Trade breakthrough Trans-Pacific Partnership details revealed

See also: Titanic TPP clash between Hooton and Kelsey – on NBR Radio from noon

The full text of the Trans-Pacific Partnership (TPP) trade pact was released November 5, setting the stage for ratification processes expected to be contentious in many of the 12 signatory states.

The deal lowers trade barriers and sets common standards on a wide range of issues, including workers’ rights and intellectual property protections. It is expected to be particularly beneficial to export-oriented economies such as Vietnam and Malaysia.

But the TPP has been opposed by various trade groups, particularly in the dairy, pharmaceutical and automotive industries, as well as labour unions.

New Zealand is the main depository for the agreement, meaning it is responsible for circulating the text and related documents and notifications. The Ministry of Foreign Affairs and Trade has loaded the constituent parts of the agreement to a dedicated page.

Originally called the “P4” – when Singapore, New Zealand, Brunei Darussalaam and Chile formulated the trade deal – the TPP evolved into a 12-member Pacific-wide agreement to include Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam.

The negotiations were concluded on October 5.

The result is a high-standard, ambitious, comprehensive, and balanced agreement that aims to promote economic growth; support the creation and retention of jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty in our countries; and promote transparency, good governance, and enhanced labour and environmental protections.

Trade Minister Tim Groser today welcomed the release of the text saying he supports the release of the text as soon as the technical work to finalise the agreement was completed.

“I am pleased that this has happened and that the public will be able to thoroughly review the full text of the TPP well before it will be signed by governments,” he says in a statement.

“This is a complex agreement, with 30 chapters and associated annexes. The large number of documents released today amount to over 6000 pages of text and market access schedules.

Understanding the legal obligations of the TPP will require careful analysis of all documents, given the inter-relationship between many provisions in the agreement.

Mr Groser says legal verification of the text will continue in the coming weeks. The government’s consideration of the final outcome of negotiations, will need to be completed before signature takes place.

“Following signature, TPP, like any free-trade agreement, will need to go through New Zealand’s parliamentary processes,” said Mr Groser.

Clarifying the details
The release of the details exactly a month after the negotiations were concluded will clarify the winners and losers of the deal and illuminate the dynamics of the ratification fights ahead.

Although the 12 TPP states each have different obstacles to overcome in their parliaments, the central fight for the success of the agreement will be in the US political system.

US President Barack Obama is legally required to let the public read the deal for a minimum of 60 days before signing it. He also must alert the US Congress 90 days before he intends to sign it.

“I know that if you take a look at what’s actually in the TPP, you will see that this is, in fact, a new type of trade deal that puts American workers first," says Mr Obama.

With the TPP comes the recognition that the definitions and applications of global power have changed. The agreement was once seen as the core of the US “pivot” to Asia. It was a clear reaction to the rising Chinese economic influence in the Asia Pacific and a drive by Washington to gain increased access in Southeast Asia, one of the only growing markets in the world.

“We envision conclusion of this agreement, with its new and high standards for trade and investment in the Asia Pacific, as an important step toward our ultimate goal of open trade and regional integration across the region,” says the office of the US Trade Representative (USTR).

However, the political aspects of the TPP have been played down in recent months, even by China. There is even talk of other countries entering a potential second round of entrants into the TPP including China, South Korea and Indonesia. This may change as the TPP moves from the theoretical to the concrete and the various countries’ domestic constituents and experts debate the deal.

The deal will take effect within 60 days of all countries finishing necessary implementation work, or once six countries accounting for 85% of the bloc's economic output have ratified the agreement, if not all are ready after two years.

Recent US trade agreements have taken from 12 days, in the case of Oman, to 113 days, for Chile, between the conclusion of negotiations and release of the text. That makes an average of 43 days.

The Text of the Agreement can be found here.

The Annexes of the Agreement can be found here.

nsmith@nbr.co.nz