CRS Reports on Potential Issues with U.S. Participation in TPP
The Congressional Research Service has issued a report entitled “The Trans-Pacific Partnership Agreement,” in which it discusses potential issues with U.S. participation in the TPP.
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U.S., 3 Other Countries Engaged in Discussions to Join TPP
The existing TPP, which originally came into effect in 2006, consists of Brunei, Chile, New Zealand, and Singapore. The U.S., Australia, Peru, and Vietnam have committed themselves to joining and expanding this group. The second round of discussions among the eight countries took place in June 2010 in San Francisco.
(See ITT’s Online Archives or 06/22/10 news, 10062220, for BP summary of the USTR’s announcement that the second round of TPP negotiations ended with negotiators making “significant, positive progress.”)
Increased Economic Activity Related to Political/Diplomatic Cooperation
According to CRS, there appears to be a correlation between increasing intra-regional economic activity and increasing intra-regional political and diplomatic cooperation. Many observers view the more recent intra-Asian Association of Southeast Asian States (ASEAN) plus three--China, Japan, South Korea -- and the ASEAN plus six (also known as the East Asia Summit (EAS)) -- China, Japan, South Korea, India, Australia, New Zealand -- groups as having attracted more interest within the region in recent years.
The U.S. is not a member of either the EAS or the ASEAN plus three group. President Obama has stated that the U.S. looks forward to engaging with the East Asia Summit more formally.
China, Japan More Attractive Trading Partners to Asian Nations than U.S.
CRS states that China's rapidly expanding economy and Japan's developed economy have made them attractive trading partners to many Asian nations. China's approach to the region has also shifted dramatically in recent decades as it now pursues its interests with the region in a relatively accommodative manner.
CRS adds that many regions also view the U.S. as having been distracted by events in Iraq and Afghanistan in recent years, which has led some to increasingly look to China and Japan as key partners.
Possible Inclusion of Vietnam Could be Controversial for U.S. Industries
CRS notes that U.S. participation in the TPP could potentially involve the negotiation of a free trade agreement with Vietnam. The possible inclusion of Vietnam may prove controversial from the standpoint of certain U.S. industry groups, such as textiles and apparel, as well as those concerned with labor, human rights and intellectual property issues.
CRS states that the involvement of Vietnam could add a higher level of difficulty, yet is illustrative of the challenges associated with developing a truly Asia-Pacific-wide trade grouping. All the potential parties may face complex negotiations in integrating the myriad FTAs that already exist between some TPP parties. (The U.S. currently has FTAs in force with Chile, Singapore, Australia, and Peru.)
(See ITT’s Online Archives or 08/06/10 news, 10080612, for BP summary of an August 2010 Senate hearing regarding agricultural export promotion, in which it was noted that the U.S. continues to participate in TPP negotiations.)
(Report dated 06/25/10)