Obama cans FTA; Key deeply disappointed

In a shock move the United States has halted free trade talks with New Zealand, Prime Minister John Key has confirmed.

President Barack Obama has suspended talks on what was known as the Trans Pacific Partnership.

Mr Key told reporters in Auckland that he had just learnt of the suspension.

"New Zealand is deeply disappointed that at this point the US Administration are not continuing talks in relation to a free trade agreement," Mr Key said.

The US move was in the context of taking a "stock take" by the new US administration.

"It's a disappointment but it needs to be put in context that it has been postponed not cancelled."

He said free trade agreement negotiations with India and South Korea were still underway.

- © Fairfax NZ News