Progress on the Trans-Pacific free trade agreement could be stalled by domestic policy problems in the United States.
At a briefing for New Zealand journalists in Chicago last week, New Zealand Ministry of Foreign Affairs and Trade officials said while President Barack Obama was sympathetic and supportive of expanding trade, he was preoccupied with health reforms and stimulating the ailing US economy.
An official said the countries negotiating the Trans-Pacific Agreement (TPA), New Zealand, Singapore, Chile, Brunei, Peru, Vietnam and Australia, were all waiting for President Obama to make a statement on its future in the coming months.
Including the United States - the world's largest economy - was seen as the ultimate prize.
Trade with the US was worth $9 billion and it took 10% of New Zealand exports, while US imports represented 9% of all New Zealand imports.
The US saw Asia and the Pacific as the regions where the world economy would grow, but the TPA could also draw in other Asian countries which wanted to be included.
Dairy could prove a sticking point, as New Zealand was viewed by US dairy farmers as a major threat to their industry, but trade officials said the size of the TPA market could nullify those concerns.
Any free trade agreement would also need the support of the US Senate and Congress, which could also prove a stumbling block.
However, Trade Minister Tim Groser remains confident that the deal would be completed.
"The extension of the Trans-Pacific Partnership (TPP) to bring in the United States, Australia, Vietnam and Peru remains a realistic and exciting possibility.
"I understand the challenges faced by the US Administration at this time, and I remain confident the Administration will, in due course, confirm its intention to participate in the negotiation."
Neal Wallace travelled to the US as a guest of Fonterra.
