USABC hails TPP deal
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The US-Asean Business Council has expressed optimism in Asean's trade outlook following the conclusion of Trans-Pacific Partnership (TPP) negotiations last night.
Among the 12 nations included in the pact which cover 40 per cent of global trade, four are from the Asean bloc - Brunei, Malaysia, Singapore and Vietnam. The Philippines and Thailand have expressed interest in joining the pact.
“Asean countries represent over 30 per cent of countries negotiating the TPP. 40 per cent of the Asean nations will be signatories of the TPP and others, including the Philippines, have indicated an interest in joining in the future. The agreement will significantly and positively impact commercial relations between the United States and these important countries and is a critical component of American’s engagement with Southeast Asia in particular and with Asia more generally," said Alexander Feldman, president and CEO of the council.
Led by the United States, TPP negotiations started six years ago.
To Feldman, the trade pact will open opportunities for American companies in 11 important Pacific countries, "creating a level playing field for US businesses looking to break into and/or expand their presence in some of the fastest growing markets in the world. This agreement will improve intellectual property, environment, labour and e-ommerce standards across the region".
In a statement, International Monetary Fund Managing Director Christine Lagarde said the agreement marked a positive development.
“We would need to review all the details before offering a comprehensive assessment, including the transitional effects and spillovers, but I expect that the TPP can pave the way to a new generation of deep trade integration efforts. I encourage other countries to renew their efforts to complete ongoing negotiations and the broader international community to reignite multilateral trade initiatives to ensure a cohesive global trading system," she said.
TPP brings about new optimism just as a steep fall in commodity prices has resulted in a sharp drop in global trade value.
Facts on TPP
- 12: The number of countries now signed up to the TPP, adding the United States, Japan, Mexico, Canada, Australia, Vietnam, Malaysia, Peru.
- 5 am: Time that the deal was finalised on Monday, reportedly after 5 days and nights of straight negotiations.
- 800 million: The number of people living in countries signed up to the TPP.
- 40 per cent: The proportion of the world economy accounted for by the signatory countries.
- 18,000: The number of tariffs which are to be eliminated on US-made products under the terms of the TPP.
- 10 years: The amount of time that it will take for Mexico to eliminate its tariffs on Australian beef imports, under the TPP.
- 30 years: The amount of time that it will take for the US to reduce the tariffs it imposes on car imports.
- 1.55 trillion dollars: Total value of US trade with TPP countries in 2013.
- 0.59 trillion: Total value of US trade in 2014 with China, which is not part of the TPP
Source: DPA
