New Zealand beef industry welcomes US free trade talks

US will soon negotiate entry into the Trans Pacific Partnership (TPP), a move that will benefit New Zealand's meat industry.

President Barack Obama has formally notified Congress that the US sees the talks as a chance to set the standard for 21st century trade agreements. The TPP is a regional free trade agreement that already includes Brunei, Chile, New Zealand and Singapore.

Australia, Peru and Vietnam also want membership in the agreement, and American negotiations will ensure that the US is not left out of regional trading arrangements in one of the most dynamic regions of the world.

The first round of negotiation is due to start on March 15, and will involve existing parties and inspiring members.

This will not just be a bilateral agreement for New Zealand with the US, as the TPP has the potential to deliver new trade flows in the Asia/Pacific region, said Meat & Wool New Zealand chairman Mike Petersen.

The US is New Zealand's largest beef market, taking 171,000 tonnes or 47% of the country's beef exports for the year ended September 2009, generating NZ$793 million (US$568.2 million) of revenue, 42% of total beef export value.

By global trade standards, New Zealand already enjoys good access to the US but there will still be significant benefits for the country's beef farmers, said Petersen.