9 Oct 2008

Defence industry renews calls for US trade deal

4:48 pm on 9 October 2008

The defence industry is renewing calls for a free trade agreement with the United States, which would allow New Zealand companies to compete for a slice of US military contracts.

Representatives of local companies met in Wellington this week for a conference of the Defence Industry Association.

Defence companies cannot directly register for US Federal Government contracts because New Zealand does not have a free trade deal with the United States.

Due to these constraints, Tait Electronics says it has to do some of its manufacturing in Texas, and has built a plant there that is a direct replica of its facility in New Zealand.

The company says it would return production to New Zealand if a trade deal with the US is negotiated.

The US is starting trade negotiations with the P4 group of countries, which includes New Zealand, in March next year.