Trans-Pacific trade deal top of agenda at White House

New Zealand's gift to President Barack Obama is a carved pounamu mere from the people of Ngai Tahu in a box carved to fit it. Photo / Supplied

John Key's meeting today with President Barack Obama in the White House caps an acceleration in closer ties with the United States since National came to power in 2008.

A one-hour meeting with President Obama was scheduled for 5.30am New Zealand time, and the Trans Pacific Partnership talks were to take centre stage.

Mr Key is only the fourth New Zealand Prime Minister to visit the White House in 28 years.

Helen Clark went twice during the George W. Bush years, and Jim Bolger went when Bill Clinton was President.

The thaw began under Helen Clark but with more willing partners in the Obama Administration, the changes have been swift.

The US in 2009 dropped its default position of banning joint military exercises with New Zealand and restored full intelligence sharing.

The agreement yesterday to send Marines next year to mark the 70th anniversary of their defence of New Zealand in World War II is steeped in symbolism about the historic ties and potentially stronger ones.

A contingent of US military personnel have not set foot in New Zealand since the breakdown of the Anzus relationship over New Zealand's anti-nuclear position in the mid-80s.

Mr Key said the Returned and Services Association would help determine what the Marines do in New Zealand or as Mr Key put it, "the best way to show New Zealand's gratitude".

But it is unlikely to involve military exercises - despite the US lifting its ban on joint military exercises.

Mr Key has also asked America to consider sending a Coast Guard ship to visit a New Zealand port.

He made the suggestion to Homeland Security Director Janet Napolitano and Defence Secretary Leon Panetta.

He also had a briefing from the Office of the Director of National Intelligence about where the new security threats were.

And in a punishing 47C heat he laid a wreath at the Tomb of the Unknowns at Arlington military cemetery.

The visit was planned before the US debt ceiling issue had grown to a crisis, consuming President Obama and both Houses of Congress.

Mr Key's main aim when he leaves Washington this afternoon is to have helped create momentum over the Trans Pacific Partnership agreement.

"In the end these things happen because there is leadership from the top."

Every trade deal had difficulties, and they had to be worked through.

"Overall this is a very deep and broad relationship and it's a very historic relationship and so an important part of being such great friends and being strategic partners is the opportunity to discuss all of those issues."

Yesterday Mr Key was briefed separately by Treasury Secretary Tim Geithner and Federal Reserve chairman Ben Bernanke on the American economy.

Mr Geithner reaffirmed his commitment to the Trans Pacific Partnership, being negotiated by nine countries including the US and New Zealand.

Mr Key said he had a useful discussion with Mr Bernanke "about the state of the economy at the moment, the nature of the recovery, the challenges that they face."

Mr Bernanke and Mr Geithner had been very frank, open and honest.

"It is a very sensitive time in the United States and it would not be useful for me to characterise what they said to me but they were very open."

Nation's gift

New Zealand's gift to President Barack Obama is a carved pounamu mere from the people of Ngai Tahu in a box carved to fit it.

"It's an extraordinarily generous gift," John Key said.

Ngai Tahu, the South Island's biggest tribe, would not take any money from the Government for it.

"They wanted to make that gift on behalf of the people of New Zealand."