Trans-Pacific Talks Push Forward in San Diego

The thirteenth round of negotiations for the proposed Trans-Pacific Partnership (TPP) Agreement came to a close on 10 July, with reports of “progress” in various negotiating areas; however, trade observers note that time is running short for members to meet their current year-end goal for concluding the talks. Meanwhile, Canada and Mexico continue to await their formal entry into the discussions, as the current nine members undertake the required domestic legal steps for bringing in new parties.

The 2-10 July talks, held in the US state of California, saw “substantial progress across the chapters,” according to the Office of the US Trade Representative (USTR). Specifically, negotiators were able to advance significantly in areas such as customs, cross-border services, telecommunications, government procurement, competition policy, and co-operation and capacity-building.

Other areas that reportedly saw movement during the San Diego gathering included discussions on rules of origin, investment, financial services, and temporary entry. Market liberalisation in the area of services, as well as for industrial goods, agriculture, and textiles, were also under discussion during the nine-day meeting.

However, unlike the previous round of negotiations - held in the US state of Texas in May - no negotiating areas were formally announced as complete. During the Dallas talks, the negotiating group for small and medium-sized enterprises finished its discussions, leaving what officials called “the really tough issues.”

TPP members have said that they hope to have a deal ready by the end of 2012, though analysts have noted that this goal might be hard to achieve given the range of difficult issues involved in the talks, such as intellectual property rights and state-owned enterprises.

However, recent comments from US government officials have indicated that the goal still stands, with US Secretary of State Hillary Clinton telling reporters in Hanoi, Vietnam on Tuesday that TPP members “hope to finalise this agreement by the end of this year.”

The proposed trade pact - billed as a “21st century deal” by its proponents - aims to slash tariffs and other barriers to goods and services trade and investment; the goods covered will represent some 11,000 tariff lines. Negotiators also plan to incorporate into the pact issues involving regulatory coherence; competitiveness and business facilitation; small- and medium-sized enterprises; and economic development and governance, according to an outline released last November.