Barack Obama

Wellington, Nov 14 NZPA - The prospect of a free trade agreement between New Zealand and the United States moved a step closer today.

United States President Barack Obama, in a speech in Tokyo, committed to engaging with the eight-country Trans Pacific Partnership countries with the goal of shaping a regional agreement with broad-based membership and high standards.

The Associated Press reported Mr Obama said the US would seek with Chile, New Zealand, Singapore and Brunei to form a Trans-Pacific, regional free-trade agreement.

A similar effort in 2006 was seen as a possible stepping stone for a wider Asia-Pacific free trade area. But it stalled because of a lack of US commitment.

Trade Minister Tim Groser said a free trade deal with the US was a long-held goal.

"This is very good news for New Zealand companies looking to expand future business links with the United States.

"But the Trans-Pacific negotiation is even more important as a potential pathfinder for a future regional trade deal such as a Free-Trade Area of the Asia-Pacific."

The Chamber of Commerce congratulated Mr Obama and Prime Minister John Key, Trade Minister Tim Groser, Foreign Minister Murray McCully and the MFAT negotiating team for their work in helping convince the Obama Administration the US should be at the Trans Pacific Partnership negotiating table.

"We are convinced that President Obama has made the right decision," said chamber chief executive Charles Finny.

"Being part of a high standard broad-based FTA linking the US with Latin America, Asia and Australia and New Zealand sends a strong and positive signal about the US commitment to both Asia and free trade."

Meat and Wool New Zealand and the Meat Industry Association welcomed the news.

Association chairman Bill Falconer said half of all beef exported from New Zealand went to America and an agreement would put the country on level footing with Australia which already had an FTA with the US.

Mr Obama also pledged to work with APEC countries to complete the Doha round of world trade talks in what he described as a timely fashion.