Key pushes for free trade with US

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Prime Minister John Key has pushed New Zealand's free trade agenda during an hour-long meeting in Singapore with United States Treasury secretary Timothy Geithner.

The meeting was something of a consolation for Mr Key who has missed out on a formal meeting with the United States president after Barak Obama cut short his visit to the 21-nation Asia-Pacific Economic Cooperation forum meeting this weekend.

However Mr Key was yesterday confident of having at least a few words with the president during the leaders' meeting over the weekend. He said free trade would be top of his agenda in any discussion with Mr Obama.

But he conceded that was not the top priority for the US, with health and climate change policy dominating Washington's agenda. He said his talks with Mr Geithner ranged over trade, climate change, banking regulation and the US economy.

"He is a little fearful of unemployment, which is already at 10.2 per cent and he indicated it would go higher .. . before it recovers."

NZ's unemployment is expected to peak at about 7 per cent. The two also discussed the phase-down of the US economic stimulus package, as Asian leaders ahead of the meeting this weekend cautioned against undermining the recovery by withdrawing Government pump-priming too quickly.

Mr Key said he had set out NZ s view on free trade and it was accepted as “coherent economic logic" though no timetable for progress had been set.

“Over time they are cautiously optimistic … but … I can't tell you whether that will be in 48 hours or 48 months but there is an acceptance and a willingness to see progress on trade."

But he could not say whether there would be progress on the existing Trans Pacific Partnership free trade pact, linking the US with New Zealand, Chile, Singapore and Brunei.

NZ had made good progress on free trade in Asia, with an announcement expected today during talks with Hong Kong. But Mr Key rejected the suggestion New Zealand should turn away from the US and concentrate on Asia, because the US economy was the biggest in the world and an important engine of global growth.

NZ saw Asia as the powerhouse of growth over the next 20 years. “But you can't ignore America."

Mr Key, a former currency trader, will address a summit of chief executives in Singapore today.

He said he would advise Asian countries not to be too concerned if their currencies rise in value against the US dollar because that could help boost US exports and lead to stronger demand for the region's goods.

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Robbed!   #2   11:20 am Nov 13 2009

Never mind free trade John Key, lets hope the Americans lam blast you and the NZ government for abating Tier 2 pensions us Kiwis have paid for overseas before receipt of Tier 1 (benefit)NZ Superannuation. Even Peter Hughes C.E.O of Social and Development (on about $539,000 a year and does nothing)admits this happens. America will not pay its government pensions to those who have paid for them and retire here in NZ because of this injustice! It is said a free trade agreement and this appalling issue are both linked.

Ian McKinnon   #1   08:02 am Nov 13 2009

Why is it that most political writers refer to the PM as Key. It is disrespectful and rude. When Clark was in power it was referrred to as PM, and Goff very rarely is referred to by his surname. Goes to show the political bias of the Fairfax Media Group. It is the same in Australia.

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