The importance of trade

Tim Groser.
Tim Groser.
Trade Minister Tim Groser has emerged from weekend talks in Australia confident progress has been made on the controversial Trans-Pacific Partnership, of which New Zealand is an active supporter.

The Trans-Pacific Partnership (TPP) is a proposed regional free-trade agreement. As of 2014, twelve countries throughout the Asia-Pacific region have participated in negotiations on the TPP: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

There have been some sticking points for New Zealand, with the latest being Mr Groser's concerns about this country's access for its dairy products.

The interests of the US are not the same as New Zealand's.

And reports emerged yesterday that Japan is now wanting to protect further some of its already highly protected agricultural industries in the negotiations.

Anyone from New Zealand having sought to trade in Japan knows already the labyrinth of bureaucracy needed to be negotiated before produce lands in the hands of Japanese householders.

Mr Groser has emphasised New Zealand is the largest dairy exporter in the world and its concerns could not be easily brushed aside.

While accepting the outer parameters of the trade agreement would be settled by Japan and the US, Mr Groser says it should not be finalised without New Zealand.

The finish line may be in sight, but that does not necessarily mean it will be crossed.

If any agreement does succeed, it may come together in the first quarter or half of next year.

Accepting the fact Mr Groser was an experienced trade negotiator - one of New Zealand's best - before entering Parliament as a list MP, it seems obvious now his TPP involvement is an audition for a high-powered global trade job by 2016.

As a list MP, he can leave Parliament without fuss whenever he chooses, or at the urging of Prime Minister John Key.

But there seem to be some serious questions which still need to be resolved; not the least the legacy the Government wants to leave on trade.

The TPP talks are kept highly secret and while Governments will have to ratify the agreements in public, the secrecy is concerning.

One of the major apprehensions of New Zealand critics is not dairy exports, but continued access to cheap medicine for Kiwis.

Pharmac negotiates the best deal it can on a global scale to provide drugs at the best cost possible.

The thought of US pharmaceutical giants deciding which drugs Pharmac can buy at what price horrifies many.

Mr Groser has always given assurances the state drug-buying agency is non-negotiable, despite a leak last year showing a gulf developing between the US and many of the other countries about contested areas of medicines, copyright and parallel importing.

Other concerns have been proven incorrect.

The threat of corporations being able to sue governments is overblown.

They can do that now.

But they will have no success if the government is acting in the public interest.

Raising new taxes, protecting the environment, or regulating for public health will not be an excuse to mount court action.

Trade is a hot button issue for New Zealand, but the country has made massive gains through existing free-trade agreements, particularly with China.

China is now New Zealand's largest trading partner and the FTA has opened doors for a potential deal with Korea.

And no-one can doubt the success of CER (Closer Economic Relations), the free-trade agreement with Australia.

New Zealand has agreed to join the World Trade Organisation Government Procurement Agreement, which will give New Zealanders equal rights when competing for government contract agreements worldwide.

The agreement covers the purchase of a range of products and services from the public sector.

Mr Groser is right to warn the US and Japan not to close the deal without ensuring benefits for Australia and New Zealand.

But will they listen? The Trade Minister is being increasingly optimistic and open on the TPP.

Certainly, much rests on his shoulders in getting this right.

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