USTR Discusses TPP, May Add Supply Chain & Regulatory Issues to Talks
The Office of the U.S. Trade Representative has posted questions and answers from its first informal online chat session regarding the ongoing Trans-Pacific Partnership negotiations, in which it discusses additional information on U.S. intentions for the TTP.
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(The TPP is a multilateral free trade agreement that currently includes Brunei Darussalam, Chile, New Zealand, and Singapore. However, the U.S. and others -Australia, Peru, New Zealand, and Vietnam -- have announced their intent to join and expand the TPP.)
USTR Says TPP is Best Vehicle for Advancing U.S. Interests in Asia-Pacific
According to USTR, the U.S. decided to participate in the negotiations because the TPP is the best vehicle for advancing U.S. economic interests in the critical Asia-Pacific region. With its rapid growth and large markets, there is no region with which expanding U.S. trade is more vital than the Asia-Pacific.
Interested in Expanding TPP to Other Countries
While the current group of TPP participants provides additional meaningful market access, U.S. engagement is premised on the objective it shares with other TPP partners of expanding the initiative to include other countries throughout the Asia-Pacific region. USTR adds that several other countries have already expressed some interest in joining a TPP agreement. (According to press sources these countries include China, Canada, Korea, and Japan.)
U.S. Intends to Use Current FTAs as Model for TPP
With the TPP negotiations, the U.S. intends to build on the model it used in current FTAs, which, in addition to tariff reduction, cover the following elements: customs, services, financial services, telecommunications, e-commerce, investment, intellectual property rights, government procurement, competition, transparency, labor, environment, and other issues.
May Seek New Elements on Improving Supply Chains, Regulatory Regimes
The U.S. is also looking at including new elements in the TPP that would support the development of efficient production and supply chains that include U.S. firms in order to encourage companies to invest and produce in the U.S.
In addition, the U.S. is considering ways to make the regulatory systems of the TPP countries operate together more effectively to help address regulatory and other non-tariff measures that increasingly are the main problems that companies face in foreign markets. Developing common approaches on regulatory issues would help the countries address issues of mutual concern, such as food safety and help promote U.S. exports in emerging industries and technologies in which U.S. companies are globally competitive such as energy and environmental technology, biotech, nanotechnology, health and medical technology, IT, and education.
Draft Proposed Text Expected Sometime After June 2010 Round
The U.S. is still developing its negotiating objectives for each chapter and reviewing the input it has received from stakeholders. USTR does not expect to draft proposed text until after the upcoming round of negotiations which is set to begin June 14, 2010 in San Francisco.
(See ITT’s Online Archives or 05/21/10 news, 10052167, for BP summary of USTR discussing the June 2010 TPP negotiations, among other things.
See ITT’s Online Archives or 03/22/10 news, 10032210, for BP summary of the USTR report on the first round of TPP talks.)