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### Viewing cable 09WELLINGTON327, New Zealand Lead Negotiator Discusses Vision and Challenges

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09WELLINGTON327 | 2009-12-21 06:06 | 2011-04-28 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Wellington

`

    VZCZCXYZ1684
    RR RUEHWEB

    DE RUEHWL #0327/01 3550621
    ZNR UUUUU ZZH
    R 210621Z DEC 09
    FM AMEMBASSY WELLINGTON
    TO RUEHC/SECSTATE WASHDC 0262
    INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RUEHBY/AMEMBASSY CANBERRA 0058
    RUEHGP/AMEMBASSY SINGAPORE 0007
    RUEHHI/AMEMBASSY HANOI
    RUEHPE/AMEMBASSY LIMA
    RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
    RUEHSG/AMEMBASSY SANTIAGO
    RUEHWL/AMEMBASSY WELLINGTON

` `

    UNCLAS WELLINGTON 000327

    SENSITIVE
    SIPDIS
    STATE PLEASE PASS TO USTR WEISEL/BISBEE
    TREASURY PLEASE PASS TO WILLIAM FOSTER
    AGRICULTURE PLEASE PASS TO EVAN MANGINO

    E.O. 12958: N/A
    TAGS: ETRD PGOV NZ ECON ECIN EINV
    SUBJECT: New Zealand Lead Negotiator Discusses Vision and Challenges
    for TPP

    ¶1.  (SBU) Summary.  During a December 15 courtesy call, the
    Ambassador engaged Ministry of Foreign Affairs Trans-Pacific
    Agreement Lead Negotiator Mark Sinclair on his views of the
    Trans-Pacific Partnership (TPP).  Sinclair expressed his hope that
    New Zealand and the United States will work closely to produce a
    "high quality" regional deal.  According to Sinclair, New Zealand's
    TPP negotiating team does not yet have a formal mandate from the
    Cabinet; the team plans to first seek guidance from the Cabinet
    after surveying other countries' positions at the initial March
    round in Melbourne.  Sinclair emphasized that New Zealand is
    seeking a "clean result" without carve outs, but he cautioned that
    other TPP members have residual sensitivities from previous free
    trade agreements already signed with the United States, which will
    make it difficult to get a good result.  Overcoming these obstacles
    will require a frank dialogue about what the eight countries hope
    to achieve; this common understanding will serve as the basis for a
    solid TPP agreement.  Sinclair said that New Zealand feels a
    special kinship with the Vietnamese since New Zealand and Vietnam
    are the only two countries in the TPP without a free trade
    agreement (FTA) with the United States.  New Zealand hopes to raise
    the TPP with Vietnam in bilateral discussions slated for January.
    End Summary.

    Looking to Washington for Leadership

    --------------------------------------------- -----

    ¶2.  (SBU) Sinclair emphasized that the TPP is a central element in
    a full bilateral agenda, and as such, it requires the two sides
    coordinate closely.  He also noted that since New Zealand is one of
    the few countries already in the TPP that does not already have an
    FTA with the United States, bilateral negotiations will figure
    importantly.  Sinclair said he was struck by the U.S.
    Administration's reference to the TPP as a "high quality regional
    deal".  "This has implications for us," said Sinclair, "especially
    when it reaches beyond borders."  It will increase the challenges
    and bring us back to the issue of political management of the
    process.  He emphasized that the United States will need to play a
    leading role in managing the political process by sending the
    "right signals" on carve outs and exemptions.  Sinclair  also
    underscored the importance his team attaches to the working
    relation with the U.S. Trade Representative's office and expressed
    his hopes that the two sides can work closely.

    ¶3.  (SBU) According to Sinclair, New Zealand does not yet have a
    formal mandate for the TPP.  Typically FTA negotiating teams go to
    the Cabinet for guidance.  However, the TPP negotiating team is
    waiting until after March meetings in Melbourne.  Sinclair views
    the meeting in Melbourne as an "opportunity to hear what others
    intend for the process."  He can then go to the Cabinet to seek
    guidance after he has survey the lay of the land.  Sinclair said he
    is particularly interested in what Washington is looking for in the
    TPP and asked the Ambassador for his views on the matter.  In
    response, the Ambassador noted that it is too early to tell.

    Looking to Test the Boundaries

    -----------------------------------------

    ¶4.  (SBU) Sinclair cautioned that other countries that are
    currently part of the TPP and already have FTA's with the United
    States have residual sensitivities from prior negotiations.
    Australia and Chile may be particularly predisposed to being
    conservative on the TPP.  As a result, Sinclair concluded that much
    of the "intellectual effort" will need to come from Washington and
    Wellington.  As the biggest player, Washington will play a very
    important role in coming up with the right framework.  And, to the
    extent possible, New Zealand wants to "test the boundaries" to come

    up with a high quality regional agreement.

    ¶5.  (SBU) Despite the fact many of the parties will have defensive
    sensitivities, New Zealand wants a "clean result across the board".
    Sinclair underscored that the agreement will work best if there are
    "no exemptions or carve-outs."  He hoped quality would be the first
    test of the agreement, adding that it will only be made possible by
    integrating our objectives.  To get quality, participants will have
    to tackle "at the border and behind the border" issues, said
    Sinclair.  However, he was not confident that all the participant
    countries will want to take the risk.  Sinclair saw the diversity
    of players and the temptation to extend flexibilities as the
    biggest challenges to the process.  Any exemptions made for
    countries such as Vietnam will have implications for the future of
    the TPP since other potential members will see an opportunity for
    their own carve-outs.  "Leftovers" from other FTA's will also need
    to be dealt with to ensure the TPP is a quality agreement.  Certain
    areas, such as sanitary/phytosanitary (SPS) will be

    particularly challenging to get consistent rules across the
    spectrum.

    Need to Build a Common Understanding

    --------------------------------------------- --------

    ¶6.  (SBU) The New Zealand Government hopes to first come to an
    understanding of what the eight countries hope to achieve and then
    build on that common understanding.  Sinclair added that each
    country is hanging on to its own "little fantasy" about what is
    achievable.  Therefore, it is important for the eight countries to
    openly discuss what each wants and does not want.  Each country
    will also have to adjust its expectations in the end.  Sinclair
    warned against rushing into the technical negotiations too quickly;
    rather, a great deal of hard work is needed at the "conceptual
    level" first, said Sinclair.  It would be a mistake to allow
    separate negotiations to begin on individual chapters, each with
    its own model. A comprehensive framework is needed first.

    Working with Vietnam

    -----------------------------

    ¶7.  (SBU) Tongue-in-cheek, Sinclair noted that New Zealand and
    Vietnam have a special kinship because they are two of the TPP
    countries that do not already have an FTA with the United States.
    Sinclair quipped that the two countries will have to stick together
    because "the United States will be extra tough on us." He added
    that the other members of TPP will be especially wary of Vietnam
    and New Zealand because they will not want to "pay for their
    gains."  New Zealand will hold bilateral discussions with Vietnam
    in late January or early February.  Although it is a regularly
    scheduled meeting, New Zealand wants to put TPP on the table.
    (Comment: MFAT officials have told us on numerous occasions that
    New Zealand wants to partner with the U.S. on encouraging Vietnam
    to accept sensitive provisions in the TPP, such as environmental
    and labor standards.  They note that the United States working
    alone may appear too heavy handed.)
    CLARKE

`