Radio New Zealand - Te Reo Irirangi o Aotearoa

US rep rejects call to exclude dairy from trade deal

Updated at 6:14 am on 17 April 2010

US Trade Representative Ron Kirk has rejected calls by American lawmakers for dairy to be excluded from a free trade deal that includes New Zealand.

The legislators want Mr Kirk to exclude dairy from the eight-country Trans Pacific Partnership.

The call from the Congressional dairy farmers caucus followed a letter from 30 senators in March opposing dairy's inclusion.

It claims increased imports of New Zealand dairy products will depress already-low prices and devastate the US industry.

But Mr Kirk says it is too early to exclude sectors from a possible deal and improving access to overseas markets as a result of the deal could be a boost for American farmers.

Meanwhile, New Zealand Prime Minister John Key has expressed unease at the inclusion of Canada in the Trans Pacific Partnership.

Canada, which has a strong local dairy lobby, is not currently part of the talks but is believed to be pressing to join.

Copyright © 2010, Radio New Zealand