Appetite aplenty for open trade in this corner of the world

The key question facing negotiators now is who will be the cornerstone partner of the TPPA.

OPINION: In the light of recent global events it may seem that international trade is under threat. Decisions by the United States to pull out of the Transpacific Partnership Agreement (TPPA) and impose new tariffs appear to have set back the prospects for freer trade for New Zealand and other countries.

It could seem that we are in for a period of trade and economic stagnation. Fortunately not everyone is willing to simply accept this outcome.

Businessnz is very supportive of Trade Minister Todd Mcclay’s decision to engage with the remaining partners to see if the TPPA can be saved. This is consistent with our past support for open trade and our desire for the greatest possible number of trading relationships.

Standing up for free trade is part of our values. Our history over the past couple of generations tells the story of a small, protected economy leveraging the benefits of free trade to become more prosperous and diverse.

Our early embrace of free trade has seen us forge strong trading relationships with many nations, particularly in Asia, giving us solid, stable economic growth, better than in many other developed nations.

While the global financial crisis a decade ago set back many economies which have not yet fully recovered, New Zealand came out of the crisis in better shape than others.

Our history as a tradedependent nation means the benefits of free trade are probably more obvious to New Zealanders than others. As a country we are very willing to interact and trade with the rest of the world. Our values are openness, engagement and tolerance.

We seek to take part in the wider world while acknowledging that we are in pretty remote corner of it.

For nearly 200 years we have grown and developed on the basis of trade and migration, and as a result we are just about the most diverse nation on earth.

This is very different from a mindset that seeks to put up walls, ban immigrants from certain countries and highlight divisions between people.

Right now I believe a good dose of trade deals could bring some much-needed unity in the world.

The current situation, where trade relationships are viewed purely as a source of strategic or military advantage, is not helpful for the peace and prosperity of the vast majority of the world.

The key question facing negotiators now is who will be the cornerstone partner of the TPPA.

Will the US change course and revert to its previous position of supporter and defender of free trade? Or will the US remain outside the tent, leaving open for China the vital role of cornerstone TPPA partner?

Uncertainty about the direction of the TPPA could bring huge international ramifications.

It is helpful that some of the other partners – notably Japan are also keen to save the TPPA and to seek different options for this.

Japan has negotiated hard to get the TPPA this far, and has begun the difficult task of opening up its highly protected agricultural sector to help get it over the line.

Now, like New Zealand, it is willing to go further to try and save the deal from dying.

New Zealand has also negotiated hard and taken tough decisions in support of this deal and is now working to save the consensus achieved so far.

Current moves by New Zealand’s trade minister and other negotiators to bring home the benefits of open trade are welcome.

Kirk Hope is the chief executive of Businessnz.