The US has just announced that it will join New Zealand, Singapore, Chila and Brunei in negotiations on financial services and investment. It will also study the possibility of becoming a full partner to the Trans-Pacific Strategic Economic Partnership. This is great news, and must be seen as another major achievement for Trade Minister Phil Goff.
This is the bit of the statement that interests us most:
As it begins investment and financial services negotiations with the P-4 countries, the United
States will also begin a detailed exploratory process to determine whether it should participate in the full Trans-Pacific Strategic Economic Partnership. The Administration will hold consultations on this proposal with Congress and a wide array of stakeholders over the coming months. Participation could provide a pathway to broader Asia-Pacific regional economic integration with like-minded countries committed to high-standard agreements. The United States is already pursuing further regional economic integration in the Asia Pacific Economic Cooperation forum (APEC) through intensive exploration of the prospect of a Free Trade Area of the Asia- Pacific (FTAAP), as well as through bilateral FTAs, such at the pending agreement with South Korea.
As the US already has FTAs with Chile and Singapore, this is really about New Zealand.
Aside from the potential for New Zealand to get back on a level footing with Australia in the US market, this initiative could reinvigorate the APEC process, and cause some concern for those not from APEC in the WTO, where negotiations are not going anywhere fast.
Well done Phil Goff and your MFAT support team - David Walker in particular.
