Prime Minister John Key used his lengthy meeting with United States Vice-President Joe Biden today to push for progress on free trade.Mr Key also hammered New Zealand's message in talks with Agriculture Secretary Tom Vilsack on the sidelines of the 47-na
Prime Minister John Key used his lengthy meeting with United States Vice-President Joe Biden today to push for progress on free trade.
Mr Key also hammered New Zealand's message in talks with Agriculture Secretary Tom Vilsack on the sidelines of the 47-nation nuclear security summit in Washington today.
Over the next day or so he will get a chance to bend President Barack Obama's ear and again trade will be top of the agenda.
"I know there's going to be some one-on-one time with him over the course of the next 24 hours," Mr Key said.
"That will again be an opportunity to push our key messages. Obviously it will be trade but also our approach to climate change and a general discussion including about Afghanistan."
Talks started last month in Melbourne on a Trans-Pacific Partnership (TPP) which would extend the previously negotiated P4 trade agreement between New Zealand, Brunei, Chile and Singapore to include the US, Australia, Peru and Vietnam.
A group of 30 US senators recently wrote to Trade Representative Ron Kirk accusing New Zealand of anti-competitive practices. The group feel Fonterra wields extensive control over world prices and have asked for their concerns to be given "very careful attention" when the US considers opening up trade with New Zealand.
Mr Key said during his 40-minute meeting with Mr Biden the TPP was discussed.
"I made the points about the desire from New Zealand's perspective to see advancement of that free trade agreement, the importance that New Zealand placed on it but also the importance I thought it had for the region," he said.
"I acknowledged the challenges that we face in successfully concluding the Trans-Pacific Partnership and I think it's fair to say there are challenges."
On the agricultural front he argued there was nothing to fear from freer trade.
"Global demand for food is going to increase by 50 percent over the next 20 years. I don't think the issue is really one of whether there will be enough demand for increased agriculture output from either the United States or New Zealand. It's really a matter of our capacity to supply," he said.
"I don't think either country should feel threatened by increasing market access, whether it's in agriculture or any other part of our economy."
Mr Key touched on Fonterra, emphasising to Mr Biden that the company had a strong relationship with dairy companies in the United States and represented only about 2 percent of world supply.
The use of government drug buying agency Pharmac is also likely to be a thorny issue in trade talks.
"There's always going to be a number of contentious areas and I have no doubt that Pharmac is one of those areas where there will be a discussion about access by US pharmaceutical companies to the New Zealand market or greater access but you know we are in very early days at the moment."
Last months talk's in Melbourne were preliminary, he said.
"There's a lot of water to flow under the bridge before we successfully conclude the Trans-Pacific partnership and see the final shape of it."
However, Mr Key gave the assurance that Pharmac, which gets good deals for the New Zealand health system, was here to stay: "It's not something we are looking at getting rid of."
The meeting with Mr Vilsack was again positive and "an opportunity to swap notes". The pair had a general discussion on how to progress the TPP, with agriculture being a tough issue for the Americans because of their domestic farmers.
Mr Vilsack spelled out concerns and Mr Key said an intense debate was expected.
"Obviously they want to see progress made."
