5. MARTIN GALLAGHER (Labour—Hamilton West) Link to this
to the Minister of Trade
What progress is being made towards a free-trade agreement with the United States?
Hon ANNETTE KING (Acting Minister of Trade) Link to this
Excellent progress is being made. Today the United States announced its decision to enter into comprehensive free-trade agreement negotiations to become a full partner of the Trans-Pacific Strategic Economic Partnership Agreement, or P4 group, consisting of Chile, Singapore, Brunei, and New Zealand. Today’s announcement is of huge significance and benefit for New Zealand. To have this commitment from the United States, in the same year as we have also concluded free-trade agreements with China and the ASEAN economies, is a great achievement and opens up the prospect of significant and sustained benefits to New Zealand businesses, employment, and the economy in general.
What would be the value of a free-trade agreement between the P4 group and the United States for New Zealand?
It would be considerable. The United States is New Zealand’s second-largest individual trading partner and second-largest export market. New Zealand’s total trade with the United States in the year to June 2008 was worth $8.14 billion, accounting for 9.6 percent of New Zealand’s total trade. With the involvement of the United States, the P4 group is now poised to expand rapidly to encompass other countries in the Asia-Pacific region, and to lead to greater economic integration in the region.
Dr Russel NormanWill the Minister publicly guarantee that he will not sign any trade deal with the United States that undermines Pharmac’s role as a monopoly purchaser of pharmaceuticals on behalf of all New Zealanders—yes or no?
As with all our free-trade agreements, in order for New Zealand to be able to agree to any outcome the agreement overall must be able to pass the test of being in our national interest. Those issues will be discussed and we will look at our national interest.
What response to the announcement of these free-trade agreement negotiations has the Minister seen from industry and producer groups?
I have seen statements welcoming the significant benefits that will flow from the proposed free-trade agreement for many key sector groups, including Export New Zealand, Federated Farmers, the Employers and Manufacturers Association (Northern), and Business New Zealand. I have seen comments such as “would deliver a fantastic boost to exporters’ confidence …”, “the potential for New Zealand in this is immense.”, “a Free Trade Agreement with the world’s largest economy is something to be savoured.”, “The government is to be loudly congratulated for getting the US to the negotiating table on this issue. … it would be the most important trade development for New Zealand since the CER deal with Australia in 1983.”, and “the trade policy hat-trick announced this year—the China, ASEAN and now a potential US FTA—holds open the hope of significant growth in the future.”
Given the Minister’s previous answer, where she refused to publicly guarantee to protect Pharmac, will the Minister publicly guarantee not to loosen the current rules around genetic engineering as part of a trade deal with the United States—yes or no?