Business leaders are welcoming news the controversial Trans-Pacific Partnership (TPP) trade deal has taken a major step forward in the United States.
Legislation vital to securing the largest US trade deal in decades was passed by the US Senate by a comfortable margin, advancing President Barack Obama's efforts to strengthen US economic ties around the Pacific Rim.
BusinessNZ chief executive Phil O'Reilly said getting good terms for dairy access would be a challenge, as some participating countries had dairy producers with significant domestic political power who did not want to compete against New Zealand's efficient dairy farmers.
''But New Zealand's negotiators are world-class and are focused not only on the big items like dairy, but also on the wider benefits from TPP.''
Getting more connected to huge markets in the pivotal Pacific arena would be a huge economic benefit for New Zealand.
The New Zealand business community would be staunchly supportive of the negotiators as they sought a good outcome for the country, he said.
ExportNZ executive director Catherine Beard said the successful conclusion of a deal would encourage more investment in export business and benefit the New Zealand economy.
But she warned the US move did not necessarily mean an agreement would succeed.
It meant negotiations would now start in earnest on the issues that had so far been hardest to agree, including those of market access for New Zealand's dairy products, she said.
The TPP, potentially a legacy-defining achievement for Mr Obama, would be the largest free-trade agreement in a generation and rank with the North American Free Trade Agreement (Nafta) which liberalised trade between the US, Canada and Mexico, while also serving as a counter to the growing power of China.
To complete the deal, ministers of the various countries involved still have difficult issues to resolve, ranging from monopoly periods for next-generation medicines to the treatment of state-owned enterprises.
In New Zealand, the future of drug agency Pharmac is causing the most angst among opponents to the deal.
Some countries, including Japan and Canada, wanted fast-track to be approved before making final offers on the trade deal, which would cover 40% of the world economy and raise annual global economic output by nearly $US300 billion ($NZ434 billion).
Negotiators say agreement on the TPP could be concluded within weeks once countries were sure Congress would not pick the deal apart, which fast-track would prevent.
The package approved by Congress included: fast-tracking negotiating authority, aid for workers who lose their jobs as a result of trade, an Africa trade preferences Bill and a customers enforcement measure.
Fast-track was forced back to the Senate floor after a revolt by Democrats in the House of Representatives resulted in it being split from the worker aid measure.
That Bill received unanimous approval and now would return to the House, where many Democrats who previously opposed the aid programme planned to support it.
For New Zealand, a TPP would open a door to a trade deal with the world's largest economy after 20 years of lobbying. American dairy farmers may be major losers if high tariffs are removed from dairy exports.
