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USTR Wants "Good Deal" for Domestic Textile & Apparel Firms in TPP

At a May 12, 2011 House Agriculture Committee hearing, U.S. Trade Representative Kirk stated that he has been listening to domestic textile and apparel industry concerns and is trying to address these concerns when negotiating the Trans-Pacific Partnership.

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(The U.S. and negotiating partners Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam are working to make TPP a 21st-century regional trade agreement. The U.S. hopes that the TPP will address the issues U.S. businesses and workers face, and gives them better access to the growing markets of the Asia-Pacific.)

Textile Provisions of Korea FTA Won’t Change, Can’t Rewrite Entire KORUS

A Representative questioned Kirk as to why certain parts of the Korea Free Trade Agreement were renegotiated (such as autos and beef), while the textile provisions were not. Kirk stated that he could not rewrite the entire Korea FTA, but he was disappointed that the Administration was not able to address domestic textile industry concerns.

Seeking to Have Textile Chapter in TPP Address Domestic Industry Concerns

When asked how the U.S. will handle textiles and apparel in the TPP negotiating talks, as Vietnam is a member and is only second to China in the exports of apparel to the U.S., USTR Kirk said that the U.S. is seeking to have a separate Textile Chapter as part of the text of the TPP. He noted that the U.S. has tabled a Textile Chapter during one of the rounds of the TPP negotiations.

(See ITT’s Online Archives or 02/07/11 news, 11020724, for BP summary of CRS saying that Vietnam’s participation in the TPP has proven controversial from the standpoint of certain domestic industry groups, such as textiles and apparel, as well as those concerned with labor, human rights and intellectual property issues.)

Hopes to Get “Much Better Deal” for Domestic Textile Industry with TPP

He said that the Administration has been careful in the TPP negotiations to engage the domestic textile industry early and often, and they have been a participant in nearly all of the TPP negotiating rounds. He hopes that through the TPP he can get a "much better deal" for this industry.

Wants IPR, Labor & Environment to be Part of TPP Text

When asked whether there were parts of previous FTAs U.S. negotiators would seek to exclude in the TPP, Kirk said that the Administration used this opportunity to learn about its past experiences in negotiating FTAs. Kirk noted that for example, the U.S. knows much more about what it takes to compete with State Owned Enterprises than it did during previous negotiations and the USTR is seeking to address some of those challenges.

He also said that the Administration is working to have certain issues, which have been handled in side agreements in other FTAs (including labor, the environment, and intellectual property rights), included in the text that it is proposing going forward.

(See ITT’s Online Archives or 05/05/11 news, 11050517, for BP summary of industry representatives saying that want an expanded TPP.

See ITT’s Online Archives or 04/04/11 news, 11040427, for BP summary of the U.S. tabling text on regulatory coherence, supply chains, and facilitating business at the 6th round of TPP negotiations.

See ITT’s Online Archives or 02/16/11 news, 11021623, for BP summary announcing that the 5th round of TPP negotiations began on February 14.

See ITT’s Online Archives or 12/12/10 and 10/18/10 news, 10121201 and 10101824, for BP summary of the 4th round of TPP talks on initial market access offers, and the 3rd round of TPP talks on agriculture, Customs, textiles and labor issues.)