National Journal's Trans-Pacific Partnership Primer
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Transcript of National Journal's Trans-Pacific Partnership Primer
Trans-Pacific Partnership Primer Published May 20, 2013
National Journal Presentation Credits Producer: Jenna Fugate Director: Jessica Guzik
The Trans-Pacific Partnership is a Free Trade Agreement Subject to Ongoing Negotiations
Source: International Trade Administration.
Free Trade Agreements Free trade agreements (FTAs) are arrangements between nations that reduce trade barriers like tariffs and import quotas
Trans-Pacific Partnership
The Trans-Pacific Partnership (TPP) is a proposed regional free trade agreement that aims to liberalize trade of most goods and services and go beyond trade commitments currently established by the World Trade Organization (WTO); the TPP could potentially eliminate tariff and non-tariff barriers to trade and investment among the countries involved and could serve as a template for a future trade pact
Countries Currently Participating in TPP
Source: International Trade Administration.
Negotiating country
Has expressed interest in negotiating
Non-negotiating country
Analysis • The TPP is currently being negotiated among the United States, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru,
Singapore, Vietnam and Japan • Potential future members include Taiwan, the Philippines, Laos, Colombia, Thailand, and Costa Rica • There have been 16 rounds of negotiations and each year more countries join the negotiations
New Negotiations Take Place as More Countries Join TPP
Source: International Trade Administration; Office of the U.S. Trade Representative, Ian F. Fergusson, William H. Cooper, Remy Jurenas, and Brock R. Williams, “The Trans-Pacific Partnership Negotiations and Issues for Congress,” Congressional Research Service, April 15, 2013.
2005 2008 2010 2011 2012 2013
Trans-Pacific Strategic Economic Partnership (P4) initiated as a free
trade agreement among Brunei, Chile, New
Zealand, and Singapore, aiming to make
economies of the Asia-Pacific region more
liberal
January U.S. agrees to enter talks with P4 about liberalizing trade in financial services
September U.S. announces it will begin
negotiations with P4 countries to join the TPP
November Australia, Peru, Vietnam
announce they are joining TPP negotiations
October Malaysia announces it
will join TPP negotiations
November South Korea expresses interest in joining TPP
negotiations
June Canada and Mexico announce they will
join TPP negotiations
March Japan announces it
will join TPP negotiations
March Round 1,
Melbourne, Australia
June Round 2, San
Francisco, USA
October Round 3, Brunei
December Round 4, Auckland,
New Zealand
February Round 5, Santiago,
Chile
March Round 6, Singapore
September Round 8, Chicago,
USA
June Round 7, Ho
Chi Minh City, Vietnam
October Round 9, Lima, Peru
December Round 10,
Kuala Lumpur, Malaysia
March Round11,
Melbourne, Australia
May Round 12,
Dallas, USA
July Round 13, San Diego,
USA
September Round 14, Leesburg,
Virginia, USA
December Round 15,
Auckland, New Zealand
March Round 16, Singapore
May Round
17, Lima, Peru
New Countries Entering Negotiations Rounds of Negotiations
U.S. Seeks Increased IP Protection, Better Market Access in TPP Negotiations
Analysis • Among confirmed TPP members, U.S. is negotiating for market access to goods, services, and agriculture with countries with
which it does not currently have FTAs: Japan, Malaysia, Vietnam, New Zealand, and Brunei • The U.S. is seeking increased intellectual property rights protection, such as requiring criminal penalties for importing counterfeit
labeling and packaging, whether done willfully or not, and requiring criminal penalties for cam-cording in movie theatres
Japan
Malaysia
Brunei
U.S. Imports (In Billions) U.S. Exports (In Billions)
$3.4 $3.2
$25.9 $12.9
$146.4 $70.0
0.1 0.2
Trade Concerns
The U.S. dairy sector wants protection from New Zealand’s dairy exporters
Vietnam
New Zealand
Brunei
$4.6 $20.3
$0.1 $0.2
Certain U.S. footwear manufacturers have argued for maintaining high tariffs on imported footwear, while Vietnam is pressing for lower tariffs to gain greater access to the U.S. market
Trans-Pacific Partnership Countries With Whom U.S Does Not Have Existing FTAs
Source: International Trade Administration; Office of the U.S. Trade Representative, Ian F. Fergusson, William H. Cooper, Remy Jurenas, and Brock R. Williams, “The Trans-Pacific Partnership Negotiations and Issues for Congress,” Congressional Research Service, April 15, 2013.
TPP Member
Opponents Concerned That TPP Involvement Compromises U.S. Trade
• Member countries at varied levels of economic development may not be able to meet U.S. trade standards, forcing the U.S. to make concessions
• Increased intellectual property rights protection
may weaken ability of the U.S. to obtain generic medicines, compromising Americans’ access to affordable medicine
• Focus on the TPP and other regional/bilateral free
trade agreements may divert necessary attention and resources from multilateral WTO initiatives
• Free trade agreements may complicate commerce,
with different rules and standards for different FTAs that companies must take into account when conducting international trade
• The TPP could impact current U.S. trade policies;
for example, there is a question of whether the TPP could preclude the U.S. from negotiating bilateral FTAs, such as an FTA with the EU
Sen. Bernie Sanders (I-Vt.)
Rep. Henry Waxman (D-Calif.)
Rep. Sander Levin
(D-Mich.)
Rep. John Conyers (D-Mich.)
Rep. Jim McDermott (D-Wash.)
Rep. John Lewis (D-Ga.)
Rep. John Conyers (D-N.Y.)
Rep. Earl Blumenauer
(D-Ore.)
Rep. Lloyd Doggett (D-Tex.)
Have expressed concerns about the effect TPP requirements would have on U.S. access to
generic medicine:
Source: International Trade Administration; Office of the U.S. Trade Representative, Ian F. Fergusson, William H. Cooper, Remy Jurenas, and Brock R. Williams, “The Trans-Pacific Partnership Negotiations and Issues for Congress,” Congressional Research Service, April 15, 2013.
Concerns with U.S. TPP Involvement
=
Supporters Believe Successful Negotiations Could Set Positive Precedent
• The TPP provides the U.S. an opportunity to negotiate a comprehensive and high-standard FTA and protect its trade interests
• Successful negotiation and implementation of new
trade rules proposed in the TPP could set precedent for future WTO negotiations
• Trade might be further liberalized if other
countries in the region consider joining the TPP based on the success of the negotiations (as was the case with Canada and Mexico recently)
• The TPP could bolster economic policy reforms,
particularly for countries such as Vietnam (the WTO is critical of Vietnamese labor rights and intellectual property rights standards), by enforcing higher policy standards and liberalizing trade
President Barack Obama
Obama supports TPP negotiations as the leading trade policy initiative of the Obama
administration, and part of the administration’s “pivot” to Asia
Source: International Trade Administration; Office of the U.S. Trade Representative, Ian F. Fergusson, William H. Cooper, Remy Jurenas, and Brock R. Williams, “The Trans-Pacific Partnership Negotiations and Issues for Congress,” Congressional Research Service, April 15, 2013.
Potential Benefits of U.S. TPP Involvement
=
TPP Could Have Large-Scale Impact on U.S. Trade
Source: International Trade Administration; Office of the U.S. Trade Representative, Ian F. Fergusson, William H. Cooper, Remy Jurenas, and Brock R. Williams, “The Trans-Pacific Partnership Negotiations and Issues for Congress,” Congressional Research Service, April 15, 2013.
Analysis • The TPP could have a significant impact on U.S. trade because potential TPP members account for 62% of U.S. trade; confirmed
TPP members account for 34% of U.S. trade • Certain industries that export to TPP countries will be impacted; the major U.S. merchandise exports to TPP countries are
machinery (e.g., computers, turbines, and agricultural equipment), electrical machinery (e.g., integrated circuits, semiconductors, and cell phones), autos, and refined petroleum products
U.S. World and TPP Goods Trade (In billions of U.S. dollars)
0
1
2
3
4
5
6
7
8
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Other Countries
Other APEC*
China Japan
Canada & Mexico Australia, Chile, Peru & Singapore
Brunei, Malaysia, New Zealand, & Vietnam
Total U.S. Trade (100%)
Potential TPP (62%)
Current TPP (34%)
$
$
$
$
$
$
$
$
$
B
B
B
B
B
B
B
B
B
* China, Hong Kong, Indonesia, South Korea, Papua New Guinea, Peru, The Philippines, Russia, Taipei, and Thailand