KEY POINTS:
Exploratory talks are being held that could lead to United States' involvement in an existing four-country trade agreement with New Zealand - a prospect Trade Minister Phil Goff describes as "significant".
Talks are at a very early stage but it appears the US, which has not yet been
persuaded to enter direct bilateral free trade talks with New Zealand, is interested in linking into a Pacific region agreement between Chile, Singapore, Brunei and New Zealand.
Mr Goff yesterday said there was "exciting potential" in the possibility of US involvement in the agreement known as P4, although discussions were very much at a formative stage.
"I don't want to overstate the case, the discussions are at this stage exploratory," Mr Goff said.
A Bloomberg report yesterday quoted lobbyists as confirming the Bush administration was preparing to negotiate an agreement linking the US with the P4 countries. Talks would start as early as next month.
Mr Goff said there had been talks between members of the P4 and with the US, and he had also spoken with US Trade Representative Susan Schwab about the idea.
"What we're doing at this stage is exploring the options for working with the United States around an agreement that they regard as a very modern and high quality free trade agreement, the P4," Mr Goff said. "There are other countries who have also expressed an interest in the P4, but the United States is obviously a big player and therefore there is some significance in their interest in it."
Asked if linking to the US through the existing trans-Pacific agreement was effectively a second prize to the bilateral trade deal New Zealand had been seeking for some time, Mr Goff indicated it was more than that.
"It wouldn't necessarily be a second prize if it went through," he said. "It would be a first-equal prize."
The P4 agreement could be seen as a building block towards a wider Pacific region trade deal which would include many more countries.
Talk of an Asia-Pacific deal has gathered pace as global trade talks stumble. However, any talks with the US about joining the P4 are unlikely to be fast-moving. The expiry of the President's Trade Promotion Authority - the ability to negotiate international trade deals that Congress either accepts or rejects but cannot amend - is seen as a stumbling block in many quarters.
Mr Goff said the lack of an authority was "a significant factor", and nothing would happen instantly.
