Big trade left at wayside
The US Government has effectively buried the Trans-Pacific Partnership Agreement.
The Obama administration had planned to rush through the bill before the inauguration of Donald Trump, but it now appears it will be up to the new president.
The massive trade deal, 8 years in the making, covering 12 nations and 40 per cent of the world’s economy, was reportedly a main topic of Prime Minister Malcolm Turnbull’s phone call to president-elect Donald Trump last week.
While the deal remains largely unknown to the public, there are serious concerns about extended and expanded intellectual property laws for digital and pharmaceutical products, as well as Investor-State Dispute Resolution provisions that allow companies to take legal action against governments for policies that inhibit their business activities.
The member countries - Australia, the US, Japan, Canada, New Zealand, Malaysia, Brunei, Singapore, Chile, Mexico, Peru and Vietnam – have all signed the deal, but none have ratified it.
The terms of the deal require it to be ratified by parties representing 85 per cent of their combined total GDP, but without the support of the US, the remaining nations comprise just 43 per cent of the total.
Over the weekend, Trade Minister Steve Ciobo spoke at length about what he sees as the benefits of the deal, and the significant struggles blocking its success.
He was asked whether the remaining 11 nations in the deal could go ahead without the US.
“In theory, yes,” Mr Ciobo told the ABC.
“But really with the United States not being part of it, first of all, one officially the TPP would not get up but, secondly, if we looked at; ‘Is there enough merit to look at a trade deal among the 11 of us?’ It changes the metrics substantially.”
“If it comes to pass that the TPP doesn't secure United States domestic ratification, it is certainly not the end of trade globally as we know it. It will continue.
“What we know is that liberalised trade drives economic growth. The reason that's important is because it translates to jobs here in Australia. That's the reason why we pursue these outcomes.
“If you look at Australia today, those areas that are feeling some economic downward pressures, in other words not growing as fast as they'd like, that's largely because we have seen a drop-off in the commodity price cycle, we are not exporting enough into other markets.”
Mr Ciobo says he will talk about the future of the agreement at the APEC leaders summit in Peru this week.