WASHINGTON: Negotiators from 12 Pacific nations crafting a regional free-trade pact will meet in Hawaii later this month, with the US signalling that “considerable progress” has been made toward a final deal.
The Trans-Pacific Partnership would create a market with nations from the US and Mexico to Japan and Vietnam, representing about 40 per cent of the world’s economic output. It’s a cornerstone of President Barack Obama’s bid to refocus US foreign policy toward Asia.
“We have made considerable progress in closing gaps on remaining issues, and we continue to work intensively to address specific issues bilaterally,” the US Trade Representative’s office said in a statement. “The upcoming ministerial provides an important opportunity to build on this progress as we work to conclude the negotiation.”
The US Congress last month expanded negotiating authority for Mr Obama, setting up the potentially deal-clinching meeting July 24-31 at the Westin Resort & Spa on Maui. Chief TPP negotiators will meet July 24-27 followed by the trade ministers July 28-31.
Mr Gary Hufbauer, a senior fellow at the Institute for International Economics, said such a high-level negotiating session suggests officials from most or all the governments think an agreement is within reach now that Congress gave Mr Obama the negotiating powers he sought.
STUMBLING BLOCKS
Even so, trade negotiations often result in delays and the ministers may need to consult with their heads of state before closing the final deal later this year, Mr Hufbauer said.
“I think a deal is close but end July seems optimistic,” Mr Hufbauer said. “The end of August seems more likely.”
The agreement, now a draft that is confidential, has 29 sections ranging from trade in traditional goods to rules on the free flow of data – aimed at preventing trade barriers to Internet-based commerce – and rules on intellectual property.
Some of the thorniest issues involve traditional conflicts. The US is pushing Japan to open its long-protected agricultural market for beef, pork, dairy and rice products. Japan is seeking the end of US tariffs on cars and trucks for its auto industry.
