Japanese Auto Concessions Insufficient, Says Froman; Export-Led Recovery Rests on TPP

“Before Japan joined … we had extensive discussions about what would be expected as a TPP partner and we made clear, for example on autos, the agreements we would need upfront and the issues we would want to address the historical barriers to access that have plagued U.S. automakers to that market for several decades,” said Froman. “We’re making progress in those negotiations, but we’re not there yet. As we speak, our negotiators are in Tokyo working with their counterparts on this and we hope they continue to make progress because we made clear that a robust outcome on autos is absolutely critical if we’re going to complete TPP with Japan.”

Through TPP, the U.S. is proposing intellectual property rules, consistent with U.S. law, which will enable varying access to patented medicine in order to enable poorer countries to purchase medicines at lower costs, said Froman. Labor and human rights groups criticized in November a leaked TPP intellectual property chapter they say would scale back international access to medicine (see 13111323).

The Obama Administration is also increasing trade negotiation transparency, congressional consultation and access to negotiating text, and stakeholder engagement, said Froman, announcing the establishment of a Public Interest Trade Advisory Committee. “We and the Commerce Department are in the process of re-chartering our advisory committees. As we put out the Federal Register notice, we invite representatives from all relevant constituencies to apply,” said Froman. “We’re upgrading our advisory system to provide a new forum for experts on issues like public health, development and consumer safety. The Public Interest Trade Advisory Committee, or PITAC, will join the labor advisory committee and the trade in environment policy committees to provide cross-cutting platforms for input in the negotiations.”

The PITAC committee will provide important consumer, advocacy insight into U.S. trade negotiations, said Senate Finance Committee Chairman Ron Wyden, D-Ore., in a statement following the announcement. “The Public Interest Trade Advisory Committee announced today is a step in the right direction toward making sure transparency, health, and consumer interests become central issues in the trade negotiation process," said Wyden. "I am pleased that USTR is beginning to get the message that transparency and broader public participation is in everyone’s interest, and I look forward to continuing to work with Ambassador Froman to identify additional steps the Administration can take to demonstrate that transparency is a priority.”

The prospective TPP pact also represents a significant step in the right direction in defining rules to safeguard the environment, including endangered species protections, and labor standards worldwide, said Froman. The U.S. is taking the lead in the environmental rules battle through TPP, Transatlantic Trade and Investment Partnership and World Trade Organization channels, said Froman. The Obama Administration unveiled on Feb. 11 a multi-faceted strategy to curtail elephant tusks and rhinoceros poaching (see 14021126). African and Asian elephants are both on the World Wildlife Fund endangered and vulnerable species list (here). The U.S., along with 13 other nations and the European Union (EU), also announced on Jan. 24 an initiative to eliminate environmental good tariffs (see 14012411).

The U.S. economic recovery is reliant on export boost through TPP, as well, said Froman. “America already has one of the most open economies in the world. Our average applied tariffs are 1.3 percent and we don’t use regulation to discriminate against foreign goods. Whether we pursue trade agreements or not, the U.S. will continue to see foreign imports because our consumers demand them and we have virtually no barriers to imports, said Froman. “The reality is this. Trade done right is part of the solution, not part of the problem … Today the post-crisis surge in exports we’ve experience over the last few years is beginning to recede. That’s why we’re working to open markets in the Asia Pacific and Europe to eliminate tariffs on information technology products and environmental goods.” Congress is able to incorporate the May 10th agreement on labor and environment standards into U.S. law through TPA, said Froman, without specifying the method of doing so. House Ways and Means Committee ranking member Sander Levin, D-Mich., said the current version of TPA, the Bipartisan Congressional Trade Priorities Act of 2014, falls short of the May 10th agreement, in a rejection of the legislation (see 14011013).

The U.S. has an opportunity to elevate labor and environment standards through multilateral negotiations, despite a recent outcry over Trade Promotion Authority and TPP, said President of the Center for American Progress Neera Tanden in opening remarks. Increasing global, commercial relationship also have the potential to worsen wealth disparities, said Tanden. “Some aspects of globalization have been a global arbitrage of labor, first hitting low skilled workers but increasingly hitting other workers, as well,” said Tanden. “The United States is and always has been a trading economy. With imports and exports amounting to 30 percent of our GDP, trade is hard-coated into the American DNA.” -- Brian Dabbs