USTR Overview of TPP Legal Text for Customs, Origin, Textiles, Etc.

(See ITT’s Online Archives 11111413 for summary of the announcement during the APEC leaders meeting that the broad outlines of the TPP had been agreed upon.)

Market Access -- Addresses Tariff/Non-Tariff Barriers, Considering Licensing, Etc.

The text on trade in goods addresses tariff elimination among the partners, including significant commitments beyond the partners’ current WTO obligations, as well as elimination of non-tariff measures that can serve as trade barriers. The TPP partners are considering proposals related to import and export licensing and remanufactured goods. Additional provisions related to agricultural export competition and food security also are under discussion.

Tariff Schedule - Covers 11,000 Tariff Lines, Developing Common Rules of Origin

The TPP tariff schedule will cover all goods, representing some 11,000 tariff lines. The nine countries also are developing common TPP rules of origin, and are weighing proposals now for how to do this most effectively and simply.

Customs Text - Emphasizes Timely Release, Customs Agency Cooperation

TPP negotiators have reached agreement on key elements of the customs text as well as on the fundamental importance of establishing customs procedures that are predictable, transparent and that expedite and facilitate trade, which will help link TPP firms into regional production and supply chains. The text will ensure that goods are released from customs control as quickly as possible, while preserving the ability of customs authorities to strictly enforce customs laws and regulations. TPP countries also have agreed on the importance of close cooperation between authorities to ensure the effective implementation and operation of the agreement as well as other customs matters.

Textiles/Apparel - Discussing Market Access, Rules of Origin, Special Safeguard

In addition to market access on textiles and apparel, the TPP countries also are discussing a series of related disciplines, such as customs cooperation and enforcement procedures, rules of origin and a special safeguard.

(See ITT’s Online Archives 11103111 for summary of letter from group of Representatives urging U.S. negotiators to leverage textiles for other TPP gains.)

Rules of Origin -- Seeking Common Rules, Discussing Cumulation & Verification

TPP countries have agreed to seek a common set of rules of origin to determine whether a product originates in the TPP region. They also have agreed that TPP rules of origin will be objective, transparent and predictable and are discussing approaches regarding the ability to cumulate or use materials from within the free trade area in order to make a claim that a product is originating. In addition, the TPP countries are discussing the proposals for a system for verification of preference claims that is simple, efficient and effective.

IPR -- Building on WTO Rules & Considering New Issues Like Genetic Resources

The TPP countries have agreed to reinforce and develop existing World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) rights and obligations. Proposals are under discussion on many forms of intellectual property, including trademarks, geographical indications, copyright and related rights, patents, trade secrets, data required for the approval of certain regulated products, as well as intellectual property enforcement and genetic resources and traditional knowledge. TPP countries have agreed to reflect in the text a shared commitment to the Doha Declaration on TRIPS and Public Health.

Sanitary and Phytosanitary Standards - Has New Measures on Equivalence, Considering Import Checks

To enhance animal and plant health and food safety and facilitate trade among the TPP countries, the nine countries have agreed to reinforce and build upon existing rights and obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. The SPS text will contain a series of new commitments on science, transparency, regionalization, cooperation, and equivalence. In addition, negotiators have agreed to consider a series of new bilateral and multilateral cooperative proposals, including import checks and verification. 

Technical Barriers to Trade - Includes Conformity Assessment, International Standards, Etc.

The TBT text will reinforce and build upon existing rights and obligations under the WTO Agreement on Technical Barriers to facilitate trade among the TPP countries and help regulators protect health, safety, and the environment and achieve other legitimate policy objectives. The text will include commitments on compliance periods, conformity assessment procedures, international standards, institutional mechanisms, and transparency. The TPP countries also are discussing disciplines on conformity assessment procedures, regulatory cooperation, trade facilitation, transparency, and other issues, as well as proposals that have been tabled covering specific sectors.

Temporary Entry - Substantially Concluded, Discussing Specific Obligations

TPP countries have substantially concluded the general provisions of the chapter, which are designed to promote transparency and efficiency in the processing of applications for temporary entry, and ongoing technical cooperation between TPP authorities. Specific obligations related to individual categories of business person are under discussion.

Trade Remedies - Considering Transparency and Due Process

TPP countries have agreed to affirm their WTO rights and obligations and are considering new proposals, including obligations that would build upon these existing rights and obligations in the areas of transparency and procedural due process. Proposals also have been put forward relating to a transitional regional safeguard mechanism.

Government Procurement - Seeking Comparable Coverage by All Countries

The TPP negotiators have agreed on the basic principles and procedures for conducting procurement under the chapter, and are developing the specific obligations. The TPP partners are seeking comparable coverage of procurement by all the countries, while recognizing the need to facilitate the opening of the procurement markets of developing countries through the use of transitional measures.

Services & Investment - Negotiating Negative Lists to Allow Fewer Exceptions

The services and investment packages will cover all service sectors. To ensure a high-standard outcome, the TPP countries are negotiating on a “negative list” basis, which presumes comprehensive coverage but allows countries to negotiate specific exceptions to commitments in specific service sectors.

Cross-Border Services - Agreement Reached on Core Elements

TPP countries have agreed on most of the core elements of the cross-border services text. This consensus provides the basis for securing fair, open, and transparent markets for services trade, including services supplied electronically and by small- and medium-sized enterprises, while preserving the right of governments to regulate in the public interest.

Investment -- Still Negotiating Expropriation Rules, Prohibitions on Performance Requirements, Etc.

USTR states that the investment text will provide substantive legal protections for investors and investments of each TPP country in the other TPP countries, including ongoing negotiations on provisions to ensure non-discrimination, a minimum standard of treatment, rules on expropriation, and prohibitions on specified performance requirements that distort trade and investment. The investment text will include provisions for expeditious, fair, and transparent investor-State dispute settlement subject to appropriate safeguards, with discussions continuing on scope and coverage. The investment text will protect the rights of the TPP countries to regulate in the public interest.

Legal Issues - Progress on Dispute Resolution, Exceptions to TPP Obligations

TPP countries have made substantial progress on provisions concerning the administration of the agreement, including clear and effective rules for resolving disputes and are discussing some of the specific issues relating to the process. TPP countries also have made progress on exceptions from agreement obligations and on disciplines addressing transparency in the development of laws, regulations, and other rules. In addition, they are discussing proposals related to good governance and to procedural fairness issues in specific areas.

E-Commerce -- Making Progress on Customs Duties in Digital Environment, Etc.

The e-commerce text will enhance the viability of the digital economy by ensuring that impediments to both consumer and businesses embracing this medium of trade are addressed. USTR says that negotiators have made encouraging progress, including on provisions addressing customs duties in the digital environment, authentication of electronic transactions, and consumer protection. Additional proposals on information flows and treatment of digital products are under discussion.

Environment -- Discussing Green Trade, Invasive Species, Climate Change, Etc.

According to USTR, the TPP countries share the view that the environment text should include effective provisions on trade-related issues that would help to reinforce environmental protection and are discussing an effective institutional arrangement to oversee implementation and a specific cooperation framework for addressing capacity building needs. They also are discussing proposals on new issues, such as marine fisheries and other conservation issues, biodiversity, invasive alien species, climate change, and environmental goods and services.

Labor -- Discussing Labor Rights Protection, Government Coordination

TPP countries are discussing elements for a labor chapter that include commitments on labor rights protection and mechanisms to ensure cooperation, coordination, and dialogue on labor issues of mutual concern.

(See source documents for details of the texts on financial services, competition, cooperation and capacity building, and telecommunications.)

¹Currently, the U.S., Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam.

(See ITT's Online Archives 11111405 for summary of USTR welcoming Japan's announcement that it would begin consultations with TPP countries toward joining the talks and similar statements by Canada and Mexico.

See ITT's Online Archives 11103127 for summary of USTR statement that considerable progress was made in the 9th round of TPP talks, with links to other daily USTR summaries of the TPP talks.)

Trade Ministers’ Report to Leaders available here

TPP Leaders statement available here

Remarks by President Obama available here