Ardern’s first big test: TPP at Apec

Prime Minister-designate Jacinda Ardern faces a tough sell to impose last minute changes on a free-trade agreement between the 11 Pacific Rim countries, as they set to close the deal next month.

Ardern has confirmed she will be heading to Vietnam in November for the Asia Pacific Economic Co-operation (Apec) leaders forum.

It’s her first big test on the international stage, where she will be rubbing shoulders with the likes of United States President Donald Trump, and Japan’s Prime Minister Shinzo Abe.

Recent media reports have also suggested that Russian President Vladimir Putin will be attending.

No less, her yet-to-be-appointed trade minister is expected to chair a sideline meeting in the dying throes of negotiations to reach a deal on the TPP11, and Ardern hope to change tack on negotiations to push for a ban on foreign property speculators.

It’s unclear how receptive the 10 countries will be to major lastminute inclusions, and whether such moves might open talks further as the international partners try to gain ground elsewhere.

"I’m not going to set out on this task having already decided it’s too hard."

Jacinda Ardern

The leaders involved were hoping to sign the new agreement on the sidelines of Apec

Ardern told TVNZ’s current affairs show she was confident that she would not need to walk from the deal.

‘‘I refuse to accept they’re mutually exclusive. Our view is that it will be possible to balance our desire to make sure that we provide housing within our domestic housing market, that’s affordable, by easing demand and banning foreign speculators from buying domestic homes, whilst meeting our trade goals as well.’’

New Zealand has been deeply involved in the closing rounds of negotiations for the TPP11. It remains the world’s largest freetrade agreement, despite the withdrawal of the US by Trump.

The inclusion of Japan as the world’s third largest consumer economy was a particular jewel to place in New Zealand’s free-trade crown, and modelling under the previous Government estimated the deal could add $2.5 billion annually to the economy and save $222 million each year through the elimination of tariffs.

Ardern acknowledged her Apec agenda would be tough.

‘‘My job is to go there and convince them to sign to an agreement that will be in our best interests as well. I’m not going to set out on this task having already decided it’s too hard.

‘‘I’ve operated in an international environment, albeit a slightly different one, before. I’m used to different forms of negotiation in that kind of environment. Absolutely, everyone brings their own interests to the table.

‘‘But my job will be to advocate on behalf of New Zealanders; Both homeowners, potential home-buyers and exporters.’’

Banning foreign property speculators has been laid out in Labour’s 100-day plan, which meant legislation likely had to be passed before Christmas.

Such a law would also require the renegotiation of New Zealand’s free-trade agreement with South Korea.