KEY POINTS:
Relations with the US have improved dramatically, a free-trade deal is on the agenda and the election of new governments will not derail the progress, says visiting United States-New Zealand Council president John E. Mullen.
Prime Minister-elect John Key and Helen Clark both spoke at a partnership forum in 2007, Mullen said.
"And their positions vis-a-vis the United States were almost identical I would argue, quite seamless."
Barack Obama is a multilateralist and Mullen did not expect the US election to change the relationship.
"He has been quoted publicly as saying that globalisation will not be reversed and we'd all be worse off if it were," he said.
"So economically and politically I think the good relationship, the vastly improved relationship, which is described by so many people as the best in a quarter of a century, I think it will continue."
In March the US will start free-trade negotiations to become a partner to the Trans-Pacific Partnership of New Zealand, Brunei, Singapore and Chile.
New Zealand's nuclear stance, often seen as a sticking point for better relations, was now viewed as a cultural policy by the US.
"They find the benefits of a stronger relationship and working with New Zealand vastly outweighs having that determine the relationship," Mullen said.
The situation had improved, he said, because many thoughtful people had decided to put differences aside and agree to disagree, "But let's move forward because in this day and age of globalisation and terrorism you've got to find like-minded people who want to work together".
In the US, Republicans were generally more free-trade oriented than Democrats. Obama says he is in favour of free trade, although has opposed deals with Colombia and Korea, Mullen said. "He argues strongly that he says he's for smart trade," he said. "He doesn't believe that trade deals should be based on special interests, and that environmental and labour and safety standards in agreement should be enforced."
With the US facing an economic crisis, two wars, energy and healthcare issues, trade might get pushed slightly down the list, he said. There were a number of "big ticket items" not to mention the environment and global warming. However, most thoughtful people thought the economic crisis strengthened the case for free trade.
Washington-based Mullen had no idea when the world would be through the worst of the economic crisis.
"If I knew I'd know when to get back into the market," he said.
The worst economic crisis since the Depression had called into question whole economic structures.
"It will be different, there will be increased regulation, one hopes that they will not be over-reaching."
The issues facing Obama have been likened by commentators to those faced by Franklin Roosevelt and Abraham Lincoln, Mullen said.
"So I don't think anybody has any illusions about how tough all of this stuff is going to be."
