Trans-Pacific Partnership deal unlikely this year

A heavyweight lineup of former United States trade representatives have delivered a gloomy prognosis on the likelihood of the controversial Trans-Pacific Partnership (TPP) deal being wrapped up this year.

US President Barack Obama has signalled he wants a deal this year but a New Zealand-US gathering in Washington today heard that was unlikely.

"I'm optimistic it will be done ... I'm not optimistic it will be done this year," former USTR Carla Hills told about 275 delegates at the US-New Zealand partnership forum.

That view was shared by US trade representatives Charlene Barshefsky, William Brock, Mickey Cantor, Susan Schwab and Clayton Yeutter.

The TPP aims to stitch together a free-trade agreement between the US and a number of Asia Pacific countries including New Zealand, Australia, Malaysia and others.

But there is growing domestic opposition to the deal in a number of member countries because of potentially sweeping changes related to intellectual property protection, pharmaceutical subsidies, foreign investment rules and other changes.

Japan joined the negotiations this year and there have been mixed views about whether its presence will slow the negotiations.

But the panel of USTR's said that without Japan the TPP may never have been done.

Yeutter said he was not sure the deal would have got through the US Congress without Japan on board because the TPP was too small without them.

But he agreed that everyone was being too optimistic about the deal being done this year.

"I don't think it's a prayer it will get done this year," he said.

"I don't think they would have gotten it done this year even if Japan had not come in."

New Zealand is pinning its hopes on the TPP providing a back-door free-trade deal into the US after being rebuffed for years over separate negotiations.

It would liberalise New Zealand agricultural exports into the US.

But Hills was cautious about the extent of liberalisation.

"What I worry about is our own restrictions," she said.

"Will we insist on exempting sugar? Will we fuss over dairy? Will our agricultural supports be maintained?" 

May 21, 2013

Source: Stuff.co.nz