Speeches and Articles
Turning dreams into reality - New Zealand and the United States
05 April 2011
It’s good to be with you this evening.
And when I say that, I really mean it !
Like the other delegates to the fourth US NZ Partnership Forum held Christchurch, I am anearthquake survivor.
The earthquake on 22 February brought our Forum to a premature end but more significantlycaused tragic loss of life and widespread damage and in a city that had welcomed us so warmly.
I’d like to place on record this evening my grateful thanks – indeed, the thanks of all of us – to the United States Government, their agencies and staff including from the USEmbassy in Wellington, who did, and continue to do, so much to help the people of Christchurch in the aftermath of this terrible tragedy.
Earlier today I attended the funeral of a distinguished New Zealander, a former Secretaryof Defence and New Zealand Ambassador to Washington, Denis McLean.
I am sure Ambassador McLean was pleased to see the magnificent response from the United States to the events in Christchurch.
I know that there are many here who like me salute his contribution to the relationship between our two countries and join in mourning his passing.
Events such as these remind us that behind all the moments of crisis and the twists and turns of politics, the economy and business there are people.
The reason we seek a closer, deeper relationship between New Zealand and the United States is not because of some political ideology or economic theory.
But because we New Zealanders and Americans as people share fundamental values and principles.
The way we express these values and principles and turn them into policy may differ, at times quite significantly.
But, as two democratic states sharing a deep attachment to the rule of law, human rights and the market economy, we are united by something greater.
This evening I’d like to spend some time reflecting on the relationship particularly in the light of the recent Partnership Forum and looking ahead to the prospects for a deeper economic relationship through the Trans Pacific Partnership.
A transformed relationship
On the wall of the gym I attend all too infrequently there is a poster with words that can sometimes be somewhat intimidating.
“The one thing that turns dreams into reality is effort”.
Doubtless these words are meant to inspire one to greater heights of physical endurance and achievement.
It did occur to me the other day while doing my best on the cross-trainer that they could apply equally to the conduct of international affairs.
In fact Secretary of State Hillary Clinton said much the same thing when she visited Wellington last November:
“Partnerships between countries do not build themselves ... it takes sustained effort and co-ordinated action and leaders ready to breathe life into a shared commitment”
Secretary Clinton’s remarks remind us that the positive state of the relationship – “the strongest and most productive in 25 years” as she also said – did not just happen by accident.
We are fortunate that in recent times we have had the leadership required to take the relationship to a new level.
A bi-partisan approach to the relationship in this country has helped greatly as has the work of successive Prime Ministers and Ministers.
But I am thinking most particularly of people like former Assistant Secretary of State Chris Hill, who was with us in Christchurch and who championed the thaw in the relationship during the Bush Administration.
His excellent work has been followed by his successor as Assistant Secretary of State, Kurt Campbell, who was also in Christchurch and who has had a long association with New Zealand.
On our side former Ambassador Roy Ferguson, current Ambassador Mike Moore, former Foreign Affairs Secretary Simon Murdoch and Defence Secretary John McKinnon have all been key players.
And on the non-government team we have had great leadership from Jim Bolger and John Mullen, respectively Chair and President of the two Councils and the support of influential people from government, business and the community who have been brought together through the Partnership Forum process.
This relationship-strengthening process has not been left to chance. In the words of Secretary Clinton, it has been planned, co-ordinated and sustained. It has been the result of close relationships, carefully nurtured over time. It has been a shared effort between government and non-government players. And it has worked.
I have no need to an audience like this to spell out just why the relationship is of such significance to New Zealand.
Not all our fellow citizens are equally convinced of this, as we would expect in a robust democracy like ours.
I’m sometimes asked if a closer relationship means we are simply dancing to an American tune and giving up the independence of our foreign policy and even the sovereignty of New Zealand.
I do not for a moment think that is the case.
If we want to achieve things New Zealanders want to see globally – peace, security, human rights, sustainable development - we have an interest in a closer relationship with the United States.
That’s because the United States remains an indispensable player in world affairs.
There are few global problems the Americans can solve on their own but few that can be solved without them.
In practical terms if New Zealand wants to see progress made on those global issues we care deeply about, we need the United States to be actively engaged on those issues and sympathetic to our points of view.
There are plenty of signs that in today’s environment the United States values the independence of New Zealand’s foreign policy.
Clearly the insights we derive from our close relationships with our neighbours in the South Pacific are appreciated.
Our growing relationship with China, fostered by our ground-breaking free trade agreement, gives us a special window on developments that the United States does not have.
Our principled stand on nuclear non-proliferation and disarmament saw Prime Minister Key invited to President Obama’s nuclear security summit.
New Zealand’s independence is not threatened by a closer relationship – if anything it is enhanced !
In similar way it is sometimes said that a free trade agreement with the United States will detract from New Zealand’s sovereignty.
I’ll have more to say about this later but again the opposite is the case.
We need the certainty and predictability of an FTA to prevent the United States (or any other trading partner for that matter) from taking actions that could harm us economically.
I’m not suggesting that such action is imminent but we have only to think of actions taken in recent years against our exports of kiwifruit, lamb or steel.
FTAs give smaller countries the protection of the rule of law.
If the negotiations are got right, then New Zealand’s economic sovereignty is enhanced not threatened.
Partnership Forum
I’d like to turn now to the fourth US NZ Partnership Forum, held in Christchurch in February.
The Partnership Forum inaugurated back in 2006 has been at the heart of this relationship strengthening effort.
The Forum was the brainchild of the two Councils – the US NZ Council in Washington and the NZ US Council.
It brings together every 18 months or so a distinguished line up of Ministers, senior officials, business and community leaders, around 150 of them, in structured conversation about the future of the relationship.
The Forum is invitation only and held under the Chatham House rule to facilitate free and frank discussion.
And there is generally plenty of that!
This year’s Forum took place within a few months of the Secretary’s visit and the signing of the Wellington Declaration.
During her visit the Secretary said that she looked forward to “filling in the detail of what the Declaration might mean in practice”.
And the Partnership Forum provided a great opportunity to focus on some “big ideas” for the future where an expanded US-NZ partnership could make real difference.
The theme of the Forum tried to set the tone: “The Power of Partnering: Global Challenges and the Role of the US-NZ Partnership”.
To help frame the discussion we commissioned a study from the Centre for Strategic and International Studies (CSIS) in Washington.
The final study document “Pacific Partners” was launched at the Forum and is available on the Council’s website.
I urge you to read it.
Research for the study was undertaken in association with the NZ Institute of International Affairs which brought together a team of academic and other experts from around New Zealandalongside a similar group in Washington.
The study is a thorough, systematic and scholarly assessment of the relationship and its future possibilities for expansion.
The Partnership Forum also brought together for the first time a group of twenty younger Americans and New Zealanders who met together in the “Future Partners Forum.”
The aims were to hear the voice of a younger generation and to support the excellent work of Ambassador Huebner who has developed a network of future leaders at university level.
Our American delegates were all Fulbright grantees currently studying in New Zealand and we were grateful for the strong support of Fulbright NZ and the US Embassy in making the Forum possible.
While the earthquake has delayed the Future Partners’ final report, this will be delivered in a few weeks’ time.
By their very presence at the event the Future Partners certainly energized the gathering and gave the discussions a strong future focus.
They joined a particularly strong US delegation including high ranking Administration officials from the State Department, Defence and the Department of Homeland Security, a Congressional delegation of six sitting members, former senior officials like Rich Armitage, Chris Hill and Paula Dobriansky and a raft of business representatives from well known companies like Boeing, Cargill, Kraft, Lockheed Martin, Pratt & Whitney and Time Warner.
The New Zealand delegation was equally eminent.
The Mayor of Christchurch welcomed us at the opening reception; the Prime Minister addressed the opening ceremony and the Governor General the Forum dinner.
Several Ministers were in attendance including Foreign Minister McCully and Trade Minister Groser along with the Leader of the Opposition, Hon Phil Goff, and several MPs.
Chairs and CEOs of New Zealand’s largest companies attended – including Anzco Foods, Air New Zealand, Fonterra, Solid Energy, Tait Electronics, Telecom, Zespri - along with the CEOs of seven government agencies and the major business bodies.
And what sort of things were discussed?
Nothing less than the whole range of mutual endeavour between the two countries:
• creating a platform for political engagement and security in the Asia Pacific region
• addressing climate change and building a low carbon economy
• building a platform for continued growth in the Asia Pacific region
• feeding the world safely and sustainably.
The Forum was memorable for some great rhetoric and fascinating insights although discussion not speeches was the order of the day.
That’s because the Forum is designed to be a dialogue and to capture the ideas, vision and energy of a range of players in the relationship.
And to inform, motivate and energise them to advocate for the relationship in their home country.
There is no official communiqué or statement.
But the matters under discussion and in particular the recommendations of the Pacific Partners report will form the agenda on which the two Councils will continue to work in coming years.
It has been especially heartening to see the way in which the Forum delegates have continued to show concern and to make financial contributions for the recovery of Christchurch.
For many it was particularly poignant that the last major service in the Christchurch Cathedral was held on the occasion of President’s Day when many Forum delegates were present.
Realising the TPP opportunity
The Partnership Forum was about more than business but one issue that was discussed at length was how to ensure that the Trans Pacific Partnership now under negotiation could
become the free trade agreement for the 21st century that it has the promise to be.
I am always struck at how those who are ideologically opposed to the negotiation constantly refer to “TPPA” – “A” for agreement.
In fact there is no TPPA except that agreement – the Trans Pacific Strategic Economic Partnership – which exists and has been ratified by New Zealand, Brunei, Chile and Singapore.
The expanded TPP which the United States, Australia, Malaysia, Peru and Viet Nam now wish to join is a negotiation, not a concluded agreement.
At this stage there is no expanded TPPA, although it might suit some to suggest that it has all been pre-negotiated.
This is far from accurate.
TPP is a work in progress – six rounds of negotiations have been held with at least another three scheduled until the end of this year.
The aim is to make substantial progress towards a completed agreement by the time President Obama hosts APEC Economic Leaders in Honolulu in November.
That’s a big ask and the pace of negotiations will have to pick up considerably if that timetable is to be met.
At this stage it is quite conceivable that ongoing negotiations will need to take place well into 2012 before the final agreement is concluded.
Some – mostly those opposed to the negotiation proceeding at all - are calling for the TPP text to be released for public discussion.
That would be premature.
The TPP text does not yet exist – that is precisely what is being negotiated.
This is not to say that the final text shouldn’t be released for discussion before the final agreement is ratified.
In New Zealand this is part of the normal process for Parliamentary consideration of international treaties.
It is right that there should be robust public discussion of these issues.
In my experience the negotiators in MFAT are very open to interest groups seeking briefings on issues in the negotiations but I agree that more could be done to explain what is under discussion in these negotiations.
But releasing negotiating text too early before it is agreed risks seeing those sectoral groups with interests in aspects of the negotiation working to undermine the agreement even before it is concluded.
We have seen that quite often in the World Trade Organisation or even in respect to climate change negotiations.
Trade negotiations work on the principle that “nothing is agreed until everything is agreed”.
In New Zealand there is a ratification process to go involving public and Parliamentary scrutiny of the final agreement.
And because in New Zealand law international treaties are not self-executing there needs also be implementing legislation passed giving effect to any changes in New Zealand’s law.
If all that is not the exercise of sovereignty I’m not sure what is!
It is true that there are sensitive domestic issues under discussion in these negotiations.
This is true for New Zealand, for the United States and for the seven other members.
That’s because TPP is an attempt to put in place a pathway for a Free Trade Area of the Asia Pacific, an even bigger concept.
New Zealand needs TPP because our country lives from trade and investment, because, as I mentioned earlier, we need the rule of law to protect us from larger more powerful partners and because there is a range of barriers that can be addressed by an agreement such as this.
A successful conclusion to TPP should enhance New Zealand’s economic sovereignty.
But a successful conclusion is not a foregone conclusion.
As I said this is a work in progress.
Finding ways to ensure New Zealand’s interests are met while ensuring there is something for all nine TPP parties is no easy task.
When I last spoke to you in August 2008 I said I was confident that the United States would come on board this negotiation, sooner or later.
I am optimistic that the negotiations will be brought to a successful conclusion!
But let’s make no mistake about it – like going to the gym, or building the relationship as a whole, it all depends on effort.
Conclusion
International relationships do not just happen, they are made.
In today’s complex world they require sustained commitment from a range of players.
I am conscious in speaking to you of the role played by your Association in bringing together Americans and New Zealanders, the people for whom this relationship matters.
It is satisfying for us to reflect on what has been achieved with the United States in recent years.
But, as the Future Partners remind us, there is a whole new generation for whom the relationship also needs to be made to work.
The Partnership Forum, and the Pacific Partners report, are attempts to steer us in the right direction.
The Trans Pacific Partnership negotiations will try to build a better environment for trade and investment for the decades to come.
“The one thing that turns dreams into reality is effort”.
Remember that next time you go the gym!
1. Remarks by Secretary of State Hillary Rodham Clinton, Wellington, 4 November 2010
2. Remarks by the Secretary of State, Hillary Clinton, on the occasion of her visit toWellington, 4 November 2010
3. www.csis.org
