Fran O'Sullivan: TPP stepping stone to giant Asia-Pacific deal

TPP puts to an end decades of stasis on Asia-Pacific trade. Photo / Greg Bowker.

Geneva has the World Trade Organisation. Brussels hosts the European Union. Will the Trans-Pacific Partnership put Auckland on the map?

That's a distinct possibility as New Zealand considers a pitch to host a robust secretariat for the TPP in Auckland to ensure the long-term health of the agreement.

If the bid comes off it will be an international vote of faith in the prowess of NZ's trade negotiators and in the ability of this small nation's skilled diplomats to continue to replicate their success in administering the expansion of the original Pacific Four right through to today's 12-strong TPP and beyond.

NZ is also well positioned when it comes to shepherding China's ascension to the TPP tent, thus bringing the two Asia-Pacific super powers into the one regional trade umbrella.

The reality is that the TPP is a just a stepping stone (if a very large one) to the holy grail of Asia-Pacific trade, which is a regional free trade agreement linking the Apec economies.

Already other Asia-Pacific nations such as South Korea, Taiwan, the Philippines (which will host the 2015 Apec Leaders meeting) and even Colombia (which sits outside of Apec) have expressed an interest in joining the TPP.

Trade Minister Tim Groser said as much when he told an Atlanta press conference that the "TPP bus" would be carrying on and picking up more countries. Groser later indicated that South Korea, which will experience huge trade dislocation as a result of its major competitor Japan joining the TPP, is at the head of the queue.

Sure, it still has to get through some difficult hoops within the 12 signatory nations. That's fair enough. The trade-offs should be scrutinised.

But for New Zealand, which has sat outside the tent while nearest neighbour Australia notched deals with Japan and the United States, this was the best path to ensuring NZ companies and agribusinesses did not continue to be disadvantaged by the preferential access their Australian counterparts enjoyed.

Those that resorted to a ridiculous level of hyperbole as they claimed NZ would be sold out by the current crop of politicians will continue their jihad.

There are issues with the deal.

It is not yet clear whether the "rules of the road" will assist the expansion of digital businesses or give too much power to established players.

The new commercial rules will set a much more robust platform in other areas like competition.

TPP puts to an end decades of stasis on Asia-Pacific trade.

International credit will go to big players like US Trade Representative Mike Froman or Japanese Economic Minister Akira Amari.

But Helen Clark, Phil Goff, Tim Groser and John Key also deserve plaudits.