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Trans Pacific Partnership trade negotiations in Brunei wrap-up
By Terri Hall
September 2, 2013
Examiner.com
With President Barack Obama’s popularity at home and overseas suffering, there’s yet another area of policy where his influence is diminishing: the Trans-Pacific Partnership (TPP) free trade agreement. World leaders from 12 different countries wrapped up a week of negotiations in Brunei Friday and will meet again later this month in the United States. The TPP represents the largest free trade agreement in U.S. history.
As Congress comes back from its August recess, it’ll be facing big questions about U.S. intervention in Syria as well as raising the debt ceiling, putting the administration’s goal of completing the TPP by year’s end in doubt. Negotiators have run into protectionist roadblocks at home, and with many of the main sticking points making no progress during the Brunei talks, some countries, such as Malaysia, admit things have reached a critical stage and they’re contemplating whether to withdraw from the pact completely.
Japan, who only joined talks mid-summer, is seeking exceptions to aspects of the TPP, which is causing other countries to balk at the effects the TPP could have on their own native, many of them state-owned, industries. Japan is seeking to shelter certain key agricultural crops from the removal of tariffs as required by the TPP. The five major products its seeking to protect are: rice, wheat, beef and pork (counted as one), dairy products and sugar.
However, the ‘official’ joint statement by TPP members claimed the negotiations were ‘successful’ and that progress was made: "...discussions both jointly and bilaterally were successful in identifying creative and pragmatic solutions to many issues and further narrowing the remaining work."
Progress was touted on market access, rules of origin, investment, financial services, intellectual property, competition and environment, as well as providing access to each other's markets for “goods, services, investment, financial services, temporary entry and government procurement."
But insiders say some work groups were not as successful as desired, including the environmental work group that made less than 40 percent of the progress expected. This was the last of the major negotiating sessions, and now the focus is said to be turning inward to ‘intercessional’ talks ahead of a planned TPP summit on October 8 in Bali, Indonesia.
Obama’s brain-child
Opposition isn’t just brewing overseas. Obama, though he’s cozy with big labor interests, started pushing the TPP on an unsuspecting U.S. public in 2008 with an ambitious Asia-Pacific free trade region that would cover 40 percent of global economic output representing about one-third of world trade. The countries at the table so far include: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. The TPP is expected to be a ‘docking agreement,’ leaving the door open for other nations to join with Thailand, the Philippines, South Korea and others already expressing some interest.
Keeping the public in the dark None of the negotiations nor documents have been made public. Yet 600 corporate lobbyists have been named official ‘advisors,’ giving them access to both documents and negotiators. Some of the companies involved are Walmart, Cargill, and Chevron.
According to Citizens Trade Campaign, these corporate interests are seeking new access to cheap labor (Vietnamese workers are paid one-third that of Chinese workers), the ability to skirt environmental laws, longer drug patents (delaying the production of low-cost generic drugs), financial de-regulation (preventing regulations that could stave off ‘too big to fail’ bailouts), caps on food safety protections (ie - limit liability for pesticides and genetically modified foods), concentration and hence control of global food supplies (making ‘buy local’ initiatives harder), and tax advantages.
First implemented under President Richard Nixon, fast track “trade promotion authority” is a trade negotiation and approval process designed to keep the terms of trade agreements out of the hands of the public and its elected representatives and into the hands of an un-elected trade representative and private corporations. This will allow the TPP to be signed before the public can see or scrutinize it. Fast track rules allow such trade agreements to be rushed through Congress and bypass normal Congressional review.
Threat to U.S. jobs Opponents claim the TPP is another NAFTA and will threaten more U.S. jobs at a time when unemployment and underemployment remain stubbornly high, especially among 18-35 year olds. The lack of high-paying, gainful employment relevant to one’s college education has sparked an effort by the administration to forgive student loan debt riddling the millennial generation, debt that’s causing many to be stuck living at home with their parents delaying home ownership and starting their own families.
The success of upcoming meetings in Washington and later in Bali will largely determine how quickly the TPP could come to fruition. But with some countries re-thinking the threat to their own economies and key markets, the TPP may be another Obama initiative that bites the dust in 2013.