NZ could still get US trade deal

New Zealand may be offered a oneon-one trade deal with the United States, but it would likely contain a 30-day ‘‘out clause’’, US President Donald Trump says.

Speaking to unionists after formally withdrawing from the 12-nation Trans-pacific Partnership trade deal, which included New Zealand, Trump said ‘‘we are going to have trade, but we are going to have one on one’’.

‘‘And if somebody misbehaves, we are going to send them a letter of termination, 30 days, and they will either straighten it out or we’re gone, not one of these deals where you can’t get out of them and it is a disaster.’’

Trump said the TPP was not the right way to conduct trade deals.

‘‘So we are going back to those countries one on one and that will be beautiful.’’

The new approach would see a lot of building in the US and plant expansion and a lot of people would be put back to work, Trump said.

‘‘We are going to use common sense and . . . do it the way it’s supposed to be done.

‘‘We are going to stop the ridiculous trade deals that are taking everybody out of our country and taking companies out of our country, and it’s going to be reversed.’’

Trump’s press secretary Sean Spicer earlier said Trump believed bilateral deals were preferable, as it gave the US more power and flexibility.

The TPP was ‘‘not putting the US interest first’’, Spicer said.

Spicer did not specifically mention New Zealand but he implied the US was getting the raw end of the agreement with the TPP, while smaller countries like New Zealand, Vietnam and Brunei were getting a sweeter deal.

New Zealand, Brunei and Vietnam have the lowest GDPS out of the 12 countries involved in the TPP.

Brunei, has a total GDP of US$16.11 billion (NZ$22.3B), Vietnam has a total GDP of US$171.4B (NZ$237.4B), and New Zealand’s GDP is $185.8b.

‘‘When you enter into these multi-national agreements, you’re allowing any country, no matter the size . . . to basically have the same stature as the United States in this agreement,’’ Spicer said.

Trade Minister Todd Mcclay said the US position on

"Our preference was to have the US involved in the TPP. However, the agreement still has value as an FTA with the other countries involved.'' Trade Minister Todd Mcclay

withdrawing from the TPP was disappointing from New Zealand’s perspective but not unexpected as Trump’s views had been clear for some time.

‘‘Our preference was to have the US involved in the TPP. However, the agreement still has value as an FTA with the other countries involved. For example, TPP is our first FTA with Japan, Canada, Mexico, and Peru. A number of TPP countries have expressed a strong commitment to the agreement, including Japan which has ratified.’’

Mcclay said he had met a number of TPP ministers in Davos last week and would continue to talk with them.

‘‘I expect TPP ministers to meet over the next few months to consider how to move forward. New Zealand’s economy depends upon fair access to overseas markets. We will continue to advocate for the benefits of trade liberalisation on the world stage,’’ Mcclay said.

Trump is also set to sign an order to renegotiate the North American Free Trade Agreement deal between the US, Canada and Mexico. – Fairfax NZ