The US decision to slap a 30 per cent tariff on steel imports has effectively killed off any chance of a free trade agreement between New Zealand and US, Green Party Co-leader Rod Donald said today.

"Clearly, Bush is more interested in protecting the profit margins of American corporations and the jobs of American steelworkers than in turning free trade rhetoric into reality.

"It should come as no surprise that America manages international trade in what it sees as the best interests of its own people," said Rod Donald. "While we don't always agree with the unilateral actions it takes, we should learn the lesson that the free trade nirvana that our own government espouses is a mirage."

Mr Donald said Helen Clark should strike free trade off the agenda when she meets Mr Bush later this month.

"Free trade - whether the one-way deal with Singapore, the crisis hit negotiations with Hong Kong or the now-defunct US deal - is a chimera. And like that creature, should be put back in the book of myths and legends."

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