Policy Area: Exports and International Trade

Statement of General Direction:

To optimise New Zealand export returns, underpinning a positive partnership between the State and the private sector to achieve this. Government will continue to actively pursue the border liberalisation and other agreed positions taken in the Uruguay Round through the World Trade Organisation. In line with current policy, the 1998 Tariff Review will take place and any future progress in this regard will be consistent with the policies and progress of New Zealand's trading partners.

Key Initiatives of Policy:

The Parties will establish an Export Credit Guarantee Scheme and will immediately develop criteria for such a Scheme on the basis that the Coalition partners agree mutually on the criteria and implementation of same. Up to a $50 million per annum guarantee line is committed for a period of three years dependent on the favourable performance of the scheme, and within the overall spending parameters agreed to by the Parties to the agreement.

In view of the existence of the Government's Venture Capital (Greenstone) Fund agree to lift the Government's capital by taking up the $5 million rights issue (to be $30 million in effect).

Further funding of $2 million for the Technology Transfer Agency.

Boost Tradenz funding by $5 million.

The 1998 Tariff Review to proceed in line with current policy, taking into account the policies and progress of other trading partners.

Fiscal Implications of this Policy Agreement:

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

Not necessary but could be appr opriate for Export Credit Guarantee Scheme.