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Free trade deal with US could take years, says McClay

Author
Newstalk ZB staff,
Publish Date
Mon, 19 Jun 2017, 5:45AM
(Newspix).
(Newspix).

Free trade deal with US could take years, says McClay

Author
Newstalk ZB staff,
Publish Date
Mon, 19 Jun 2017, 5:45AM

New Zealand's Government's not expecting immediate progress on efforts to secure a free trade deal with the United States.

Following high level talks in Washington DC, US trade officials have signalled they're open to a FTA when the time is right.

Trade Minister Todd McClay expects any significant progress on reaching a deal is at least a couple of years away, pointing out the US already has a big trade agenda ahead.

"The renegotiation of NAFTA was huge, they also have indicated publicly that there are a number of countries they trade with where they have trade deficits which they want to address through FTAs - New Zealand's not one of those countries."

However an international relations expert is casting doubt on a free trade deal with the US. An associate professor at the University of Auckland, Stephen Hoadley, said the best we can hope for is better access.

"New Zealand will never get free and unfettered access into the United States market - this is an unrealistic expectation - but it could get better access than it has now," he said.

"Access to the United States is not bad at the moment - it can be improved, whether it happens quickly or takes months or even years that's less able to be predicted."

The Leader of the Opposition says he is open to New Zealand cutting a free trade deal with the USA, if it fits our interests.

Labour Leader Andrew Little said if we can get the USA to the table on a free trade deal then we should do so.

"In the end it always comes down to the quality of the agreement and the content of it," he said.

"We've got to make sure it's something that serves our needs and interests in terms of trade, but equally it doesn't compromise our right to make soveriegn decisions in our best interests."

Meanwhile in Europe, the appointment of a Kiwi to a top UK trade job is getting a thumbs up from our Government

Crawford Falconer, a former WTO Ambassador for New Zealand, has been named as the UK's chief advisor on trade talks - he's to lead the UK's negotiation of free trade deals with countries outside the European Union

Mr McClay said the appointment is good for New Zealand as Mr Crawford is a true free trader, and has been heavily involved in build up free trade architecture here.

"This is really positive that they've one, decided to get a Kiwi and two, have chosen him - I think it bodes very well for us," he said.

"I couldn't think of a better trade negotiator for them to have, except for my ones and they're not allowed them."

 

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