TPP Should Provide Efficient Dispute Mechanism for SOEs, Says Lawmaker
The Trans-Pacific Partnership (TPP) should include a dispute settlement body mechanism for state-owned or state-controlled commercial enterprises (SOEs) disputes that provides accessible, timely and effective relief for U.S. businesses and workers, Rep. Mike Michaud, D-Maine, said in a Sept. 25 letter (here) to U.S. Trade Representative Michael Froman. USTR should implement explicit transparency requirements for SOE disclosure and provide a registry of SOEs that includes detailed information on specific subsidies received, said Michaud.
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“I urge USTR to create a docket through which affected parties can file petitions for Administrative action with respect to problematic activities by SOEs in TPP countries,” said Michaud. SOE definitions must also be wide-ranging in order to include those companies involved in commercial trade activities that are either “recognized as an SOE by the government or acting as an SOE,” said Michaud. The TPP framework should also include an objective injury test for companies, Michaud added.
The detrimental impact currency manipulation has on trading partners is exacerbated by SOE practice, said National Council of Textile Organizations President Augustine Tantillo in a statement (here) endorsing a recent Senate letter to USTR insisting on currency manipulation disciplines in TPP. “Countries like Vietnam have devalued its currency by more than 25 percent over the past three-years, coupled with state-owned and directed industrial sectors, and export subsidies which all give Vietnamese exports an unfair trading advantage on the global stage,” said Tantillo. A World Trade Organization Sept. 17 review of the Vietnamese economy advocated the restructuring of SOEs (see 13091819). USTR continues to eye the end of 2013 for conclusion of TPP negotiations (see 13092319).