTA talks with Arab countries

29 March 2006

New Zealand is to seek negotiations on a free trade agreement with a trade bloc of oil rich Arab nations, including Saudi Arabia.

The Gulf Co-operation Council raised the prospect of a deal with New Zealand during a recent visit to the Middle East by Trade Minister Phil Goff.

New Zealand’s exports to the six nation trade bloc total around $0.5 billion; while its imports, mainly oil, run close to $1b.

Mr Goff says he will take a proposal on an free trade agreement with the six countries to the Cabinet shortly.

He says none of the group produce goods that would threaten local industries; while exporters to the Arab markets would benefit as currently they have to pay tariffs.