Trade Minister Welcomes New Wto Financial Services Agreement

Trade Minister Lockwood Smith, who returned yesterday from an APEC-related visit to Malaysia, Thailand and Indonesia, has welcomed the World Trade Organisation (WTO) Agreement on Financial Services which enters into force today.

The agreement underlines the continued commitment of Governments to opening their banking and insurance markets to competition.

"The WTO Financial Services Agreement dove-tails nicely with our own work in APEC", said Dr Smith.

"As Chair of APEC 1999, one of New Zealand's policy themes is 'strengthening the functioning of markets'. The emphasis on strengthening markets is a key part of APEC's response to the Asian Economic Crisis, through promoting the development of robust financial markets.

"On my recent visit to South East Asian economies, I found strong support for market-led policies that will deliver strong, transparent and well-functioning markets. The WTO agreement will make a solid contribution to APEC's work in this area.

Dr Smith said that New Zealand also had much to gain from the new WTO agreement.

"Improved efficiency within the international financial system will bring important benefits, including reduced costs for doing business offshore. The WTO agreement locks in existing market access opportunities, which will provide greater security in the financial sector", said Dr Smith.

"Given the importance of financial services in underpinning economic activity, we can only stand to benefit from the efficiency gains that increased competition in this area can generate globally and in our region.

"With New Zealand's own competitive financial services sector already well established, we are in a good position to benefit from the deal without having to change any of our existing laws or regulations", Dr Smith said.