The secret world of Trans-Pacific Partnership (TPP)
(from Newzzit; the original story is here http://newzzit.com/stories/the-secret-world-of-trans-pacific-partnership-tpp)
Quick Summary
No texts or negotiating positions have been officially released by the TPP countries in public domain even after 19 rounds of negotiationss
Only information available is through leaked texts.
When in force, TPP will represent 40% of the global economy.
Negotiatorsfrom the 12TPP countries - Australia, Brunei, Canada, Chile, Japan, Malaysia,Mexico, New Zealand, Peru, Singapore, the United States and Vietnam,concluded their week-long negotiations in Brunei on August 30,without announcing any breakthroughs. The agreement pushed forward bythe Obama administration since 2010 has been shrouded in secrecy allthrough its 19 rounds of negotiations till now. It has often ran intoprotests in many countries amid fears that it will leave domesticmarkets exposed to foreign competition without adequate protection.
TPP is a proposed regional “comprehensive and high-standard” free trade agreement (FTA) currently under negotiation between 12 countries in three continents. It has been called a "high quality, 21st century" agreement that covers a range of topics for which separate working groups have been established. These are - market access for goods and services, agriculture, technical barriers to trade, sanitary and phyto-sanitary measures, transparency in healthcare technology and pharmaceutical, rules of origin, customs cooperation, investment, services, non-conforming measures, financial services, telecommunications, e-commerce, business mobility, labour, environment, capacity building, trade remedies, and dispute settlement. A departure from other FTAs, TPP's additional focus is on cross-cutting "horizontal issues" such as regulatory coherence, competitiveness and business facilitation, development and Small and Medium Enterprises (SMEs). When concluded, TPP will represent nearly 40% of the global economy and one-third of world trade.
Eventhough, no official positions have been released by the TPP countriesin public domain even after 19 rounds of negotiations, whateverinformation is available through leaked texts has led to severalanalysts expressing concerns on the slow progress made innegotiations concerning key areas such asIntellectual Property regime, electronic goods, and textile marketaccess. This they say is due to the American preoccupation ofensuring export opportunities for the US while protecting itsdomesticindustries at the same time.
Otherslike Sanchita Basu Das, who is the lead researcher (economic affairs)at theASEANStudies Centre, in Singapore's Institute of South-east Asian Studies(ISEAS)contended, “TPP may divide ASEAN since not all members areparticipating in TPP. This may undermine ASEAN’s centrality.”
Accordingto Das, there are two other concerns as well. Firstly TPP doesn'tinclude China and India, two of the biggest economies of the region.Secondly, “TPP is being promoted as a 'Gold-standard FTA' and isexpected to develop alevelplaying field for businesses in the Asia-Pacific by focussing onliberalising ‘behindtheborder’ measures for cross-border trade and investment, andstrengthening regulatoryreforms.However, the TPP countries are at different levels of economicdevelopment. An unprecedented range of WTO Plus issues covered underTPP will require significant reforms in the domestic industrial andeconomic policies of most members. Thesewillmake negotiations tough, especially for developing countries in needof fundamentaleconomicreforms and for economies that comprise largely of state-ownedenterprises.” His article, RCEP and TPP: Comparisons and Concerns,appeared in ISEAS' publication, Perspective, in January this year.
Concerns for Singapore
A strict Intellectual Property regime, which is reportedly stricter than the WTO TRIPS already in place, can affect the affordability of healthcare and internet services in Singapore.
A strong competition policy which requires competitive neutrality of State-owned enterprises, may affect the already suffering small and medium scale enterprises in Singapore.
In circumstances involving investor-state arbitration, foreign companies will be allowed to challenge Singapore government rulings in international tribunals.
Under TPP, the provisions for labour standards being discussed is to enforce the ILO core standards in all countries. That may prove decremental to labour intensive industries in Singapore in the short run.
Also, liberalising the agricultural sector [in reference to export subsidies] will be highly sensitive for a net agricultural importer like Singapore.
Note: These concerns are based on ISEAS' prescriptive, The TPP: Economic and strategic implications for the Asia-pacific, published on July 23, 2012.
Newzzithad forwarded all the above concerns to the ministry of trade andindustry (MTI)for their responses, which we didn't receive till press time. We willbe carrying MTI's reply as and when we receive it. Earlier, after the16thround of negotiations held in Singapore in March, the ministry hadsaid this in a release, “TPP countries recognise that there remaina range of more challenging areas,suchas intellectual property, environment, competition and labour, whichwillrequirefurther deliberation amongst TPP countries. In goods, services,investmentandgovernment procurement, negotiators continued efforts to develop anambitiousandcomprehensive market access package that would create newopportunities andmaximisethe TPP’s potential as a regional trade agreement to benefit allTPPcountries.”