Japan to announce TPP intentions, conference told

UPDATE / 5.10pm: Japan's prime minister should confirm by the end of this month his country's intentions to join Asia-Pacific free trade talks, a Japanese business lobbyist says.

But a New Zealand dairy industry heavyweight warns against admitting countries like Japan and Canada to the talks until they give up their protectionist agricultural policies.

Today's NZ US Council conference in Auckland has been dominated by discussion over the Trans Pacific Partnership negotiations. The talks involve nine Asia-Pacific countries, including New Zealand and the United States, but Japan, Canada and Mexico have formally asked to join.

That's despite opposition from some Canadian and Japanese farmers, who fear a flood of cheap imports.

Hidehiro Okayama, general manager of Japan's chamber of commerce and industry, told the conference it is unfortunate Japanese Prime Minister Yoshihiko Noda did not affirm his country's intention to join the talks while visiting the United States this week.

However, such an announcement is imminent, he says.

"I can not specify the source of the information, but I heard the Prime Minister Noda has already made up his mind, he'll announce shortly, about the ... indication that Japan is to join the TPP negotiations. I think it will happen by the end of this month."

One of the 150 conference attendees uttered disbelief Japan would entertain such a liberal trade package, and asked what political support there was among the major parties.

Mr Okayama - whose chamber has 1.3 million members in 514 branches - responded that TPP supporters in parliament are increasing.

Dairy Companies Association chairman Malcolm Bailey, a Fonterra director, says New Zealand needs a high quality agreement which shouldn't be diluted by countries with pre-conditions.

"My message is, well you can't have your cake and eat it too."

Dairy will be problematic for trade negotiators, he says, so more time should be taken to ensure a better deal.

"It's far better to get to a clean position - for example, tariffs going to zero - than having a quick and dirty deal, by comparison, where we get tariffs halved."

Agriculture must be included in a free trade deal with the United States, Prime Minister John Key says.

He told today's New Zealand US Council's 10th anniversary conference that he hopes a TPP deal will be signed, or substantially completed, by September's Apec meeting.

But he warned it was "unacceptable" to have a deal that didn't include trade access for the country's dairy industry and other parts of the agricultural sector - even though US ambassador David Huebner says relations are "sizzling".

"In the end, we're not going to weaken future negotiations we have by signing up to something that is sub-standard," Mr Key said

He notes challenges for the nine other countries in the negotiations - including US concerns about intellectual property and Australia's bid to get sugar included in its free
trade agreement with the US - but remains bullish about progress.

"My view is that we will get there, but I can't tell you the timing."

Mr Key says New Zealand's relationship with the US is the best it has been in 25 years, something endorsed by Mr Huebner, who says it is "sizzling".

The ambassador gave his advice on trade negotiations to the one-day conference, pointedly saying that a focus on tariffs and subsidies dated back to an "18th- and 19th-century world, not a 21st century."

He says there needed to be robust protection and enforcement of intellectual property.

"A simple or easy trade deal is not the same as a gold standard economic infrastructure.

"One simply does not build a 21st-century economy by clinging tenaciously to the 19th century."

Earlier, Auckland mayor Len Brown says the TPP will boost US trade and investment in the city.

The NZ US Council was established to push for a free trade agreement between the countries.

The US is New Zealand's third-biggest trading partner.

Former prime minister Jim Bolger, the council's chair and a former ambassador to the US, says New Zealand's anti-nuclear policy taught both countries that dialogue should continue in tough times.

Chasm has opened, says negotiator

A "chasm" has opened between political ambitions for an Asian-Pacific free trade deal and the countries' negotiators, a United States business representative says.

US TPP Business Coalition president Cal Cohen told the conference there appears to be a "great gap" between the ambition and vision of some leaders and what is proposed at the negotiating table.

"While I would like to report to all of you great optimism that the leaders vision of a comprehensive and ambitious TPP can be acheived quickly, I cannot do so.

"There is deep concern that the TPP negotiations are at a critical crossroads and the next several weeks and months may well determine whether the vision of a truly comprehensive and ambitious TPP can be realised."

Mr Cohen says some areas of divergence include:

#  For the United States, limited or non-existent market access for imports of clothing, footwear and agricultural products.

# For New Zealand and Chile, intellectual property protection standards.

# For Australia, rejection of the investor state dispute process.

Concerns TPP will block cigarette 'plain packaging' plans

Labour's foreign affairs spokesman Phil Goff has launched a scathing attack on tobacco companies for "killing half its consumers".

Mr Goff has told the conference there is public concern the TPP will block government health regulations, including plans to force cigarettes to be sold in plain packaging.

"Tobacco companies will just have to accept that no responsible sovereign government is going to be deterred from regulating to prevent the promotion of a product that is unique in killing half its consumers if used in the way the manufacturer intends," Mr Goff says.

"That is death for an agreement like this, in more ways than one."

Mr Goff says TPP rules that affect the government drug-buying agency Pharmac will also be important in the negotiation.