SYDNEY/TOKYO -- New Zealand's Labour Party will lead the country's next government, a shift in power seen as a major setback for Japan's efforts to conclude the Trans-Pacific Partnership trade deal despite the U.S. withdrawal.
The change in Wellington comes as the New Zealand First party, which finished third in the Sept. 23 general election, revealed Thursday that it decided to form a coalition government with second-place Labour. The National Party, which led a ruling coalition for nine years and strongly supported the TPP, lost power despite winning a plurality of seats.
