Nationals plan revolt over TPP

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By Leith van Onselen

The National Party has stepped up its threats over the Trans-Pacific Partnership (TPP) trade deal, claiming that five of its members will cross the floor and vote against the deal if substantial sugar access is not granted to Australian sugar can growers. From The Australian:

Queensland “sugar-belt” MPs George Christensen, Matthew Canavan, Michelle Landry, Keith Pitt and Ken O’Dowd have ruled out support for a “token” TPP deal that will deliver only minor benefits to the $2 billion sugar industry. At least two are already prepared to cross the floor.

In a joint statement to be ­released today, the MPs make clear that improved access to the US market is not sufficient to win their support and they urge negotiators to dig their heels in to ­secure a major breakthrough…

“If the Australian sugar industry does not receive a substantial improvement in market access under the TPP, we cannot support a deal,” the MPs warn. “We could not in good conscience give support to enabling legislation for the TPP if it ignores one of the most important industries in our state.

“The Australian cane-growing industry supports more than 4000 families, mostly across Queensland, with countless communities reliant on the economic strength of the sector for business growth, jobs and prosperity. It is our job to fight for these farming families and communities.”

Queensland Liberal National Party senator Barry O’Sullivan, who is overseas, is understood to share the views of his colleagues.

Meanwhile, Liberal Party senator, Bill Heffernan, has once again raised concern that the TPP could allow Bovine spongiform encephalopathy (BSE) landing in Australia via US beef imports. From The Land:

[Heffernan] believes the US cattle herd’s traceability system is flawed and based on a “telegram era” method, compared to Australia’s birth-to-death National Livestock Identification System (NLIS).

Senator Heffernan also has concerns about the US sharing its borders with Mexico and Canada where the disease has been previously detected, causing market disruptions…

“We have full birth to death traceability in Australia and I’ve told US and Canadian officials that when they’ve got full traceability and they close their borders they can then come and speak to me,” he said.

“Their traceability system uses telegram era technology and to say that’s adequate is just not good enough…

“In the past we’ve had a trade advantage when other countries have had BSE outbreaks because of our clean green reputation so I don’t think we should give up our advantage.

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Heffernan also slammed the lack of transparency surrounding the TPP negotiations:

“I just think there’s something wrong when to find out where they’ve been on the TPP – not where they’re up to – you have to go down to the Department of Foreign Affairs Trade and sign a four-year confidentiality clause”…

“And then they won’t even tell you where negotiations are up to but we’re the people elected on behalf of the people of Australia to make decisions.

“I’ve got no idea why there are secrecy provisions, when all sorts of sovereignty issues are involved in this, including the capacity to sue governments.

“Commercial people can sue the government for God’s sake – but the text says nothing; it’s just motherhood statement stuff.

“We need to know what’s being put on the table and what’s at risk….

“I just don’t think it’s satisfactory for government to say to an elected representative or an elected committee of the Senate ‘we can only show you the details if you sign a four year secrecy clause and only then we’ll show you what’s gone on in the past’”…

“I’ve talked to many senior leaders past and present that’ll tell you off the record that it’s very odd.”

Finally, Parliamentary Secretary for Trade, Steve Ciobo, last night conceded on ABC Lateline that stricter intellectual property protections could arise from the TPP:

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TOM IGGULDEN: Parliamentary Secretary for Trade Steve Ciobo doesn’t deny there could be things in the Trans-Pacific Partnership, if it’s signed this week, that might not be popular, for example, patent extensions for US drug companies that could drive up the price of some medicines.

STEVE CIOBO: Well the Government of course continues to push and negotiate for the very best deal that we can get that is going to make Australia’s national interest very well served. Obviously, the other parties sitting around the negotiating table want to serve their own domestic considerations as strongly as possible.

Both DFAT and Trade Minister Andrew Robb have given multiple assurances that Australia’s intellectual property rules will not be tightened as a result of the TPP. I expect them to hold-up their end of the bargain.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.