US TPP Announcement Significant for NZ Trade

Media Release – 14 November 2009

US TPP Announcement Significant for NZ and Asia Pacific Trade

The NZ US Council today welcomed confirmation that the US would engage with the Trans-Pacific Strategic Economic Partnership Agreement (TPP) with the aim of commencing negotiations to join TPP.

“This decision by the Obama Administration reflects the value that the United States sees as being fully part of moves toward freer and more open trade in the Asia Pacific region”, said  NZUS Council Executive Director, Stephen Jacobi.

Today’s announcement in Tokyo by President Obama and in Singapore by US Trade Representative Ron Kirk will see existing TPP partners – Chile, Singapore, New Zealand and Brunei – negotiate with the United States, Australia and Peru for an expanded trade partnership.  Viet Nam will observe the first three rounds of negotiations.  The first round of negotiations between this expanded group was deferred in March at the request of the US to allow the new Obama Administration to undertake a review of US trade policy.

 “This is very significant news for New Zealand and the wider Asia Pacific region”, said Mr Jacobi.  “US involvement in the TPP paves the way for freer trade between New Zealand and the US and offers substantial benefits to both countries as a vehicle for further trade liberalization within APEC.”

The NZUS Council has worked for many years towards a free trade agreement with the United States which remains New Zealand’s second largest trading partner and a significant source of inward investment, technology and innovation.

 “A trade agreement within the context of the TPP will help level the playing field with New Zealand’s competitors in the American market and lead to improved market access with higher returns.”

 For the United States, the TPP offers an existing high-quality and comprehensive trade agreement on which to build towards wider trade liberalisation in the Asia Pacific region.

 Mr Jacobi said the NZUS Council had focused considerable energy on the TPP since the US first signaled its interest in the negotiations last year with discussions around US involvement in TPP playing a key part in the third USNZ Partnership Forum held in Washington DC in October this year.

 “This announcement is just the beginning.  The Administration will have some processes to complete before actual negotiations can begin.  The negotiation itself will be complex. The NZUS Council looks forward to working with partners in government and the business sector to ensure the best possible outcome for New Zealand from these negotiations”.

of investment, innovation and business ideas. The NZ US Council worked with its Washington-based counterpart to organize the recent US NZ Partnership Forum held in Washington DC from 6 – 8 October 2009.

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