Jacinda Ardern stresses need for US to be 'present and engaged' in Indo-Pacific's 'economic architecture'

Prime Minister Jacinda Ardern has heralded the leadership of the United States during the Ukraine crisis, while also stressing the importance of it being "present and engaged in the economic architecture" of the Indo-Pacific.

Speaking at the New Zealand US Business Summit in Auckland on Monday morning, Ardern said Aotearoa has been "proud to work alongside democratic governments from Europe and our own region" in response to Russia's invasion of Ukraine in February. 

"The unity of response and collective determination to resist aggression could not be clearer," she told attendees. "Here today let me specifically acknowledge the leadership shown by the Biden administration."

But "keeping the peace is not just a task for soldiers", Ardern said. She moved to discussing New Zealand's historical involvement in international frameworks that haven't simply focused on security, but also trade.

"I said before that leadership in world affairs is not just the prerogative of big countries. I believe New Zealand can take pride in the leadership it has shown over decades not only in the WTO but also in shaping the trade architecture of our own region.

"As you know better than most, this has transformed the ability of New Zealand companies to trade in markets and sectors previously closed to us."

Ardern reiterated New Zealand's "preference to see the United States enter the CPTTP", which then-US President Donald Trump withdrew his country from in 2017 when it was in the TPP form.

"We have our own commercial reasons for wanting that," Ardern said. "But the stakes are much higher."

"It remains really important for the United States to be present and engaged in the economic architecture of our region. Because resilience and stability in our region is not solely defined by defence or military arrangements, but relationships in many forms."

American counterparts had "fully registered" the "need for engagement", Ardern said.

"The real question is what form that engagement might take. And how it responds to the changes under way in the geopolitical and commercial environment."

Ardern wants the US in CPTTP and confirmed interest in a new Biden-led initiative.
Ardern wants the US in CPTTP and confirmed interest in a new Biden-led initiative. Photo credit: Newshub.

She confirmed New Zealand's interest in US President Joe Biden's Indo-Pacific Economic Framework (IPEF) initiative. 

It's described by the White House as a multilateral partnership to "promote and facilitate high-standards trade, govern the digital economy, improve supply-chain resiliency and security, catalyze investment in transparent, high-standards infrastructure, and build digital connectivity".

But it's also been reported as a means for the US to counter China's growing economic influence in the region. Reuters reported earlier this year that Washington had "no intention" to engage with Beijing over the initiative. 

Ardern told the business summit on Monday the IPEF "is not a traditional trade negotiation but it does have a trade element". She expressed interest in the digital trade component as well as the focus on clean energy and decarbonisation.  

"The Indo-Pacific region accounts for over 50 percent of global carbon dioxide emissions. An initiative that brings together big emitters and has an explicit climate focus has real appeal to governments like ours that want to see collective action at scale and with a sense of urgency."

Among others speaking at the summit is US Secretary of Commerce Gina Raimondo, who has previously said the US won't join the CPTTP "as presented"

In November, Raimondo said the US' desire for a new Indo-Pacific economic framework "isn't about China"

"This is about developing robust commercial and economic relationships with our partners in the Indo Pacific where we have had a robust relationship for a long time, but for the past few years."

Kurt Campbell, the White House's Indo-Pacific coordinator, is also speaking. Late last month Campbell journeyed to the Solomon Islands to highlight the US' concern about the country's security cooperation agreement with China.

New Zealand has also spoken out against it, saying the Solomons can rely on assistance from other countries within the Pacific Island Forum if it has security needs.

Ardern on Monday said New Zealand has a "unique perspective" as "we are of the Pacific".

"We, I think, bring an insight that is pretty unique to us. We have relationships with a number of those players that are at the heart of some of these issues and so sharing our view matters. Let's not trivialise the role, I think, we can play."

Ardern will lead a business delegation to the United States later this month.

"In shaping a programme several themes have been top of mind," she said.

"One is to leverage the new 'work from anywhere' culture that has taken off over the past couple of years – one of the few good things to come from the pandemic. In practical terms it means distance is no longer the barrier it once was."

She will also be highlighting "our sustainability credentials" and our Kiwi talent. 

"The efforts of our movie makers and games developers have put us on the map. New Zealand’s creative sector has huge strength," Ardern said.

"We have an equally compelling story to tell on tech and innovation – whether we are talking software or space. Now we need to keep telling it."

Ardern's speech came on the same day that vaccinated tourists from visa-waiver countries - including the US - could come to New Zealand. 

"The movement of people is scaling up, and the exports that are the deep and solid roots of our economy, even throughout the pandemic which shut so many other doors, are growing further still, with many opportunities possible within this period of economic recovery from COVID-19."