9 Mar 2009

Hopes high US free-trade talks will resume

2:59 pm on 9 March 2009

National and Labour politicians remain hopeful that free-trade talks with the United States will resume despite a halt in Washington.

The US signed up under previous president George W Bush to talk to New Zealand, Chile, Singapore and Brunei, and possibly to Australia, Peru and Vietnam.

Trade talks on a trans-Pacific partnership deal which includes New Zealand were scheduled to take place in March, but US President Barack Obama has postponed discussions.

Mr Obama's nominee as trade representative has yet to be approved by Congress as the country's overall trade policy undergoes a review.

New Zealand Prime Minister John Key says he is disappointed the deal has hit a road block but hopes the talks will continue once the economic review is completed.

Federated Farmers president Don Nicolson says the talks must resume as freeing up international trade is vital to combatting the global financial crisis.

However, anti-globalisation campaigners remain sceptical about the benefits a free trade deal would have for New Zealand.

Even without a deal, the US is New Zealand's second-biggest export market and third-biggest source of imports.