News / Economy

After WTO, Expectations Rise for Trans-Pacific Trade Deal

Trade ministers and representatives attend the Trans-Pacific Partnership (TPP) Ministerial Meeting in Singapore, Dec. 7, 2013.
Trade ministers and representatives attend the Trans-Pacific Partnership (TPP) Ministerial Meeting in Singapore, Dec. 7, 2013.
Reuters
Expectations are growing that an ambitious trade pact between a dozen nations around the Pacific Rim may be wrapped up in two to three months, with signs that political desire for a deal is trumping a string of technical difficulties in drawing it up.
 
Just days after the first World Trade Organization trade reform deal was pushed through on Saturday, trade ministers from 12 countries are in closed-door talks in a Singapore hotel to try to wrap up the Trans-Pacific Partnership (TPP).
 
An agreement would establish a free-trade bloc stretching from Vietnam to Chile and Japan, encompassing some 800 million people and almost 40 percent of the global economy. More far-reaching than other deals, it would go beyond tariffs on physical trade and try to regulate sensitive areas, such as government procurement, and give companies more rights to sue governments.
 
Just a few months ago a deal looked a long way off, with Japan only entering into the talks in July and many countries at odds over issues ranging from tariffs on farm produce to rules on Internet freedom and state-owned enterprises.
 
However, a push by the United States to try to reach some kind of agreement by the end of the year looks as if it may be starting to pay off. Japan's trade minister Yasutoshi Nishimura told reporters on Monday that progress was made during talks over dinner on Sunday, and observers say plenty of pre-work for the TPP talks went on during last week's WTO meeting in Bali.
 
“I would like to continue to make efforts toward an agreement by the year-end,” Nishimura said, adding that he planned to hold bilateral talks with the United States later on Monday.
 
Observers say that while an agreement in Singapore by the time the four days of talks end on Tuesday is unlikely, there could be enough impetus to conclude a deal within the next couple of months, even if many technical issues are not finalized.
 
“If they're close enough on the political issues, they could announce a sort of political agreement and say 'we're done', and the last little bits will be resolved on their own,” said Deborah Elms, head of the Temasek Foundation Center for Trade & Negotiations.
 
Sacred Products
 
One sticking point has been Japan's long-stated aim to exempt five politically sensitive farm products - rice, wheat, beef and pork, dairy products and sugar - from the scrapping of tariffs.
 
Nishimura said they are unlikely to move far on that issue. “I've already mentioned the parts we can't budge on, so the issue is what both sides can do based on that,” he said, referring to the bilateral talks between Japan and the U.S. “For my part, I would like the United States to show flexibility.”
 
The TPP negotiations, which have run for three years, have been mired in controversy over a lack of transparency, and slowed by the conflicting interests of the negotiating countries, U.S. lawmakers and advocacy groups.
 
No draft of the entire text has been released - a move criticized by campaigners, who say they are being kept in the dark about what's at stake. A leak of a draft chapter on intellectual property, released by Wikileaks last month, revealed a number of serious rifts among the countries, which would have suggested a deal was some way off. However, observers say political maneuvering is likely to see the deal ultimately pushed through.
 
“We are not in a rational zone, we are in a political zone and this agreement has increasingly become one about foreign policy issues and strategic alliances, and making the least worst trade-offs to achieve a final agreement,” said Jane Kelsey, a law professor at the University of Auckland, who is in Singapore to try to observe the talks.
 
The U.S. has also faced roadblocks at home, with Congress complaining about a lack of consultation over the deal and opposing proposed new legislation that would give the White House a freer hand to clinch such trade agreements. Even if a deal is reached within the next few months, it's likely to be some time until it comes into effect.
 
With the U.S. government lacking the ability to “fast track” approval of the deal and mid-term elections coming up next year, it may not be put before Congress for approval until November at the earliest.
 
“Best case scenario is July 1, 2015, and probably more likely is January 1, 2016 for this to come into force,” said Elms at the Temasek Foundation Center.
 
The agreement could also be expanded - last month, South Korea said it planned to join the 12-nation talks soon, while there is also a possibility that China could eventually enter the talks as well.
 
The full list of nations already in the talks is: the United States, Canada, Japan, Australia, New Zealand, Singapore, Malaysia, Brunei, Vietnam, Chile, Mexico and Peru.

You May Like

As US Strikes Syria, China Sees Parallels at Home

Beijing is debating how much support to give international coalition against IS militants and trying to figure out how many Chinese nationals may have joined group overseas More

CDC: Ebola Could Infect 1.4 M by 2015

US health officials say if efforts to curb the outbreak are not increased, cases will soar dramatically by early next year More

Video USAID Provides $231 Million for Girls Education in 5 Countries

US Agency for International Development partners with celebrities to call attention to importance of education for girls worldwide More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Washington to Pyongyang: 'Shut This Evil System Down'i
X
Scott Stearns
September 23, 2014 10:52 PM
U.S. Secretary of State John Kerry is calling on North Korea to shut down prison camps and other human rights abuses following a United Nations Commission of Inquiry into "widespread and systematic human rights violations." VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Washington to Pyongyang: 'Shut This Evil System Down'

U.S. Secretary of State John Kerry is calling on North Korea to shut down prison camps and other human rights abuses following a United Nations Commission of Inquiry into "widespread and systematic human rights violations." VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video US, Gulf Allies Strike Islamic State Militants in Syria

United States forces have carried out strikes against Islamic State or ISIL militant positions in Syria - the first time Western forces have taken action on Syrian soil. Five U.S. allies from the Gulf joined the military action. Local reports suggest dozens of militants were killed. The U.S. also carried out unilateral missile strikes against a Syria-based terror group which Washington says poses an imminent threat to the West. Henry Ridgwell reports from London.
Video

Video High Intensity Focused Ultrasound Used to Kill Cancer Tumor

There is a new way of killing certain cancer tumors that allows the patient to go home on the same day. Surgeons at the Keck Medical Center of the University of Southern California became the first doctors to use this procedure on a patient with the help of high intensity focused ultrasound, or HIFU, and new robotic technology. Elizabeth Lee reports from Los Angeles.
Video

Video USAID Provides $231 Million for Girls Education in Five Countries

Hollywood stars Alicia Keys, Jennifer Garner and 30 others have voiced their support for a U.S.-backed initiative called "Let Girls Learn." The $231 million program, funded by the U.S. Agency for International Development, is aimed at ensuring public and quality education for girls worldwide. As VOA's Mariama Diallo reports, this new program will focus on five countries in Africa, South Asia, Latin America and the Middle East.
Video

Video UN: Relocation of Bedouins in Israel Weakens Two-state Solution

Rural Bedouins living in disputed lands east of Jerusalem could soon find themselves forcibly relocated. VOA's Sharon Behn reports from Jerusalem that while Israel defends the move as in the Bedouins’ best interests, the United Nations says the plan threatens the survival of the two-state solution with Palestinians.
Video

Video NASA’s MAVEN Probe Enters Mars Orbit

NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video Prolonged Drought Plagues SW Oklahoma Farmers

Parts of western Texas and southwestern Oklahoma have been in drought conditions for several years running and the deficit in rainfall has taken a heavy toll on cotton and grain production. Oklahoma Governor Mary Fallin says the state has suffered $2 billion in agricultural losses since 2011. There has been rain in recent weeks, but, as VOA’s Greg Flakus reports from Altus, Oklahoma, for most farmers it has been too late.
Video

Video For West Ukraine City, Conflict Far Away Yet Near

The western Ukrainian city of Lviv prides itself on being both physically and culturally close to Western Europe. The Russian-backed separatists in the eastern part of the country are 1,200 kilometers away, and seemingly even farther away in their world view. Still, as VOA’s Al Pessin reports, the war is having an impact in Lviv.
Video

Video Saving Global Fish Stocks Starts in the Kitchen

With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video Chinese Admiral Key in China’s Promotion of Sea Links

China’s President last week wrapped up landmark visits to India, Sri Lanka and Maldives, part of a broader campaign to promote a new “Maritime Silk Road” in Asia. The Chinese government’s promotion efforts rely heavily on the country’s best-known sailor, a 15th century eunuch named Zheng He. VOA's Bill Ide reports from the sailor’s hometown in Yunnan on the effort to promote China’s future by recalling its past.
Video

Video Experts Fear Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

World Currencies

EUR
USD
0.7756
JPY
USD
108.49
GBP
USD
0.6096
CAD
USD
1.1002
INR
USD
60.951

Rates may not be current.