There was some potentially good news over the weekend, with reports emerging that US Vice president, Joe Biden, had announced that it has put negotiations for the Trans-Pacific Partnership (TPP) trade deal on ice, following Congress’ refusal to grant “Trade Promotion Authority” (TPA), which would have allowed President Obama to negotiate the TPP and then bring it back to Congress for an up or down vote, with no amendments allowed. From the Huffington Post:
The White House’s trade plans are on hold, at least for now, Vice President Joe Biden said Friday, in welcome news to many Democrats who oppose the sweeping deals…
After speaking to lawmakers at a Democratic policy retreat in Cambridge, Md., Biden acknowledged that Obama would not get his trade authority any time soon, in spite of having pushed for it in his recent State of the Union address…
Opposition to the trade deals — especially the Trans-Pacific Partnership, which is a major part of Obama’s pivot toward Asia — runs across the political spectrum. Opponents fear the TPP will undermine labor and environmental standards in the United States, and cost American workers’ jobs…
Democrats and many others are also angry that the talks crafting the deals have been shrouded in secrecy, with the details hidden from the public.
While Biden’s comments appeared clear-cut, the White House later rushed to emphasis that it remains committed to concluding the TPP deal, despite the stiff resistance from Congress:
…a senior administration official argued forcibly that the bid to secure TPA, which expired in 2007, and the TPP remained on track.
“I would not suggest in any way we are not committed to concluding a TPP this year,” the official said on condition of anonymity.
“We are going to keep at this. TPA is part of that broader context.
“People are referring to second hand accounts of something that the vice president may have said in a closed door session,” the official said…
While I am sure the White House is committed to concluding the TPP, the fact that Congress has refused to grant TPA means that it will be next to impossible to reach an agreement in the short-term. Protectionist interests within the US – in particular the textile, apparel, dairy and sugar industries – are bitterly opposed, as are many within Congress, including the highly influential Senate Democratic majority leader, Harry Reid.
All this is good news for Australia, in light of the risks posed to Australia’s sovereignty and consumer welfare arising from the TPP. As long as US in-fighting continues, deadlines will continue to get pushed into the future, and enthusiasm for the TPP amongst the 12 Pacific Rim countries will likely wane, lessening the chance that a deal will eventually be struck.
