PM John Key protests unacceptable Russian actions in Crimea; says signing FTA deal now inappropriate; Trade Minister Groser called home from Moscow

By Bernard Hickey

Prime Minister John Key has announced the Government has put free trade talks with Russia on hold in protest at its "unacceptable" military actions in the Crimean region of the Ukraine.

Key said the Free Trade Agreement (FTA) talks with Russia had been nearing completion, but he had decided to call home Trade Minister Tim Groser early from those talks in Moscow and to wait and see what further actions Russia took.

"I don't think it would be the right time to sign an FTA if there was one on the table today," Key told his weekly post-cabinet news conference.

Groser's travel schedule from Moscow had been fluid, but Key said he had actively decided to bring Groser home after taking advice from the Ministry of Foreign Affairs and Trade (MFAT).

New Zealand also planned to call in the Russian ambassador to New Zealand to express New Zealand's concern over Russia's actions, Key said.

Reaction

“New Zealand is deeply alarmed at the escalation of tensions in Ukraine over recent days and we condemn the breach of Ukraine’s sovereignty and territorial integrity," Foreign Minister Murray McCully said in a statement after the ambassador was called in.

“We understand Russia has significant interests especially in the Crimean Peninsula, however they need to pursue these interests in a manner that is consistent with Russia’s treaty obligations, international law and accepted international norms," McCully said.

“New Zealand calls on the Russian Government to take steps to reduce tensions and to engage in consultations with other affected parties to achieve this objective."

Labour Foreign Affairs Spokesman David Shearer said Labour supported the withdrawal of Groser from the FTA talks.

“New Zealand has always supported a system of international rules and laws that uphold a country's integrity and sovereignty. These are important principles that we stand by in this situation as we have done so in others," Shearer said.

China trip

Meanwhile, Key announced he would travel to China in two weeks time to meet both President Xi Jinping and Premier Li Keqiang in Beijing.

"The visit will focus on increasing agriculture and food safety cooperation, financial sector cooperation, as well as building on the strong bilateral trade, economic and political relationship," Key said.

"My visit provides an opportunity to brief China's leaders on the outcomes of the Government Inquiry into the Whey Protein Concentrate Contamination Incident.  I will be able to report to China's political leadership, and assure Chinese consumers, that the Inquiry delivered a strong endorsement of the New Zealand food safety system," he said.

He said New Zealand and China were on track to achieving the shared goal of doubling two-way trade to NZ$20 billion by 2015.  Two way trade rose 25% in 2013 to NZ$18.2 billion.

Key will also visit Hong Kong where he will hold high level meetings, undertake activities relating to his tourism portfolio and attend a Rugby Sevens New Zealand promotional event.

Key will then travel on to the third Nuclear Security Summit in The Hague, where he expects to meet some of the leaders of the other 52 countries attending the summit.

Key returns to New Zealand on March 28.

(Updated with China trip details, reaction from McCully and Shearer)