John Key

Wellington, April 13 NZPA - Prime Minister John Key has won praise for pushing New Zealand's trade interests in Washington, with Federated Farmers saying today it was presenting the same arguments to a group of US senators concerned about opening up dairy markets.

Mr Key made his pitch at meetings with US Vice-President Joe Biden and Agriculture Secretary Tom Vilsack before the start of President Barack Obama's nuclear security summit.

The prime minister doesn't wants the concerns raised by the senators to impact on the Trans-Pacific Partnership (TPP) negotiations which started in Melbourne last month.

The aim is to extend the previously-negotiated P4 trade agreement between New Zealand, Brunei, Chile and Singapore to include the US, Australia, Peru and Vietnam.

"I made the points about the desire from New Zealand's perspective to see advancement of that free trade agreement, the importance that New Zealand placed on it, and also the importance I thought it had for the region," Mr Key told NZPA.

"I don't think either country should feel threatened by increasing market access, whether it's in agriculture or any other part of our economy."

The senators wrote to US Trade Representative Ron Kirk, accusing New Zealand of anti-competitive practices.

They feel Fonterra wields extensive control over world prices and have asked for their concerns to be given "very careful attention".

Those concerns have already been strongly answered by Trade Minister Tim Groser, who says they are completely unfounded, and Mr Key said he had emphasised that Fonterra had a strong relationship with US dairy companies and represented only about 2 percent of world supply.

Federated Farmers president Don Nicolson said his organisation and the prime minister were "on the same page" and commended Mr Key for raising those issues in Washington.

"Last week I sent a letter to the 30 US senators who showed scepticism about the TPP," Mr Nicolson said.

"I'm still waiting on a reply, but I'm really hoping at least some of the senators will take the opportunity to attend our conference in Invercargill from 23-25 June."

Mr Nicolson said Mr Key had suggested the TPP, far from hindering American agriculture exports, would allow both countries to work together.

"That's exactly what I'm telling these 30 senators -- the glass of milk for the US dairy farmers is actually half-full," he said.

"We are writing to the further 70 senators, who didn't sign the letter, inviting them down under to see how we farm."