New Zealand Labour Party leader Andrew Little has flayed the John Key government for excessive secrecy in Trans Pacific Partnership related talks. The trade deal is led by the United States and has strong resistance from many groups in New Zealand. Labour has offered conditional support to the TPP and called for provisions that will ban house purchases by foreigners in the country.

"Labour is pro free trade, as evidenced by the China Free Trade Agreement we signed in 2008. But by negotiating the TPP in complete secrecy, the Government is creating a level of public unease," Andrew Little said. In New Zealand, the TPP is facing strong opposition from many left parties. Recently, a meeting of the Labour Caucus announced that it will only provide conditional support to the trade deal. There are many unions under Labour with strong left leanings.

Sovereignty Important

Little reiterated that Labour will back the agreement only if it does not undermine New Zealand's sovereignty, and he outlined five conditions for its support:

• The protection of Pharmac.

• Right of Government to regulate "in the public interest" and not get sued by corporations.

• The Treaty of Waitangi must be upheld.

• Farmers to get meaningful gains in tariff reductions and market access.

• New Zealand’s right to restrict sales of farm land and housing to non-resident foreigner buyers.

Labour's policy seeks non-resident foreign buyers to shut out from the New Zealand housing market. Recently, the party released a controversial analysis of real estate data pointing to surge in offshore Chinese buying houses in Auckland. Labour now says that the foreign buyers’ policy would be allowed only under the guidelines in China FTA, which the party signed in 2008.

Labour also expressed concern that New Zealand’s recent FTA with South Korea contains many commitments around free investment and they may eventually get included in the Chinese agreement also. Neither China nor South Korea is involved in TPP negotiations. But Parker said Labour's understanding is that the aspect of the South Korean agreement can turn problematic in the TPP text.

"Everyone knows they can't disclose the actual text. But when New Zealanders are marching in the streets in their thousands...the Government has a duty, in my opinion, to properly inform New Zealanders what is happening,” Parker said.

PM Flays Labour

Reacting to Labour’s "non-negotiable" conditions to support the TPP, including the right to restrict sales of farmland and housing to non-resident foreigners, Prime Minister John Key described it as "crazy" and "schizophrenic. ” The PM said if Labour wanted to restrict sales to foreigners then it should not have included the "most favoured nation" clause in the China free trade agreement.

(Contact the writer at feedback@ibtimes.com.au)

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