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Hopes Obama won’t hurt trade deal

New Zealand Herald, Auckland

Hopes Obama won’t hurt trade deal

7 November 2008

By Paula Oliver

Two senior politicians with unique insights into New Zealand’s relationship with the United States are both hopeful the election of Barack Obama as President will not hurt the chances of a potentially lucrative trade deal.

Trade Minister Phil Goff said he did not see any barrier from an Obama Administration to talks that would see the US join a free-trade group that includes New Zealand, Singapore, Brunei and Chile.

"They will be more cautious than a Republican Administration but this is a deal that I think serves the purposes of both the United States and New Zealand," Mr Goff said yesterday.

He had met Mr Obama’s trade adviser and said the view was that "Obama is certainly not an anti free-trader".

Just over a month ago, the US announced it would enter negotiations to join the so-called P4 trade agreement in a move which was hailed at the time by Prime Minister Helen Clark as very significant.

Much hinges on how the new US Administration approaches trade matters and there have been suggestions that Obama would be negative for free trade and his opponent John McCain positive.

But these distinctions were rejected yesterday by National’s trade spokesman Tim Groser, a former ambassador to the World Trade Organisation and chairman of agricultural negotiations at the WTO.

"I have never subscribed to the idea that McCain was ’good’ for New Zealand because he was pro-trade and that Senator Obama was bad because he was protectionist," Mr Groser said.

"It was absolute nonsense."

Mr Groser said it was clear that the problem the US had with globalisation and trade liberalisation and submitting itself to multilateral law was nearly 20 years old and "far wider than just one Senator Obama".

"The problem is deep-seated," he said.

Mr Groser said it needed "an inspirational leader" to try to establish a new consensus in the US, and Obama was potentially that person.

"Now, Senator Obama, if you read some of the deep analyses that has been written on this subject, is not a protectionist," he said.

Mr Goff said he had been dealing with both Democrats and Republicans in Washington for some time and there would be a strong campaign within the US from New Zealand to get the P4 talks moving forward.

"So I don’t have any strong worries about trade, but I’m not complacent about the amount of work we’ve got to do," he said.

Outside trade, Mr Goff suggested the election of Obama could, if anything, further strengthen the relationship between the US and New Zealand, particularly if Labour was re-elected.


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