Stalled TPP 'biggest concern' in growing tide of trade protectionism, Key says

Monday 26th September 2016

Failure to ratify the Trans-Pacific Partnership could trigger a growing tide of protectionist trade policies around the world, Prime Minister John Key has warned.

Key mounted the case in favour of free trade during his trip to the United Nations in New York last week, and today told reporters at his post-Cabinet press conference that TPP is his "biggest concern" because of the signal it might send if it fails to get over the line. He said he was "uncertain but hopeful" that US President Barack Obama will be able to get the House of Representatives to support it, but it will largely depend on the outcome of the presidential election and how close the result is.

The rhetoric from US presidential nominees "represent a step backwards in terms of free trade because neither of them is advocating for TPP, and in varying degrees, they're arguing to put up barriers of protection and our concern is if that happens, we'll see more of that in other countries around the world," Key said. "Our biggest concern at the moment is what will happen to the TPP, only because of the signal it sends."

Government figures today showed New Zealand's exports climbed 17 percent in the year ended Aug. 31 to $48.8 billion since 2008, when the country signed a free trade agreement with China, outpacing a 13 percent increase in imports over the same period to $51.93 billion.

The TPP trade and investment pact between New Zealand, the US, Japan, Canada, Mexico, Chile, Peru, Australia, Malaysia, Vietnam, Singapore, and Brunei would eclipse that deal, covering 36 percent of the world’s gross domestic product and 40 percent of New Zealand’s exports. However, its far-ranging influence into policy formation and investor-state dispute mechanisms have been criticised as undermining nations' sovereignty.

Key said the growing support for protectionism was generally discussed during his bilateral meetings in the US, especially with other TPP nations.

However, Key said there was "good progress" in pursuing trade liberalisation with the European Union and Saudi Arabia.

BusinessDesk.co.nz

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