There was some good news over the weekend, with the US House of Representatives effectively refusing to grant President Barack Obama so-called “fast track authority” to conclude the Trans-Pacific Partnership (TPP) trade agreement negotiations, which would have allowed the President to sign the deal and have it voted up or down in Congress without amendment.
In turn, the House’s rejection has effectively stalled negotiations between the 12 Pacific Rim member states, including Australia.
While the House did narrowly pass the “fast track authority” bill, it comprehensively rejected a program to give financial aid to workers that lose their jobs as a result of US trade deals with other countries, in a 302-126 vote against.
And without the worker assistance package, the “fast track authority” cannot become law, meaning that it will remain “stuck” in the House. Moreover, the whole package will now have to be voted on again.
The down vote comes despite desperate lobbying from President Obama, who for the first time travelled to the Capitol building in order to directly appeal for support of the legislation, and reportedly told members that a vote against the bill would be a vote against him. And yet, the bill was overwhelmingly rejected by his own Democratic Party, who voted 40 in favour to 144 against.
White House spokesman, Josh Earnest, maintained a brave face, labelling the down vote as another “procedural snafu” and said the administration was confident Democrats would come around to support the legislation.
Trade Minister, Andrew Robb, is also maintaining a brave face, on Sunday saying he remains optimistic countries can quickly conclude the TPP, whilst talking-up its benefits:
“There is another opportunity next week to get the ducks lined up”…
“There is always a lot of cut and thrust in these things and politics being played. The deal will bring enormous benefits, including more seamless trade across countries that represent almost half the world’s gross domestic product”…
“It will translate into jobs, growth and higher living standards”…
Mr Robb’s statement about benefits is curious given it was revealed last week that US President, Barack Obama, is refusing to slash agricultural tariffs and import quotas as part of the Trans-Pacific Partnership (TPP) trade agreement, thus excluding Australian sugar and beef farmers from realising benefits.
This rejection by the US has prompted Agriculture Minister, Barnaby Joyce, to declare that Australia will not sign a deal that excludes Australian farmers – a stance that Joyce reiterated over the weekend:
“I’ve been in discussions with the Americans and we will not be just signing any deal, it has to be a deal that works for us”…
Given that Robb has also said that he will not sign Australia up to a deal that leads to higher medicine prices, and that we know the US is seeking to extend patents (and copyright) terms along with other pharmaceutical protections, one has to ask the question: why is Robb still spruiking the TPP instead of backing away?
Surely, the answer has to be that Robb has placed his own ambitions ahead of the good of the nation.
Just like his predecessor in the Howard Government, former Trade Minister Mark Vaile, who signed the Australia-US FTA, the Coalition Government is set to make the same mistakes all over again: granting the US further intellectual property and copyright protections for its pharmaceutical, technology and television/film entertainment sectors, without reciprocal arrangements for Australian farmers.
The sad truth for Australians is that Robb has invested so much political capital in the TPP that he won’t walk away from negotiations.
For Robb, it’s now all the way with the USA. Bugger the consequences.
