Stronger trade with Asia means more jobs - Key

HANOI - More jobs and a stronger domestic economy will flow from further building New Zealand's trade ties with Asia's surging major economies, says Prime Minister John Key.

The fifth East Asia Summit (EAS) drew to a close yesterday in Hanoi and Mr Key said the major achievement from New Zealand's perspective was widespread buy-in from the summit's 16 members for an ambitious new regional free trade agreement.

The Comprehensive Economic Partnership in East Asia was "a very exciting proposition but it's fair to say these things take a long time to negotiate," he said as the summit was winding down.

"It took three and a half years to negotiate an free trade agreement with China but the end product has proven it means more jobs, more opportunities and greater economic growth for New Zealand."

Mr Key said EAS were optimistic about their economies.

"Clearly these are countries that growing and doing a lot better than other parts of the world but there is recognition that there are challenges out there."

The central challenge to the unity of EAS is the rivalry between China and the US which formally joins the group next year but was represented over the weekend by secretary of state Hillary Clinton.

"There have been some hiccups recently," said Mr Key, "but one gets the impression they're smoothing those over as best they can. That's not to underestimate those problems but I think they're involved in dialogue and that's the important thing."

Mr Key said there had been widespread acceptance and encouragement from existing EAS members for the entry of the US and Russia.

However, Mr Key said there wasn't a great deal of optimism evident around prospects for progress at the climate change summit in Cancun, Mexico late this year.

From New Zealand's point of view high points at the summit yesterday included a constructive discussion around trade liberalisation with Japanese Prime Minister Naoto Kan and initial discussions around a potential free trade agreement with Russia.

The summit also saw commitments to work on disaster management, with interest shown by the leaders of other countries in New Zealand's response to the Canterbury earthquake.

"There was generally a feeling we could coordinate as leaders with our experiences," said Mr Key.

Following his second, more detailed discussion with US secretary of state Hillary Clinton at the summit yesterday, Mr Key said the agenda for her visit to New Zealand this week was now taking shape.

Trade would again be a central issue given President Barack Obama's presence at next month's Apec meeting which Mr Key was to attend.

Mr Key said he also expected Mrs Clinton would provide updates on the situation in Afghanistan and other security hot spots including the Middle East, North Korea and Iran.