Today (15 Dec) the House Ways and Means Subcommittee on Trade held a hearing on the Trans-Pacific Partnership (TPP) agreement. The hearing focused on the progress of the negotiations, a timetable for conclusion, and possible new members. Witnesses at the hearing included:

The Chamber submitted a statement for the record detailing our support for the agreement and our desire to see the TPP include the highest possible standards for trade and investment.

For more information, please contact Catherine Mellor at cmellor@uschamber.com.

Below is a short summary of the recent developments in the TPP from the US Chamber of Commerce and our expectations for how the talks will progress over the next few months.

I. US Chamber Public Comments on Potential New Entrants

Three countries—Canada, Japan and Mexico—announced their desire to join the negotiations during the APEC Summit in Hawaii last month. The Chamber’s official position on new members is that we welcome the expansion of the TPP on the condition that i) new members are capable of meeting the high standards set for the agreement, and ii) their entry does not slow down the progress of the negotiation. We released the following press statements on the TPP while in Hawaii.

1. U.S. Chamber Says Japan’s Intention to Join TPP Sends Positive Message to Negotiations

2. U.S. Chamber Welcomes TPP Leaders' Statement as a 'Positive Step Forward'

A full copy of our press clips from the trip can be found here.

II. US Chamber to Respond to Federal Register Notices Requesting Comments on Potential New Entrants

The Administration has been proceeding with the TPP negotiations under the rules of Trade Promotion Authority (TPA), despite TPA having expired in 2007. As such, USTR has begun a consultation period with Canada, Japan and Mexico, which will lead up to the formal 90-day Congressional notification period. As part of this consultation, yesterday USTR published Federal Register notices requesting comments on each of the country’s interest in the TPP (Canada, Japan, and Mexico). The Chamber will be submitting individual statements for each country, and we will coordinate our input with the relevant AmChams. For reference, a copy of the submission we provided regarding Malaysia’s interest in the TPP last year is attached.

III. Negotiation Timeline

We do not have a clear indication of the duration of the “pre-90 day notification” period but some are speculating that it could take months. Much will depend on how willing the three countries are to adopt confidence-building measures that would demonstrate to the existing TPP partners that their entry into the talks would not derail the progress already achieved.

Leader’s declared in Hawaii that they reached the “broad outlines of an agreement” (i.e., they agreed on a consolidated text with varying degrees of completion in the individual chapters), but they did not commit to a deadline for conclusion in the official statement. President Obama stated at his press conference in Hawaii that the TPP Leader’s had “directed our teams to finalize this agreement in the coming year”, a sentiment which USTR Kirk echoed at a program hosted on the trade agenda by the U.S. Chamber last week.

The Chamber understands that the U.S. government is pushing for a robust schedule of negotiating rounds next year and has indicated that it would like to complete the text of an agreement by the June APEC Trade Ministers meetings in Russia. The first of two informal rounds is underway in Malaysia this week; the second will be held in the United States in late January or early February; and the first full round of negotiations will be held in March in Australia.

IV. The Need for TPA

At the Chamber program, USTR Kirk underscored that the White House would need the appropriate negotiating authority—i.e., Trade Promotion Authority (TPA)—to meet this objective. Some in the trade community have taken this statement to mean that the Administration is willing to put TPA on the Congressional agenda next year, notwithstanding concerns over the political feasibility of doing so in an election year. Some are speculating that the White House will push for a narrowly crafted TPA, specific only to the TPP. This could raise significant questions for the business community, which would prefer a broader TPA that allows pursuit of additional FTAs and other agreements.

V. Conclusion

Considering the public commitment President Obama has made to concluding an agreement in 2012, there is significant uncertainty over how new members might be brought into the negotiation. Some of the current TPP negotiating partners (including New Zealand Trade Minister Grosser) have suggested that the most practical path forward would be to complete the text with the current nine, and then move to a 9-1 negotiation with each new prospective member. This proposed “two-track” approach, it has been noted, would allow for a conclusion of an initial agreement by next year, while using the “consultation” phase to keep prospective members engaged in the process.

The Chamber does not have a position on the optimal process for expansion of the TPP. As noted in our press statements, we welcome the expression of interest by all new members to the TPP as long as they are able to meet the high standard and keep the momentum of the current negotiation moving forward.

The U.S. Chamber will continue to play a leadership role in all aspects of the TPP consultation and policy advocacy processes in Washington.

Ninth round of Trans-Pacific Partnership Agreement (TPP) negotiations

The ninth round of TPP negotiations concluded on 28 October in Lima, Peru. The 10 day round had around 870 delegates in attendance, including negotiators, stakeholders and media.

Progress continued to be made on the text of the agreement, with significant progress made in a number of chapters including Sanitary and Phytosanitary (SPS) issues, Technical Barriers to Trade (TBT) and Rules of Origin (ROOs). A new proposal on State Owned Enterprises (SOEs) was tabled, which will be discussed in the Competition Policy working group. Virtually all text is now on the table, though a further proposal on labour issues is expected in the near future. Significant progress was also made in discussions on provisions that seek to ensure the benefits of the agreement are accessible to SMEs, improve regulatory coherence in the region, further develop regional competitiveness and supply chains, and that recognise the development priorities of the nine parties.

There was steady progress in the market access negotiations on goods, services and investment, and government procurement. Parties plan to prepare revised offers based on these discussions and requests made for improvements in specific areas, continuing the process of building an ambitious market access outcome.

There are a number of sensitive and complex proposals on the table, including on intellectual property and transparency. While parties are engaging constructively, these issues will take time to reach an outcome that satisfies all nine parties. It should be noted that any TPP member is at liberty to make any proposal it chooses but a proposal is simply that - text proposals have no status unless agreed by all the parties.

This round was the last round before TPP Ministers and Leaders meet during the APEC Summit in Hawaii. In their meetings, Ministers and Leaders will review the progress of the negotiations and offer guidance to negotiators moving forward. We will provide further information on the outcomes of the meetings on the DFAT website in due course.

Australian negotiators also attended the stakeholder forum hosted by the Peruvian Government on Sunday 23 October. Stakeholders presented on issues such as intellectual property, investment, environmental issues, and how textiles will be handled in the agreement.

During the round, Australian officials from the Department of Foreign Affairs and Trade, Austrade and the Department of Agriculture, Forestry and Fisheries, presented at a forum hosted by PromPeru (Peru’s export development agency) to highlight the potential benefits of the agreement to the export community. Australia’s presentations covered our customs and quarantine regimes, and the Peru-Australia trade relationship.

The Australian Department of Foreign Affairs and Trade has confirmed that Melbourne will be the venue for the next full round of TPP negotiations in early March.

Next step in Trans-Pacific Partnership agreement

Agreement on the broad outlines of the Trans-Pacific Partnership (TPP) is an important step towards a high-quality free-trade deal that will benefit New Zealand exporters, Deputy Prime Minister Bill English and Trade Minister Tim Groser say.

Leaders of the nine countries in the Trans-Pacific Partnership (TPP) today agreed on the broad outlines of the free trade agreement, at a meeting hosted by US President Barack Obama in Honolulu on the fringes of the APEC summit. Mr English represented New Zealand on behalf of Prime Minister John Key.

“New Zealand’s trade with the Asia-Pacific region has been growing rapidly in recent years, with Australia and Asia now taking over 60 per cent of our exports,” Mr English says.

“However, our exporters still face barriers in many markets. Reducing those barriers and increasing access for our exports is one of the most important ways we can sell more of our goods to the rest of the world and build a faster growing economy.

“Today’s announcement is an important milestone. It signals the broad outlines of the agreement – including progressive tariff elimination and an end point of full market access – and a strong political commitment from leaders.

“Following Japan’s decision to seek to join the TPP, this creates a real sense of momentum around negotiations. Our message to our negotiators is that we want to convert that momentum into results,” Mr English says.

Leaders endorsed a report from TPP Trade Ministers setting out details of results of the negotiation to date and the next steps.

“The report from trade ministers - endorsed today - represents a great outcome for New Zealand’s interests,” Mr Groser says.

“The bottom line is that leaders are committed to a high-quality agreement – this negotiation is genuinely about free trade and getting trade rules that work for exporters.

“Today’s statements establish an excellent platform to propel the TPP negotiations towards our goal of a high-quality 21st century trade agreement,” Mr Groser says.

The next step will be more detailed negotiations on each of the areas set out in today’s statements. Negotiators will meet again in early December and have been instructed to schedule further negotiating rounds for 2012.

The three documents released today are attached:

· A statement by the Leaders of the nine TPP countries.
· A report on the negotiation from TPP Trade Ministers, which Leaders today endorsed.
· A background paper with additional detail on key features of TPP and content of main chapters or subject areas.

Related Documents

TPP broad outlines (pdf 111.12 KB)
TPP Leaders Statement (pdf 50.17 KB)
TPP Ministers Report to Leaders (pdf 61.65 KB)

ENHANCING TRADE AND INVESTMENT, SUPPORTING JOBS, ECONOMIC GROWTH AND DEVELOPMENT:
OUTLINES OF THE TRANS-PACIFIC PARTNERSHIP AGREEMENT

On November 12, 2011, the Leaders of the nine Trans-Pacific Partnership countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States – announced the achievement of the broad outlines of an ambitious, 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs.

The agreement’s broad framework is as follows:

Key Features

In reporting to Leaders on the achievement of the broad outlines of an agreement, the Trade Ministers identified five defining features that will make TPP a landmark, 21st-century trade agreement, setting a new standard for global trade and incorporating next-generation issues that will boost the competitiveness of TPP countries in the global economy.

o Comprehensive market access: to eliminate tariffs and other barriers to goods and services trade and investment, so as to create new opportunities for our workers and businesses and immediate benefits for our consumers.

o Fully regional agreement: to facilitate the development of production and supply chains among TPP members, supporting our goal of creating jobs, raising living standards, improving welfare and promoting sustainable growth in our countries.

o Cross-cutting trade issues: to build on work being done in APEC and other fora by incorporating in TPP four new, cross-cutting issues. These are:

- Regulatory coherence. Commitments will promote trade between the countries by making trade among them more seamless and efficient.

- Competitiveness and Business Facilitation. Commitments will enhance the domestic and regional competitiveness of each TPP country’s economy and promote economic integration and jobs in the region, including through the development of regional production and supply chains.

- Small- and Medium-Sized Enterprises. Commitments will address concerns small- and medium-sized enterprises have raised about the difficulty in understanding and using trade agreements, encouraging small- and medium-sized enterprises to trade internationally.

- Development. Comprehensive and robust market liberalization, improvements in trade and investment enhancing disciplines, and other commitments, including a mechanism to help all TPP countries to effectively implement the Agreement and fully realize its benefits, will serve to strengthen institutions important for economic development and governance and thereby contribute significantly to advancing TPP countries’ respective economic development priorities.

o New trade challenges: to promote trade and investment in innovative products and services, including related to the digital economy and green technologies, and to ensure a competitive business environment across the TPP region.

o Living agreement: to enable the updating of the agreement as appropriate to address trade issues that emerge in the future as well as new issues that arise with the expansion of the agreement to include new countries.

Scope

• The agreement is being negotiated as a single undertaking that covers all key trade and trade-related areas. In addition to updating traditional approaches to issues covered by previous free trade agreements (FTAs), the TPP includes new and emerging trade issues and cross-cutting issues.

• More than twenty negotiating groups have met over nine rounds to develop the legal texts of the agreement and the specific market access commitments the TPP countries will make to open their markets to each others’ goods, services, and government procurement.

• All of the nine countries also have agreed to adopt high standards in order to ensure that the benefits and obligations of the agreement are fully shared. They also have agreed on the need to appropriately address sensitivities and the unique challenges faced by developing country members, including through trade capacity building, technical assistance, and staging of commitments as appropriate.

• A set of new, cross-cutting commitments are intended to reduce costs, enable the development of a more seamless trade flows and trade networks between TPP members, encourage the participation of small- and medium-sized enterprises in international trade, and promote economic growth and higher living standards.

• The negotiating teams have proposed new commitments on cross-cutting issues in traditional chapters and also have made substantial progress toward agreement on separate, stand-alone commitments to address these issues.

Legal Texts

• The negotiating groups have developed consolidated legal text in virtually all negotiating groups. In some areas, text is almost complete; in others, further work is needed to finalize text on specific issues. The texts contain brackets to indicate where differences remain.

• The legal texts will cover all aspects of commercial relations among the TPP countries. The following are the issues under negotiation and a summary of progress.

o Competition. The competition text will promote a competitive business environment, protect consumers, and ensure a level playing field for TPP companies. Negotiators have made significant progress on the text, which includes commitments on the establishment and maintenance of competition laws and authorities, procedural fairness in competition law enforcement, transparency, consumer protection, private rights of action and technical cooperation.

o Cooperation and Capacity Building. The TPP countries agree that capacity building and other forms of cooperation are critical both during the negotiations and post-conclusion to support TPP countries’ ability to implement and take advantage of the agreement. They recognize that capacity building activities can be an effective tool in helping to address specific needs of developing countries in meeting the high standards the TPP countries have agreed to seek. In this spirit, several cooperation and capacity building activities have already been implemented in response to specific requests and additional activities are being planned to assist developing countries in achieving the objectives of the agreement. The TPP countries also are discussing specific text that will establish a demand-driven and flexible institutional mechanism to effectively facilitate and cooperation and capacity building assistance after the TPP is implemented.

o Cross-Border Services. TPP countries have agreed on most of the core elements of the cross-border services text. This consensus provides the basis for securing fair, open, and transparent markets for services trade, including services supplied electronically and by small- and medium-sized enterprises, while preserving the right of governments to regulate in the public interest.

o Customs. TPP negotiators have reached agreement on key elements of the customs text as well as on the fundamental importance of establishing customs procedures that are predictable, transparent and that expedite and facilitate trade, which will help link TPP firms into regional production and supply chains. The text will ensure that goods are released from customs control as quickly as possible, while preserving the ability of customs authorities to strictly enforce customs laws and regulations. TPP countries also have agreed on the importance of close cooperation between authorities to ensure the effective implementation and operation of the agreement as well as other customs matters.

o E-Commerce. The e-commerce text will enhance the viability of the digital economy by ensuring that impediments to both consumer and businesses embracing this medium of trade are addressed. Negotiators have made encouraging progress, including on provisions addressing customs duties in the digital environment, authentication of electronic transactions, and consumer protection. Additional proposals on information flows and treatment of digital products are under discussion.

o Environment. A meaningful outcome on environment will ensure that the agreement appropriately addresses important trade and environment challenges and enhances the mutual supportiveness of trade and environment. The TPP countries share the view that the environment text should include effective provisions on trade-related issues that would help to reinforce environmental protection and are discussing an effective institutional arrangement to oversee implementation and a specific cooperation framework for addressing capacity building needs. They also are discussing proposals on new issues, such as marine fisheries and other conservation issues, biodiversity, invasive alien species, climate change, and environmental goods and services.

o Financial Services. The text related to investment in financial institutions and cross-border trade in financial services will improve transparency, non-discrimination, fair treatment of new financial services, and investment protections and an effective dispute settlement remedy for those protections. These commitments will create market-opening opportunities, benefit businesses and consumers of financial products, and at the same time protect the right of financial regulators to take action to ensure the integrity and stability of financial markets, including in the event of a financial crisis.

o Government Procurement. The text of the Government Procurement Chapter will ensure that procurement covered under the chapter is conducted in a fair, transparent, and non-discriminatory manner. The TPP negotiators have agreed on the basic principles and procedures for conducting procurement under the chapter, and are developing the specific obligations. The TPP partners are seeking comparable coverage of procurement by all the countries, while recognizing the need to facilitate the opening of the procurement markets of developing countries through the use of transitional measures.

o Intellectual Property. TPP countries have agreed to reinforce and develop existing World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) rights and obligations to ensure an effective and balanced approach to intellectual property rights among the TPP countries. Proposals are under discussion on many forms of intellectual property, including trademarks, geographical indications, copyright and related rights, patents, trade secrets, data required for the approval of certain regulated products, as well as intellectual property enforcement and genetic resources and traditional knowledge. TPP countries have agreed to reflect in the text a shared commitment to the Doha Declaration on TRIPS and Public Health.

o Investment. The investment text will provide substantive legal protections for investors and investments of each TPP country in the other TPP countries, including ongoing negotiations on provisions to ensure non-discrimination, a minimum standard of treatment, rules on expropriation, and prohibitions on specified performance requirements that distort trade and investment. The investment text will include provisions for expeditious, fair, and transparent investor-State dispute settlement subject to appropriate safeguards, with discussions continuing on scope and coverage. The investment text will protect the rights of the TPP countries to regulate in the public interest.

o Labor. TPP countries are discussing elements for a labor chapter that include commitments on labor rights protection and mechanisms to ensure cooperation, coordination, and dialogue on labor issues of mutual concern. They agree on the importance of coordination to address the challenges of the 21st-century workforce through bilateral and regional cooperation on workplace practices to enhance workers’ well-being and employability, and to promote human capital development and high-performance workplaces.

o Legal Issues. TPP countries have made substantial progress on provisions concerning the administration of the agreement, including clear and effective rules for resolving disputes and are discussing some of the specific issues relating to the process. TPP countries also have made progress on exceptions from agreement obligations and on disciplines addressing transparency in the development of laws, regulations, and other rules. In addition, they are discussing proposals related to good governance and to procedural fairness issues in specific areas.

o Market Access for Goods. The TPP countries have agreed to establish principles and obligations related to trade in goods for all TPP countries that ensure that the market access that they provide to each other is ambitious, balanced, and transparent. The text on trade in goods addresses tariff elimination among the partners, including significant commitments beyond the partners’ current WTO obligations, as well as elimination of non-tariff measures that can serve as trade barriers. The TPP partners are considering proposals related to import and export licensing and remanufactured goods. Additional provisions related to agricultural export competition and food security also are under discussion.

o Rules of Origin. TPP countries have agreed to seek a common set of rules of origin to determine whether a product originates in the TPP region. They also have agreed that TPP rules of origin will be objective, transparent and predictable and are discussing approaches regarding the ability to cumulate or use materials from within the free trade area in order to make a claim that a product is originating. In addition, the TPP countries are discussing the proposals for a system for verification of preference claims that is simple, efficient and effective.

o Sanitary and Phytosanitary Standards (SPS). To enhance animal and plant health and food safety and facilitate trade among the TPP countries, the nine countries have agreed to reinforce and build upon existing rights and obligations under the World Trade Organization Agreement on the Application of Sanitary and Phytosanitary Measures. The SPS text will contain a series of new commitments on science, transparency, regionalization, cooperation, and equivalence. In addition, negotiators have agreed to consider a series of new bilateral and multilateral cooperative proposals, including import checks and verification.

o Technical Barriers to Trade (TBT). The TBT text will reinforce and build upon existing rights and obligations under the World Trade Organization Agreement on Technical Barriers, which will facilitate trade among the TPP countries and help our regulators protect health, safety, and the environment and achieve other legitimate policy objectives. The text will include commitments on compliance periods, conformity assessment procedures, international standards, institutional mechanisms, and transparency. The TPP countries also are discussing disciplines on conformity assessment procedures, regulatory cooperation, trade facilitation, transparency, and other issues, as well as proposals that have been tabled covering specific sectors.

o Telecommunications. The telecommunications text will promote competitive access for telecommunications providers in TPP markets, which will benefit consumers and help businesses in TPP markets become more competitive. In addition to broad agreement on the need for reasonable network access for suppliers through interconnection and access to physical facilities, TPP countries are close to consensus on a broad range of provisions enhancing the transparency of the regulatory process, and ensuring rights of appeal of decisions. Additional proposals have been put forward on choice of technology and addressing the high cost of international mobile roaming.

o Temporary Entry. TPP countries have substantially concluded the general provisions of the chapter, which are designed to promote transparency and efficiency in the processing of applications for temporary entry, and ongoing technical cooperation between TPP authorities. Specific obligations related to individual categories of business person are under discussion.

o Textiles and Apparel. In addition to market access on textiles and apparel, the TPP countries also are discussing a series of related disciplines, such as customs cooperation and enforcement procedures, rules of origin and a special safeguard.

o Trade Remedies. TPP countries have agreed to affirm their WTO rights and obligations and are considering new proposals, including obligations that would build upon these existing rights and obligations in the areas of transparency and procedural due process. Proposals also have been put forward relating to a transitional regional safeguard mechanism.

Tariff Schedules and Other Market-Opening Packages

• The TPP tariff schedule will cover all goods, representing some 11,000 tariff lines. The nine countries also are developing common TPP rules of origin, and are weighing proposals now for how to do this most effectively and simply.

• Services and investment packages will cover all service sectors. To ensure the high-standard outcome the nine countries are seeking, the TPP countries are negotiating on a “negative list” basis, which presumes comprehensive coverage but allows countries to negotiate specific exceptions to commitments in specific service sectors.

• Government procurement packages are being negotiated with each country seeking to broaden coverage to ensure the maximum access to each others’ government procurement markets, while recognizing each others’ sensitivities.

Next Steps

• Leaders of the nine TPP countries have instructed negotiators to meet in early December, and at that time to schedule additional negotiating rounds.

Final readout of Trans-Pacific Partnership Negotiations in Chicago, IL

from USTR

Today at the eighth round of Trans-Pacific Partnership negotiations in Chicago, IL, two remaining negotiating groups held talks on non-conforming measures and trade remedies.

The round concludes today after 10 days of intensive and fruitful talks. This has been a productive round with progress made toward the goal of concluding an ambitious, 21st-century agreement that will enhance trade and investment among the TPP partner countries and support economic growth and development and support the creation and retention of jobs.

Negotiators sought to make progress on the legal texts of the more than 20 chapters of the agreement this week. With additional text put forward this round, there are now consolidated texts in most areas. Many chapters, including Customs, Technical Barriers to Trade, Telecommunications, Government Procurement, and the horizontal or 21st-century issues of small- and medium-sized enterprises, regulatory coherence, competitiveness, and development, are moving toward closure. Progress was also made on texts for somewhat longer and more complex chapters such as Intellectual Property and Investment.

Negotiators also sought to make progress on the packages for access to industrial, agricultural, and textile and apparel products as well as to government procurement markets. These detailed negotiations require agreement by each country on trade on some 11,000 tariff lines, as well as the rules of origin associated with them; trade and investment in all service sectors, from telecommunications and financial services to energy, professional and distribution services; and reciprocal access to each others’ government procurement markets. Progress was made, but the TPP teams are still looking for improvements in the packages to achieve the high level of ambition envisioned.

In some areas, further text will be tabled in the coming weeks, including text the United States is preparing on labor and state-owned enterprises. In the meantime, the labor and competition groups’ robust discussions in Chicago will ease the path forward when text is tabled.

More than 250 stakeholders accepted the U.S. Government’s invitation to be on-site at the talks this week. U.S. Trade Representative Ron Kirk and Chicago Mayor Rahm Emanuel addressed stakeholders on Friday evening; on Saturday, 57 stakeholder groups made presentations to TPP negotiators.

Steady Progress at the Seventh Trans-Pacific Partnership (TPP) Round

WASHINGTON, D.C. – The United States and its TPP partners – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam – concluded the seventh round of negotiations today in Ho Chi Minh City, Vietnam, making further step-by-step progress toward their goal of reaching the outlines of an ambitious, 21st century agreement by the APEC Leaders’ meeting in November.

As at the previous round in Singapore, the TPP countries extended the length of the round in Vietnam to ensure the teams had sufficient time to make meaningful progress in all areas of the negotiation. The additional time was helpful in producing the good progress that was achieved in further developing the detailed legal texts of the agreement, which encompass all areas of their commercial relationships. During the week, the countries reviewed new proposals that the United States and other TPP countries tabled this round; including on intellectual property, transparency, telecommunications, customs, environment; and advanced their efforts to consolidate the various proposals that the countries put forward in previous rounds. They also sought to further clarify their understanding of each other’s positions and continued the rigorous process of finding mutually-acceptable ways to address the specific sensitivities of each country.

Among the issues on which the teams had particularly productive discussions were the new cross-cutting issues that will feature for the first time in the TPP. After consulting internally on the U.S. text tabled at the sixth round, they furthered their efforts to find common ground on the regulatory coherence text intended to make the regulatory systems of their countries operate in a more consistent and seamless manner and avoid the types of regulatory barriers that are increasingly among the key obstacles to trade. The teams also had constructive discussions on approaches to development in the TPP and the importance of ensuring that the agreement serves to close the development gap among TPP members.

While making continued progress on the texts across all the negotiating groups, the nine teams also furthered their work on the accompanying commitments on access to each other’s markets for goods, services, and government procurement. They made further headway in Vietnam in their discussions on services, investment, and government procurement, and on product specific rules of origin. They also discussed their respective requests and offers on industrial goods, agriculture, and textiles, working to close gaps in their positions. The nine teams reviewed in detail each country’s offers and possible approaches to achieving their common goals of producing the most ambitious package possible, supporting the creation and retention of jobs, and promoting regional integration.

In order to accelerate the process, the TPP countries agreed to redouble their efforts in the months ahead. They agreed to intensify their interssessional work, including consulting on existing proposals internally, providing revised offers on the various market access areas, and working to develop proposals to address outstanding issues. In addition, the teams agreed to identify issues on which to focus at the next round in the United States in early September, and to seek to reach agreement on as many of those issues as possible at the next round. To begin this work, several members of the U.S. negotiating team will travel to Hanoi, Vietnam and Kuala Lumpur, Malaysia next week. The U.S. team also is working to prepare additional legal text by the next round, and as it does so it will continue consulting closely with Congress and stakeholders.

Prior to the start of the formal negotiating round, Vietnam hosted 140 stakeholders representing business, civil society, and academic groups. Stakeholders from the United States and other TPP countries made presentations on a wide range of issues. On June 23, the Vietnamese delegation hosted a workshop to discuss Vietnam’s labor law and the efforts it has underway to strengthen the labor code and trade union law.

TPP Talk from MFAT

Stakeholders Voice Views in Viet Nam 20 June 2011 by Sarah Lovegrove

There was a strong turnout for the TPP Stakeholder Forum in Viet Nam yesterday. Presentations ranged from business perspectives on specific commercial and regulatory issues through to NGO concerns about impacts on social policies. Read the rest.....

Pharmaceutical Issues Comment 17 June 2011 by Mark Sinclair

In recent weeks we have received a number of enquiries about New Zealand's Pharmaceutical Management Agency, or PHARMAC, and the TPP. Read the rest.....

TPP Strategy Stock Take 17 June 2011 by Mark Sinclair

Trade Minister Tim Groser gave a “stock take” of the political strategy behind the Trans-Pacific Partnership negotiations to a New Zealand Institute of International Affairs-organised event this week.

Read the rest.....

The Value of Investment 13 June 2011 by Elizabeth Dixon

Investment is one of the areas of the Trans-Pacific Partnership (TPP) negotiation that attracts the most interest. We have had questions and views on investment issues from a number of people since the negotiation was launched. Some people have views about the general value of investment rules in trade agreements. Read the rest.....

TPP Web column launched

MFAT has launched a web column to open up the conversation around the Trans-Pacific Partnership free trade agreement negotiations.

The column will be written from the perspective of the New Zealand negotiating team but will also highlight major pieces of commentary on TPP, including from critics.

While the team cannot talk about other countries’ negotiating positions or release negotiating texts, the column will aim to provide fuller information on New Zealand’s approach and the reasons behind it, as well as set the record straight where possible.

Joint Statement in Support of TPP – March 2011

Agreement on Trans-Pacific Partnership framework makes for a secure and mutually beneficial trade environment, benefitting businesses within and beyond APEC’s 21 member economies In Singapore, the American Chamber of Commerce, the Australian Chamber of Commerce, the New Zealand Chamber of Commerce, and the Singapore Business Federation issue this joint statement in support of the ongoing negotiations resulting in a large and robust Trans-Pacific Partnership (TPP) framework being reached by the 2011 APEC Leaders Meeting in Hawaii this Nov.

Being based in Singapore, we are first hand witnesses to the speed at which Asian economies are emerging from the global economic downturn. There are more than 40 bilateral trade agreements that operate across APEC; however, diverging rules and benefits make it difficult for companies implanted in the region to develop coherent business plans. A firm and increasing commitment to the Asia-Pacific region via TPP negotiations will allow companies to eliminate duplicative and unnecessary barriers, disseminate regional and international best practices and enhance our connectivity to most of the world’s fastest-growing economies, hence making it a secure and mutually beneficial trade environment .

Obtaining such a high-standard outcome, with strong and binding enforcement mechanisms, is important not only with respect to the countries already at the negotiating table – Australia , Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam – but also to ensure that the TPP lays the foundation for further economic integration in the Asia-Pacific region in an effective step-by-step manner. The rules that the TPP sets now will set the template for the

regional trading relationship for decades to come.

As a 21st-century agreement, the TPP can address today’s needs on transparency, competition policy, intellectual property issues, and government procurement regulations .The TPP would then become a “groundbreaking” free trade agreement by addressing the traditional elements of trade agreements such as tariffs while also addressing the behind-the-border barriers that are bottlenecks to global trade. The TPP can also address newly emerging trade issues such as supply chain connectivity, regulatory coherence, innovation, and SME development. Such an agreement would underpin the goal of inclusive growth where all participating countries and citizens of all levels benefit.

We believe strongly that successful TPP negotiations are vital to create new opportunities for our industries and our workers in the years and decades to come in the fast-growing Asia-Pacific region. Supporting the TPP, particularly in the current economic climate, is more crucial than ever. Governments must demonstrate that maintaining and increasing free trade is at the top of their agendas. With its cross-regional nature, the TPP can become a pillar of Asia-Pacific identity and common understanding. As Asian economies emerge from the global economic downturn at a much faster rate than the traditional economic powerhouses, a firm and increasing commitment to the TPP will keep partner countries connected within the world’s fastest-growing region.

On behalf of our combined 17,000 companies representing billions of dollars of investments in Singapore and the region, we strongly advocate that the Trans-Pacific Partnership negotiations be at the top of our respective governments’ agendas.

TPP talks due to start in mid March

With the first round of Trans Pacific Partnership talks due to start on mid March in Melbourne; AmCham is looking to pull together interest groups to follow the negotiations and to provide input.

Recently AmCham arranged a roundtable meeting for U.S. Ambassador David Huebner to meet with US pharmaceutical companies and AmCham members in this sector.

The talks will cover key areas of Investment, IP, GMO‘s, Resource Access, Environment, Labour and Regulatory frameworks. Companies that have an interest in these areas should contact Mike Hearn to register their interest. Mike@amcham.co.nz

Behind the scenes the US Chamber has been busy, beginning early this year. The business community has come together to form an informal TPP coalition which is being led cooperatively by a number of the associations in town. In addition to the Chamber, the Emergency Committee for American Trade, the National Foreign Trade Council, the ASEAN Business Council, the Coalition of Service Industries and others make up the leadership of the group. They have met a couple of times together with our collective corporate members, USTR, and the trade counselors of the TPP embassies. The goal of this group is to organize our expertise as we prepare for negotiations. They have created working groups which meet regularly with USTR staff on issues such as regulatory coherence, investment, transparency, services etc. The other purpose of the group is to avoid duplication in our outreach and advocacy work.

APCAC (Asia Pacific Council of American Chambers) sent comments to USTR as well as sending a letter to President Obama prior to the APEC meetings in November, urging his administration to support TPP. They have been working with AmCham China to ensure that the program for the Spring APCAC meeting has a regional dimension to discuss TPP and other trade issues of broad interest beyond China. They plan to issue an APCAC Report and set of recommendations at the Spring meeting, and it will highlight their support for TPP.

Steve Okun, who is chairman of AmCham Singapore, has done a masterful job of coordinating with the

Singapore offices of the various chamber organizations involved in TPP, and orchestrated a communication to the Obama Administration supporting TPP prior to APEC, and also submitted comments on TPP.

American Chamber of Commerce welcomes US P4 Negotiations

The American Chamber of Commerce in New Zealand (AmCham) welcomes the news that the US has announced the launch of negotiations regarding their inclusion in the comprehensive Trans-Pacific Strategic Economic Partnership Agreement.

This is the most significant advance in US-NZ relations for several years and is the result of concerted efforts by both Government and Business over a significant period of time.

AmCham has been actively pursuing a Free Trade Agreement (FTA) with the US for over a decade, regularly visiting Washington to lobby both the US Administration and Congress.

Earlier this year, AmCham hosted lead trade negotiator for the US Barbara Wisel, who was in New Zealand for P4 Negotiations. The meeting acted as a key opportunity to provide Ms Wisel with feedback from US businesses in New Zealand.

Bilateral trade is currently worth $8.23 billon, accounting for about 10% of New Zealand?s total trade and bilateral FDI is $10 billion, ranking the US as New Zealand?s second largest trading partner. Research undertaken several years ago suggested that an FTA with the USA could increase bilateral trade & investment by as much as 25% with significant positive effects to the economy.

AmCham will be working closely with its counterparts in Singapore & Chile to advance businesses interests and will be back in Washington in 2009 to work with the new Administration towards achieving the agreement.

Continued Progress at Fifth Trans-Pacific Partnership (TPP) Round

From USTR

The United States and its TPP partners – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam – concluded the fifth round of Trans-Pacific Partnership (TPP) negotiations in Santiago, Chile today, marking continued progress toward the goal of developing a high-standard, 21st-century trade agreement.

Having exchanged initial tariff offers in January, the teams from the nine TPP countries began goods negotiations in Santiago, agreeing to exchange lists of requests for improvements in these initial offers next month ahead of the sixth round. The partners also agreed to exchange initial offers on services and investment and initial offers on government procurement before the next round. In addition, the teams began consideration of how best to develop a TPP rule of origin, which will help support development of a regional trade agreement, and agreed to exchange proposed product-specific rules of origin in March.

TPP countries made further progress in developing the agreement’s legal texts, which will spell out the rights and obligations each country will take on and that will cover all aspects of trade and investment relationships. The teams carefully reviewed the text proposals made by each country, ensuring understanding of each other’s proposals so negotiations could advance. With consolidated negotiating texts in most areas, partners began seeking to narrow differences and to consider the interests and concerns of each country.

TPP partners also further developed approaches addressing the new cross-cutting issues that will be incorporated into the agreement, including a proposal for promoting competitiveness and facilitating business; how to promote the participation of small- and medium-sized businesses in international trade; deepening the production and supply chain linkages between TPP countries; enhancing the coherence of the regulatory systems of TPP countries to facilitate trade; and promoting development.

As in previous rounds, the teams received input from a wide range of representatives of business, civil society and other stakeholder groups on a variety of issues. The labor delegations attended a seminar on Chilean labor law and practice, with presentations by government officials, trade unions, and industry. The sanitary and phyto-sanitary group participated in a seminar on electronic certification and risk-based inspection programs, with presentations by Australian, Chilean, and U.S. officials. In addition, the technical barriers to trade team participated in a seminar on non-tariff barriers, including in the organic sector.

Reflecting the direction of the nine TPP Leaders for the TPP negotiators to conclude as expeditiously as possible, the teams agreed to intensify their work, planning an ambitious agenda ahead of the next negotiating round in Singapore in late March and agreeing to extend the length of the round so negotiators would have more time to make progress in each group. As it prepares for the sixth round, the U.S. team will continue its close and detailed consultations with Congress and stakeholders in order to ensure that the TPP Agreement deals with the issues U.S. businesses and workers are facing in the 21st century and reflects U.S. values.