Tag Archives: trans-pacific partnership

Entering Trans-Pacific Partnership would boost exports by $15.7 billion: report

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2013-09-11   http://www.canplastics.com

Canadian exports could grow by as much as $15.7-billion if the federal government pulls the trigger on entering into the Trans-Pacific Partnership (TPP), according to the Fraser Institute.

According to a new study from the public policy think-tank, joining the TPP would provide a huge boost to the national economy and help move Canada away from its dependence on the United States as a trading partner.

“With the Conservative government signalling that international trade is a top priority, the TPP offers a chance for Canada to gain a foothold in the prosperous and growing Asian markets and move the country away from trade dependence on the United States,” international trade specialist and study co-author Laura Dawson said in a statement. “Participating in the TPP is also important to safeguard Canada’s current trade agreements, particularly (the North American Free Trade Agreement) NAFTA.”

While Dawson calculates that the TPP could provide a $9.9-billion increase in Canada’s gross domestic product (GDP), she said the agreement could be equally as important in shaping the rules of future trade agreements and ensuring gains already made, such as NAFTA, are protected so Canada does not have to undertake costly reforms to adapt to a new system.

“The era of easy trade policy gains may be over but the disciplines imposed by the TPP on investment, regulatory alignment, rules of origin and market access will, in the longer term, help increase certainty, reduce risk, and lower costs for Canadian exporters and investors in emerging markets,” Dawson said.

Entering the TPP trade agreement would secure a trade alliance between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore the U.S. and Vietnam, representing a combined economy of more than $27-trillion and about one third of global trade.

Additionally, the TPP has the potential to expand to include all Asia-Pacific Economic Cooperation (APEC) countries, providing for greater market-access gains in the future, the study.

“A significant attraction of the TPP is engaging China,” Dawson continued. “If China were to join, the TPP would become the first regional agreement to include the world’s three largest economies: the United States, China and Japan.”

The study also notes that when Canada negotiated the NAFTA and World Trade Organization (WTO) agreements in the early 1990s, issues such as electronic commerce, digital media and third-party logistics had not yet entered the commercial mainstream.

The TPP agreement provides a platform for discussing and resolving these and other emerging issues.

“If Ottawa is serious about diversifying Canada’s trade relationships, then TPP membership is a golden opportunity to do so,” Dawson said.

The full report can be accessed here.

Japan proposes tariff cuts for products sourced from TPP countries

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Kyodo     Aug 29, 2013    http://www.japantimes.co.jp

BANDAR SERI BEGAWAN – Japan has proposed tariff cuts for products made from materials produced in countries involved in the Trans-Pacific Partnership free trade talks, negotiation sources said Thursday.

For Japan, the proposal made during the ongoing round of TPP talks in Brunei means lower or no tariffs would be levied on Japanese firms’ products, subsequently boosting their competitiveness against those of countries not included in the TPP.

Twelve members of the TPP talks, including the United States, have been negotiating the rules for setting the scope of tariff reductions and eliminations in the working group for “rules of origin” in the TPP negotiations.

The 19th round is under way from Aug. 22 to Friday as countries aim to conclude a deal by the end of the year.

Japan is seeking a common rule among the TPP countries instead of having variations depending on each member country.

The negotiations on the rules of origin had been stalled, however, as Vietnam has been aiming to expand exports of its apparel and textiles by including those items made from yarn produced in China, a non-TPP member, in the target of tariff cuts and elimination, against the U.S. plan to limit the scope.

To facilitate the talks, the TPP countries have separated the negotiations on textiles from those on rules of origin.

The nine other countries involved in the TPP talks are Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru and Singapore.

Opinion: TPP to destroy local companies—The Brunei Times

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19th Round of TPP Negotiations Being Held in Brunei Threatens Local Companies, Onslaught Of Multinationals

Wednesday, August 28, 2013    http://www.bt.com.bn

Dear Editor,

I WRITE in response to the letter from MoFAT responding to TPP queries published in The Brunei Times dated August 27, 2013.

Firstly, I was pleasantly surprised to see MoFAT even responding. After so many TPP articles and letters written in The Brunei Times without response, I thought MoFAT simply did not care about the concerns of the people.

Secondly, I was however, really disappointed with the lack of clarity in the reply, which did not address many concerns that have been voiced by the public, and seems to add weight to the rumour that participating countries have to sign a confidentiality agreement, which means they cannot tell their people anything about the TPP negotiations.

Thirdly, reading MoFAT’s response, I couldn’t help but notice this paragraph: “With regard to concerns on foreign service providers entering the Brunei market, the reality remains that Brunei Darussalam currently lacks expertise in many critical areas, and this agreement will enhance the quality of services provided within the country.

At the same time, this will encourage local service providers to become more competitive and deliver higher quality services to consumers, as well as facilitate their entry into the markets of TPP countries.”

Personally, this paragraph seems to translate into something along the lines of: “Brunei businesses are simply not good enough in many areas, and introducing foreign competition will make them work harder, and hopefully they will be able to break into other markets in future.”

The general consensus is really positive I must say, and if Brunei businesses really survive the foreign onslaught, I am sure they will certainly be good enough to expand into other markets.

The thing is, what if they don’t survive? An editorial from The Brunei Times talked about the potential entrance of Walmart into Brunei. What if our supermarkets like Hua Ho and Supasave do not survive the Walmart onslaught and close down?

The fact is, as MoFAT has already admitted, our local businesses are not good enough, and if we simply allow foreign companies to come into Brunei without barriers, the local industries will suffer, and we will slowly move towards an economy reliant on foreign businesses.

Yes, I am advocating protectionism here, a term that has been given so much negative light all throughout the time free trade agreements have been promoted.

To expect local businesses to simply “live up to the challenge” is expecting too much.

As we all know our businesses cannot survive the onslaught of multinationals.

So my question to MoFAT is, don’t you think it will be exposing Bruneian businesses to unfair competition?

A businessman,
Gadong

TPP Trade Ministers Press Briefing/Statement (Update from 19th Round of TPP Negotiations in Brunei)

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By Krista Cox on 23. August 2013  http://keionline.org

On August 23, 2013, the TPP Ministerial meeting concluded with a press briefing. Stakeholders were not allowed to attend, but according to media sources, the briefing lasted only 20 minutes and reportedly the ministers only took a handful of questions before ending the briefing.

Apparently, Ambassador Froman confirmed that the October 2013 deadline was not possible, but that countries were now looking for “milestones” by October with the hope of concluding the agreement by the end of the year.

There have been no announcements regarding the location or date of the next TPP round, though there are rumours that it could be hosted by Mexico or Canada.

The joint press statement is copied below:

Joint Press Statement
TPP Ministerial Meeting
Bandar Seri Begawan, Brunei Darussalam
August 23, 2013

Brunei, Darussalam — The ministers of the Trans-Pacific Partnership (TPP) countries have met jointly and bilaterally on August 22 and 23, 2013 to consider how to address key outstanding issues as negotiations toward a comprehensive, high-standard regional trade and investment agreement enter the final stage.

Noting that the majority of issues are now at an advanced stage, the 12 countries — Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam — have explored how to develop a mutually-acceptable package, including possible landing zones on remaining sensitive and challenging issues and sequencing of issues in the final talks. Particular areas of focus have included matters related to market access for goods, services/investment, financial services, and government procurement as well as the texts covering intellectual property, competition, and environmental issues. We also discussed the remaining outstanding issues on labor, dispute settlement, and other areas.

This meeting of TPP Ministers has taken place as the 19th round of TPP negotiations gets underway in order to offer guidance to negotiators and help drive the negotiations to conclusion on the 2013 timeframe instructed by our Leaders. We discussed how best to achieve an outcome consistent with our common goal of achieving an ambitious and balanced 21st-century agreement that will enhance trade and investment among us, promote innovation, economic growth and development, and support the creation and retention of jobs in our countries.

We have agreed to maintain our active engagement in the lead up to the APEC Leaders meeting in Bali, Indonesia, on the margins of which TPP Leaders are expected to meet as they have in past years. This meeting will be an important milestone as the 12 countries work intensively to conclude this landmark agreement.