The Five Topics That Could Derail TPP

Negotiators present at the TPP talks in Malaysia have outlined the five topics that could negatively impact the global trade agreement:

  • Market access or tariff elimination
  • Intellectual property rights
  • Environmental problems
  • Labor
  • Electronic commerce

Trans-Pacific Partnership free trade negotiations remain stalled over five topics including the key issue of market access or tariff elimination, negotiation sources said Tuesday.

One market access proposal under discussion calls for all parties to agree on the removal of tariffs on all products before moratoriums are set up on the removal of tariffs for certain products of special concern to TPP participants, they said.

One of the sources said it was likely that some of the decisions would be subjected to political decisions in the final phase.

The other four problematic issues are intellectual property rights, environmental problems, labor and electronic commerce, the sources said.

The 11 TPP negotiation participants including the United States, Australia and Malaysia plan to broadly agree on the TPP free trade agreement by October and sign the pact by the end of this year.

But the stalemate over the five topics and Japan’s imminent participation in the talks are expected to make it difficult for the negotiating parties to meet the schedule, the sources said.

Negotiations have ended on five of the 29 planned chapters — trade facilitation, standard unification, telecommunications, development, small and medium-sized enterprises — and have effectively been completed on nine others, one of the sources said.

Japan is set to join the negotiations on July 23 amidst the current round of talks that started Monday in Kota Kinabalu, eastern Malaysia, and that will last until July 25.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza