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They claim that this FTA will give Australia a big advantage when selling hi-tech products or services into the US market -- and they could be right.

Perhaps the biggest bonus will be the ready access to lucrative US government tenders and contracts, something that NZ companies will find difficult, if not impossible, to secure.

When I was in the USA last year negotiating the sale of my XJet engine, it was made very clear to me just how important it is that suppliers to the US government be either based in the US or a country with which they have an FTA.

While New Zealand may be a great tourist destination, and held in high regard by many Americans, thanks to its "clean green" environment and the wonderful impression created by Lord of the Rings -- it seems that such things carry little weight when Uncle Sam opens his wallet.

Of far more importance is our anti-nuke policy and our less than total embracing of the recent military offensive against Iraq.

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Now I'm not for one minute going to get involved in the debate as to whether we should maintain our nuclear-free status or whether we should have sent combat troops to Iraq -- but the bottom line is that Aussie companies now have a significant edge when dealing with our second largest trading partner.

But will this, as those woe-sayers predict, result in overseas investors bypassing New Zealand and funding Australian-based ventures instead?

I believe it will -- but perhaps nowhere to the extent that has been suggested.

Let's face it, apart from the occasional chance to buy a photo-op, the NZ government hasn't really bent over backwards to encourage overseas companies from setting up shop here.

Motorola, Microsoft, IBM and a raft of other hi-tech players have all looked at setting up a presence in the region -- and chosen Australia over New Zealand every time.

The problem is that New Zealand doesn't offer the same degree of tax or other incentives as Australia so, from a purely financial perspective, we're already disadvantaged. What's more, the recent massive rise in the value of the NZ dollar means that what little advantage we might have had over Australia has been significantly eroded.

I expect that those overseas investors who chose to bet on Kiwi companies do so for reasons other than those that will be affected by the FTA.

However, having said that, we may find that we lose a few more of our best and brightest to the other side of the ditch.

Perhaps the lure of a better standard of living, better weather (will our summer ever return?), better access to key markets, a more favourable R&D taxation regime and reduced racial tensions will be too much for many of those on who we are reliant to build NZ's knowledge economy.

Of course I'm simply speculating here so I'd very much like to hear from you -- the members of NZ's hi-tech industries. Have recent events here in NZ given you cause to reconsider where you live and work? Is Australia looking like a more attractive proposition these days?

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