Labour support trans-Pacific trade alliance

The Government is reported to be close to signing up for a trade deal with countries across the other side of the Pacific. And the Labour Party is supportive.

NZ Herald:  Labour says it will support a trade deal with Pacific Alliance

New Zealand is on the cusp of signing a significant free trade deal with Latin American and South American countries.

The Pacific Alliance, which is made up of Chile, Mexico, Colombia and Peru is expected to announce tomorrow morning whether it will enter formal negotiations on a new deal with New Zealand.

New Zealand would be the first country to secure a free trade agreement with the trading bloc, which is currently worth $1.1 billion in two-way trade.

Trade Minister Todd McClay is in Cali, Colombia, speaking to his counterparts from the four countries in a bid to get the negotiations underway.

Mexico and Chile were in the Trans-Pacific Partnership that has stalled now the US has withdrawn.

Unlike the TPP Labour are supporting this one:

The Labour Party said today it would support a Pacific Alliance agreement, which means any deal is likely to survive if the Government changes in September.

Foreign affairs spokesman David Parker said that like New Zealand, these four countries were looking towards Asia for trade.

“They are doing good things through that alliance to reduce trade barriers, which also affect New Zealand. So we are supportive of that.”

His party’s main concern was about any provisions which allowed investors from the alliance countries to buy land and houses in New Zealand.

Labour was also concerned about any investor-state dispute settlement provisions, which McClay confirmed would be a part of an FTA with the alliance.

Parker said Labour’s main focus if in power would be to advance a trade deal with the EU.

But a deal with the EU is likely to take quite a while.

An interesting stance by Labour – is it because the US is not a part of it?

New Zealand First leader Winston Peters was more sceptical about an FTA with the Latin American and South American countries, saying that growth in those regions had been stagnant for 30 years and that New Zealand should be dealing with bigger economies in the Americas like Brazil.

He did not necessarily oppose a deal with Pacific Alliance grouping, but said he would first want to be certain that the deal was not simply “hype and presentation” and that it was in New Zealand’s interests.

Very vague.

Todd McClay has been very busy since he took over Trade from Tim Groser at the end of 2015.

Leave a comment

4 Comments

  1. John Schmidt

     /  June 30, 2017

    Anti US sentiment is on display.

    Reply
  2. Blazer

     /  July 1, 2017

    unlike the TPPA..this is actually a TRADE agreement with benefits for all..involved.

    Reply

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