

The Government will, first, adopt the same overall approach to the initial offer that guides New Zealand throughout all aspects of the WTO negotiations, that of advancing the national interest. This means that New Zealand will be guided by the overriding objective of securing tangible overall benefit. As such we will adopt a hard-nose negotiating approach. We will not be pursuing any unilateralist negotiating agenda but seeking reciprocal benefit.
Second, New Zealand is strongly committed to advancing improved terms and conditions for our services exporters. We will accord priority to achieving advances in sectors where our export interests are strongest and where we can enhance the services sector's contribution to growth and innovation. New Zealand's approach to its initial offer will take into account the need to advance those particular interests effectively.
Third, the initial offer will be essentially conditional and revocable. That is to say, where the government may decide to propose commitments, these will be "initial" not only in the sense of their timing in the process, but also in terms of substance. New Zealand will reserve the right to modify or withdraw them in light of the subsequent developments in negotiations, particularly in light of the responsiveness of our trading partners to our requests both in the services sector itself and in light of the overall development of negotiations.
Fourth, the government does not intend to make any initial offers to change actual current policy settings (including for local government), and would be well within them. In other words, whatever decision is ultimately made as to the coverage of New Zealand's initial offer, at most we would be offering to commit to, on a conditional basis, settings that reflect our settled policy in certain areas. There is sufficient negotiating coin in this respect.
Fifth, the government will continue to ensure that the initial offer will in no way override our present GATS reservation regarding the treatment of Maori persons or organisations.
Sixth, the government will make no initial offer that would limit the government's right to provide, fund or regulate public services, such as health or education.
Seventh, the government will make no initial offer involving privatisation of public services or of public entities, or which would affect Kiwi Share arrangements.
Eighth, New Zealand's initial offer will not require a lowering of any of New Zealand's quality standards in any area.
Ninth, an initial offer will not involve any change to New Zealand's immigration regime.
Tenth, New Zealand's initial offer will take full account of the actual state of negotiations, particularly in light of the responsiveness of our trading partners to New Zealand's own interests. This will, among other things, mean that we take into account the fact that this will be the first step in a process that is set to run until 2005. It will also mean that the government will judge where to pitch New Zealand's offer taking into account what others are doing overall in the negotiations.