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### Viewing cable 10WELLINGTON65, DAS Reed Engages on TPP, U.N. Reform, Environmental

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10WELLINGTON65 | 2010-02-19 07:07 | 2011-03-21 00:12 | CONFIDENTIAL | Embassy Wellington
Appears in these articles: http://www.nzherald.co.nz/index.cfm?objectid=10697084

`

    VZCZCXYZ0022
    RR RUEHWEB

    DE RUEHWL #0065/01 0500728
    ZNY CCCCC ZZH
    R 190728Z FEB 10
    FM AMEMBASSY WELLINGTON
    TO RUEHC/SECSTATE WASHDC 0385
    INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
    RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RUEHBY/AMEMBASSY CANBERRA 0103
    RUEHC/DEPT OF AGRICULTURE WASHINGTON DC
    RUEHSV/AMEMBASSY SUVA 0016
    RUEHWL/AMEMBASSY WELLINGTON

` `

    C O N F I D E N T I A L WELLINGTON 000065

    SENSITIVE
    SIPDIS
    STATE FOR EAP/ANP
    STATE PLEASE PASS TO USTR/WEISEL AND BISBEE

    E.O. 12958: DECL: 2020/02/19
    TAGS: OVIP ETRD PGOV SENV EAGR FJ NZ APECO MARR UN PREL
    SUBJECT: DAS Reed Engages on TPP, U.N. Reform, Environmental
    Cooperation, Fiji, APEC and Bilateral Issues with New Zealand

    CLASSIFIED BY: Robert Clarke, DCM, Department of State, US Embassy
    Wellington; REASON: 1.4(B), (D)

    ¶1. (C) Summary. During a series of meetings hosted by the
    Ministry of Foreign Affairs and Trade (MFAT) on February 19, EAP
    Deputy Assistant (DAS) Secretary Frankie Reed engaged on a wide
    range of topics including the Trans-Pacific Partnership (TPP), the
    United Nations, environmental cooperation, Fiji, APEC, and U.S./New
    Zealand bilateral relations. New Zealand Chief Negotiator for the
    Trans-Pacific Partnership (TPP) Mark Sinclair said New Zealand
    views the TPP as a platform for future trade integration in theid:
    Asia Pacific and recognizes there will a number of sensitive issues
    on both sides during negotiations. MFAT United Nations, Human
    Rights, and Commonwealth Division Director James Kember said New Zealand will continue to push for UN reform and voiced
    disappointment over U.S. handling of the Human Rights Report and
    Trafficking in Persons Report for New Zealand. MFAT environment
    officials welcomed more concrete cooperation with the United States
    under the Energy Development in Island Nations (EDIN) umbrella and
    expressed appreciation for U.S. support of the Global Alliance.
    MFAT Pacific Division Director John Adank said New Zealand
    relations with Fiji remain rocky and urged the United States and
    others to continue pushing the Bainimarama regime to return to
    democracy. On Asia-Pacific Economic Cooperation (APEC), MFAT
    Asia Division Director Stephen Payton said that New Zealand is
    reviewing its Bogor Goals and will work closely with the United
    States to prepare the stage for a successful APEC meeting in 2011
    in Hawaii. New Zealand is also open to allowing India to join
    APEC. America's Division Director David Taylor emphasized New
    Zealand's appreciation for USG efforts put forward on the review
    of the military relationship and covered a wide-range of other
    bilateral matters. End Summary.

    Trans-Pacific Partnership - Reaching for the "Gold Standard"
    -----------------------------------------------------------------------------

    ¶2. (SBU) Regarding New Zealand domestic issues surrounding the
    TPP, Chief Negotiator for the Trans-Pacific Partnership Mark
    Sinclair emphasized that it has been a long-held objective of the
    Government of New Zealand to conclude a free trade agreement (FTA)
    with the United States, and there is a public perception that
    getting into the United States will be an "el Dorado" for New
    Zealand's commercial sector. However, the reality is quite
    different, said Sinclair, since the United States is already quite
    open to New Zealand trade and investment. He underscored that New
    Zealand needs to manage expectations in this regard. In addition,
    Sinclair said that although New Zealand has already negotiated many
    free trade agreements, it is the first time New Zealand will
    negotiate an agreement that will open so many political
    sensitivities with a partner government. Sinclair noted that
    Minister for Trade Tim Groser is well aware of this and quoted the
    Minister as saying, "getting the United States to agree to engage
    on the TPP is the easy part; the negotiating process itself will be
    gut wrenching, especially achieving the gold standard."

    ¶3. (SBU) On multilateral issues, Sinclair emphasized that New
    Zealand sees the TPP as a platform for future trade integration in
    the Asia Pacific. If the eight initial members can reach the
    "gold standard" on the TPP, it will "put the squeeze" on Japan,
    Korea and others, which is when the "real payoff" will come in the
    long term. He also stated that another challenge in negotiating is
    that the current economic and commercial situation has put a great
    deal of pressure on domestic agendas. Negotiators must therefore
    be very cognizant of the impact on jobs, wages, and other such
    factors. When asked what New Zealand's position is on including
    new members, Sinclair put forth that "smaller is better" for the
    current deal. However, he emphasized, that what is more important
    is U.S. Congressional approval and if "critical mass" can be
    achieved with the initial eight. New Zealand will take a
    "constructive view" if the group needs to "bulk up" and include
    Malaysia, for example.

    ¶4. (SBU) When asked what the top local impediments will be to
    concluding an agreement, Sinclair noted a number of areas sensitive
    to New Zealand. It is "no secret" that Monsanto does not like New
    Zealand's genetically modified organism (GMO) regulations, Sinclair
    said. Intellectual property rights (IPR) is another "sleeper
    issue" that may raise concerns when it begins to impinge on New
    Zealand's digital lifestyle. Sinclair added that foreign
    investment is always open to populist views in New Zealand, and it
    can be particularly sensitive when it comes to land acquisition or
    New Zealand brands that are considered "icons." David Taylor added
    that investment involving New Zealand's natural resources will also
    be a sensitive point, particularly in light of the Government's
    recent decision to open up some conservation areas to resource
    extraction. According to Sinclair, pharmaceuticals are also bound
    to be a contentious issue.

    Multilateral Issues at the United Nations
    ----------------------------------------------------

    ¶5. (SBU) MFAT United Nations, Human Rights, and Commonwealth
    Division Director James Kember touched on UN reform issues, as well
    as the U.S. Human Rights Report and Trafficking in Persons Report.
    On the United Nations, he noted that New Zealand has not signed
    onto the Declaration on the Rights of Indigenous Peoples because
    there were still issues to be worked out in the domestic process.
    (Note: New Zealand officials said they voted against the
    Declaration because it was inconsistent with New Zealand's
    constitutional and legal arrangements. End note.) He said that he
    had met with former Prime Minister (and current UNDP Administrator)
    Helen Clark the previous day, and she urged New Zealand to continue
    pushing a U.N. reform agenda in the broader sense. Kember added
    that New Zealand will continue down this path, but it has largely
    been silent on Security Council reform. There is, however, a "red
    line" for New Zealand on Security Council expansion -- it does not
    want to see more members with veto power. New Zealand will also
    seek another term on the Security Council and would appreciate the
    United State's support of its candidacy. Kember assured that the
    Government of New Zealand has put a great deal of thought into this
    decision and believes that the move will help achieve the country's
    regional security goals.

    ¶6. (SBU) Regarding the G20, Kember said that although there are
    some that call into question whether it is a viable ongoing
    institution, especially because it excludes the G77, New Zealand
    continues to "have faith" in the G20. This is because New Zealand
    has a mechanism for accessing the G20 through U.S. leadership.
    Taylor added that New Zealand greatly appreciates the United States
    seeking the views of others; however, it is concerned about others
    being invited into the group. As the numbers creep up, New
    Zealand is "not comfortable" if it does not also have a place at
    the table. In response to the question of other U.N. institutions
    that need reform, Kember said that the U.N. Economic and Social
    Council (ECOSOC) and other regional institutions set within it have
    become irrelevant and their time had "come and passed." On the
    U.N. Human Rights Council, New Zealand appreciates close
    collaboration with the United States and hopes to strengthen future
    cooperation. In response to a question on Helen Clark's views on
    United Nations Development Program's disaster relief portfolio,
    Kember said she was laudatory of UNDP's work, and had said that in
    Haiti UNDP did the best it could given the circumstances. He
    added that Clark views the UNDP as an "influencer" not an
    "implementer" and believed that the institution should focus on
    strategizing and facilitating rather than getting into the "nitty
    gritty stuff."

    New Zealand Unhappy with Human Rights Report and the TIP Report
    -------------------------------------------------------------------------------------------

    ¶7. (SBU) Regarding the U.S. Human Rights Report and the TIP
    Report, Kember emphasized his disappointment with how the reports
    on New Zealand were handled. He said that New Zealand provides a
    great deal of information and input for the reports, and the
    results were a "poor reflection of what New Zealand provided." He
    added that the he appreciates the U.S. Embassy working closely with
    MFAT on the reports and expressed his hope that a "more accurate
    report will come out of it." DAS Reed responded that the U.S.
    Government appreciates MFAT's assistance and pointed out that the
    final report reflects a consensus that reaches beyond the Embassy
    or any geographic bureau at the State Department.

    Environmental Cooperation - Ready to Put Meat on the Bones
    --------------------------------------------------------------------------------

    ¶8. (SBU) On environmental issues, MFAT Environment Division Deputy
    Director Janet Lowe and Economic Division Officer Laura Hogg
    briefed DAS Reed on U.S./New Zealand cooperation under the Energy Development in Island Nations (EDIN) agreement and Global Alliance. Lowe emphasized the importance that New Zealand attaches to developing further projects that support island clean energy projects. She said that Foreign Minister Murray McCully wants to now "put meat on the bones" on the agreement that was reached
    between New Zealand, Iceland and the United States in 2008, not
    only because it will help island nations develop sustainable energy
    sources but also because it is another area to strengthen ties with
    the United States. The Minister is particularly focused on "the
    concrete stuff." Currently 65% of New Zealand's energy comes from
    renewable resources, and the country has a particular expertise on
    geothermal energy. According to Lowe, New Zealand completed a
    study on the feasibility of geothermal energy in 20 island nations.
    Of the 20, the study concluded that five countries had potential.
    Now New Zealand is studying how it can take this study to the next
    level. Besides geothermal, New Zealand is also looking at ways to
    help Tonga get a solar power station up and running. New Zealand
    is also interested in doing research together with the United
    States in Hawaii. Ambassador Huebner welcomed the opportunity for
    MFAT and the Embassy to work more closely on such projects. On
    the Global Alliance, Hogg said that New Zealand is very grateful
    for ongoing U.S. support. She underscored that the emphasis of
    the Global Alliance is twofold: address food scarcity and reduce
    greenhouse gas emissions.

    Pessimistic Outlook on Fiji
    -----------------------------------

    ¶9. (SBU) MFAT Pacific Division Director John Adank outlined the
    rocky relations between New Zealand and Fiji during recent years
    and pointed out that New Zealand is making every effort to revive
    its diplomatic ties with Fiji. He noted that since 2007, three
    New Zealand diplomats have been expelled (one high commissioner and two acting high commissioners). According to Adank, the
    expulsions occur whenever the Bainimarama regime tires of New
    Zealand's travel restrictions. Although New Zealand's diplomatic
    footprint has been reduced, Foreign Minister McCully is making
    every effort to move the relationship forward. During the first
    week of January, FM McCully met with Fiji's Foreign Minister
    Kubuabola and pressed the issue of restoring New Zealand's
    diplomatic footprint in Fiji and issues surrounding Fiji's erratic
    visa issuance for the Pacific Island Forum (PIF) officials. Adank
    underscored that the situation in Fiji has deteriorated further
    over the past year and that the United States, New Zealand,
    Australia and other countries need to continue pressuring Fiji to
    restore democracy. He added that there is no sense that the regime
    in Fiji intends on engaging internally or externally on the issue.
    Adank urged the United States to consider the reaction of other
    Pacific Island nations in any decision it takes with regard to
    Fiji. It needs to be done in the "right light" and "managed
    carefully" to avoid driving a wedge between the Pacific Island
    countries, said Adank.

    Asian Regional Architecture - Three Points on APEC
    --------------------------------------------- -----------------------

    ¶10. (SBU) MFAT Asia Division Director Stephen Payton briefly
    discussed three issues with regards to Asia-Pacific Economic
    Cooperation (APEC). He said that New Zealand will work closely
    with the United States for the next meeting in Yokohama and help
    prepare the stage for a successful APEC meeting in 2011 in Hawaii.
    Second, Payton said that New Zealand is currently reviewing its
    implementation of Bogor Goals, and there is some sensitivity around
    this. He pointed out that New Zealand has not met the "strict
    definition" of the goals, and there are perhaps some areas that New
    Zealand and the United States could work together in this regard.
    Last, Payton said that New Zealand is considering its position on
    APEC's membership moratorium. New Zealand is open to allowing
    India to join.

    Bilateral Relations with the United States - Continuing on an
    Upward Trajectory
    -------------------------------------------------------------------
    ------------------------------------

    ¶11. (C) Covering a wide-range of bilateral matters, America's
    Division Director David Taylor first and foremost emphasized New
    Zealand's appreciation for USG efforts put forward on the review of
    the military relationship. He welcomed the "candor and warmth" of
    discussions with DAS Reed and DASD David Scher and said that MFAT will continue to work with the Embassy on joint messaging. Taylor also noted his appreciation for the role of the Embassy and its
    "constructive, collegial relationship" with MFAT. Regarding the
    Secretary's visit, Taylor noted that the last minute postponement
    in January due to the Haiti crisis was completely understandable
    and he looked forward to her rescheduling. He hoped Washington
    would give as much advance notice as possible. On the topic of
    visitors in general, Taylor said there is "real value in visitors
    from Washington" and expressed his hope that the number of visitors
    from Washington will continue to grow. He also pressed on the
    issue of Prime Minister Key's visit to Washington and noted the
    PM's preference for June. In response to the last point, DAS Reed
    emphasized that the difficulty in scheduling was not a reflection
    of the relationship with New Zealand but was purely an internal
    coordination issue. Taylor also addressed the issue of budget cuts
    and resource caps at MFAT, but he expressed his expectation that he
    would be able to augment his staff at the New Zealand Embassy in
    Washington with an additional officer in the political section and
    an additional officer to handle the TPP.

    HUEBNER

`