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Vice President Biden seeks to encourage NZ adherence to perilous trade policies

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Increasingly awkward national role as US foreign policy cheerleader

US Vice President Joe Biden’s “touchdown” this week in New Zealand presents New Zealand premier John Key with the problem of having to enthuse over several issues that he knows are actually or potentially damaging to the economy, or are being viewed as unlikely to happen.

They are:-

  • China’s expansion into the South China Sea. This falls on top of the steel dumping issue. Any overt condemnation of China’s territorial incursions into the South China Sea has the possibility of very severely damaging New Zealand’s dairy exports. China’s economy is a command one which means that a centralised dictat would simply be issued on one pretext or another, and the exports would be choked off.
  • Vice President Biden will seek New Zealand’s continuing participation in the US-led embargo on trade with Russia. This is actually at this moment damaging New Zealand exports because it is causing to be backed up all over continental Europe a gigantic surplus of foodstuffs, especially of the dairy variety, which would normally be sent to Russia.
  • Mr Key will be required to enthuse over the Trans Pacific Partnership trade treaty so recently signed off in Auckland.

Mr Key will have to keep his mouth shut on the now distinct possibility of a President Donald Trump who has pledged to cancel all such trade treaties on being elected.

From the MSCNewsWire reporters' desk, Tuesday 19 July 2016