TPP agreement 'not on rocks just yet'

President Barack Obama has failed to win fast track approval for the Trans-Pacific Partnership (TPP) agreement. Photo / Getty Images

The Trade Minister says it will be a "major opportunity lost" for New Zealand if the Trans-Pacific Partnership agreement does not come to light.

President Barack Obama has failed to win fast track approval for the Trans-Pacific Partnership (TPP) agreement.

A crucial vote affecting the TPP was held in the United States House of Representatives overnight, where the House voted to decide whether to give President Obama's Administration "fast track authority".

It was announced this morning (NZT) that the US Congress had not passed a Trade Adjustment Assistance bill (TAA), which would see assistance provided for workers who lose their jobs as a result of US free trade agreements, after it was massively defeated by 302 to 126 votes.

Following this vote, the Republican leadership held a symbolic vote on a separate measure which would give President Obama the authority to fast track negotiations around the TPP trade deal.

It was narrowly passed by 219 to 211 votes, however it still did not pass in the House, and another vote would now take place next week to see if it could be revived.

Speaking to TV 3's The Nation this morning, executive director of the New Zealand International Business Forum Stephen Jacobi said while it was a setback for the United States it was "not the end of the story".

"I think you can say the ship is taking water, but it's not yet on the rocks."

"The important thing to remember is the fast track legislation itself was actually passed, and it's a supporting piece of legislation around assistance for workers and companies that is in doubt.

"I think there are procedural things that can be done next week to try to get this whole package through but it's going to take a lot of fancy footwork on the part of the leadership of the house of representatives."

Trade Minister Tim Grosser told The Nation that the fundamental problem was there was extremely weak support within the US Democratic party for trade.

"Whether or not there is a procedural way around this, that's the rock in the road.

"Assume they can't get around the rock in the road... we will not do TPP anytime soon, it's as simple as that. And that will be a major opportunity lost for New Zealand unfortunately if that proves to be the case."

The TPP, officially known as Trade Promotion Authority (TPA), involves 12 countries including the United States, New Zealand and Australia, and would be the biggest trade agreement ever signed.

- NZME.