TPP_ The US is in: what next for the TPP?

FINANCIAL REVIEW

Jun 25 2015 at 2:09 PM
Updated Jun 25 2015 at 2:09 PM

The US is in: what next for the TPP?



President Barack Obama finally has a clear road ahead in his efforts to conclude the Trans Pacific Partnership trade agreement. But it's not a done deal yet. AP

by Shawn Donnan

The US Congress has put the final stamp on legislation giving President Barack Obama the "fast-track" authority to complete the most ambitious regional trade deal in recent history.

The Trans-Pacific Partnership would include two of the world's three biggest economies - the US and Japan - and with 10 other countries involved would cover some 40 per cent of the global economy. That would make it the biggest trade deal completed since the Uruguay Round in the 1990s which created the World Trade Organisation.

The TPP is intended to be the first of a series of "mega-regional" trade agreements to update the rules of commerce for the 21st century. Its signatories would agree to abide by a vast new set of guidelines on everything from the free flow of data across borders to how state-owned enterprises compete with private sector companies.

The deal aims to strengthen the economic bonds between the US and its Pacific allies while attempting to forge a global economic rulebook before China does. So what comes next?

THE MINISTERS GATHER

For months US and other TPP negotiators have been waiting for Congress to give Mr Obama what is formally known as Trade Promotion Authority. This limits the US legislative branch to simple Yes or No votes on trade agreements and ensures that deals hatched at the negotiating table are not unwound in Congress.

With Mr Obama poised to get that authority, the focus for negotiators is to resolve a handful of outstanding issues. The latest plan is for trade ministers to gather at a still secret location in the US in mid-July for a week-long meeting.

WHAT'S STILL OUTSTANDING?

The biggest elephants in the room relate to tariffs and politically-sensitive industries.

For 18 months the US and Japan, the two biggest economies involved, have been working out just how much tariffs will be reduced on products ranging from motor parts to beef and rice. A deal there is close to being done, negotiators say. But then, to the frustration of some other countries, Canada has yet to put its own offer on the table for sensitive areas such as its dairy sector.

Other sticking points include questions about intellectual property and how long certain pharmaceuticals should be protected from competition from generic drugs. Also, what sort of state-owned enterprises should be covered by the rules and what exclusions there might be for certain countries.

The good news, however, is that the difficult issues have not changed much in 18 months and everyone knows where the compromises are likely to land. Hence Andrew Robb, Australia's trade minister, last week declared with confidence: "We are literally one week of negotiation away from completing this extraordinary deal."

ANOTHER FIGHT IN CONGRESS AND OTHER PARLIAMENTS

Even if trade ministers are able to declare victory next month, the deal must still be ratified by all of the member countries' parliaments.

Under the legislation to be approved by Congress the Obama administration will have to publish the TPP text 60 days before the president signs the deal.

The administration's goal is to get the TPP back to Congress for approval before the end of the year and before the 2016 political campaigns heat up. Due to likely delays in Congress, officials say this is an ambitious target. Meanwhile, environmentalists, labour unions and other special-interest groups are gearing up to fight their corner.

AN EVEN BIGGER TPP

There are 12 countries in the TPP: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. Others such as Colombia, South Korea and Taiwan have already expressed an interest. The biggest potential member is China. After initially viewing the TPP with suspicion, Beijing has begun to soften its language. In a recent US radio interview Mr Obama said China had "already started putting out feelers about the possibilities of participating at some point".

Financial Times


***



Chân thành cám ơn Quý Anh Chị ghé thăm "conbenho Nguyễn Hoài Trang Blog".
Xin được lắng nghe ý kiến chia sẻ của Quý Anh Chị trực tiếp tại Diễn Đàn Paltalk: 1Latdo Tapdoan Vietgian CSVN Phanquoc Bannuoc . 
Kính chúc Sức Khỏe Quý Anh Chị . 



conbenho
Tiểu Muội quantu
Nguyễn Hoài Trang
25062015
___________
Cộng sản Việt Nam là TỘI ÁC
Bao che, dung dưỡng TỘI ÁC là ĐỒNG LÕA với TỘI ÁC