By David Brunnstrom
NEW YORK, Sept 30 (Reuters) - New Zealand Prime Minister
John Key said on Wednesday he sees a good chance of wrapping up
a Pacific trade deal this week and warned political headwinds
may scupper the pact if negotiations drag on too long.
Trade ministers from the 12 countries negotiating the
Trans-Pacific Partnership gather in Atlanta later on Wednesday
in a bid to close the pact, which would cut trade barriers and
set common standards for 40 percent of the world economy and be
the biggest free trade deal in a generation.
Speaking at the Asia Society in New York, Key said New
Zealand, home to the world's biggest dairy exporter Fonterra
FCG.NZ , was still not happy with dairy market access but
agreement was closer on other tricky issues, including
intellectual property.
"I think there's actually a chance (the TPP) could get
completed this week," he said. U.S. elections are looming in
2016, which will make it more difficult to get the trade deal --
which is opposed by many Democrats -- through Congress.
"The window of opportunity to complete TPP is closing so you
wouldn't say it's impossible to complete the deal if it doesn't
take place in Atlanta, but it does become more difficult," Key
said.
TPP leaders will meet at an Asia-Pacific Economic
Cooperation summit in the Philippines in mid-November, which Key
said was "probably the last opportunity for 2015" to close the
trade deal, already been more than five years in the making.
New Zealand's state-subsidized scheme for pharmaceuticals
would be hard hit if the TPP mandates the U.S. standard of 12
years data protection for biologic drugs, preventing generic
alternatives from coming to market.
Malaysia's Economic Planning Minister, Abdul Wahid Omar,
told Reuters on Tuesday the country was still concerned about
rules on state owned enterprises and government procurement and
allowing foreign companies to sue host governments over
regulations that damage their investments.
"These are all the issues that are being ironed out at this
moment," he said on the sidelines of United Nations meetings.
"Free trade agreements are never easy and when it comes to
TPP, it's bigger than your traditional free trade agreement so
therefore the issues are complex. I think we are moving very
much closer and there is that hope among the various countries
to see whether the negotiations can conclude in Atlanta."
(Writing by Krista Hughes, Editing by W Simon)