Trade, but at what cost?

Trade agreements have again become hot topics as the Trans-Pacific Partnership talks in Hawaii continue grinding along this week.

The talks were seen as the end of what has been a long, difficult and extremely secretive process - a process from which voters in the 12 countries participating have been excluded.

In New Zealand, the public has had to rely on assurances from Trade Minister Tim Groser and Prime Minister John Key that New Zealand's economy will only benefit from being part of TPP.

And, in part, both men are correct.

Becoming part of a trade agreement which covers 40% of global GDP is a prime target for New Zealand and one Mr Groser has long coveted.

Mr Groser was a skilled trade negotiator before entering Parliament and is likely to play a key role in the future, if as expected, he replaces the mercurial Mike Moore as New Zealand's ambassador to the United States.

It was always unlikely the US would allow Pacific Rim countries to negotiate a trade treaty without becoming involved in the process.

But it had been obvious to all observers the US is not happy about ceding any of its advantages and is working hard to ensure it is the major beneficiary of any agreement.

Canadian and Japanese dairy subsidies are a major sticking point for New Zealand and it has been rumoured a deal without Canada was possible if it failed to agree to phasing out of its prohibitive tariffs.

Now, it has emerged the dairy talks are not going the way New Zealand expected and the negotiators are feeling squeezed by the process.

Quelle surprise.

With dairy making up such a large part of New Zealand's exports, and the precipitous fall in prices recently as supply overtakes demand, this country cannot afford to fail in its quest to get unfettered access to prime North American markets, even if the reduction in tariffs takes longer than preferred.

There are other issues to consider.

The continuing access to cheaper generic drugs in New Zealand - even with the pressure of giant American drug manufacturers - was a promise made by the Government.

There would be no increased charges across the counter.

And while Mr Key retains that philosophy, he forgets any extra costs topped up by the Government have to come from somewhere: the taxpayer.

Mr Key finally admitted this week the costs to Pharmac may increase through the TPP.

Opposition politicians say any top-up for Pharmac must be new spending and not come from an already stretched health budget.

However, there is only so much money to go around and cuts will be made somewhere.

If the US patents are extended from the current eight years, drug costs in New Zealand for biologics - drugs which cater for areas such as cancer - will rise exponentially.

It is not scaremongering to say people may die because they cannot afford to pay the full price for their necessary drugs.

New Zealand's intellectual property and patent laws could also come under the influence of, for instance, large Hollywood film-makers who want to protect their product at any cost.

Internet service providers may be able to supply customers with a connection, but may also be required to monitor what their customers watch, restricting access to some sites.

The most difficult part of the equation is the intense secrecy attached to the negotiations.

Why have we been unable to see what is being proposed?

What is so important the 12 trade ministers, and their negotiators, need to keep the doors closed?

Disturbing bits of information have been leaked from the talks but there is no way of checking their authenticity.

National must rely on the two votes from United Future and Act to pass any future TPP legislation through Parliament.

The Maori Party, a Government partner, has received no assurances the Government has considered the full impact of the TPP on Treaty of Waitangi obligations.

It opposed the agreement.

There are mounting calls for the unsigned TPP to be given the scrutiny of Parliament, however unlikely that seems.

New Zealanders are being asked to support a major agreement which will affect future generations.

It is trade, but at what cost?

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