Japan, Canada Continue to Block Progress on TPP, Says Froman
The U.S. would likely have sealed a final Trans-Pacific Partnership (TPP) pact by now if Japan and Canada were willing to make sufficient concessions on agriculture market access, said U.S. Trade Representative (USTR) Michael Froman at the Atlantic Annual Economy Summit on March 18. Japan continues to refuse tariff elimination on rice, meat, wheat, dairy and sugar, while Canada is reluctant to concede dairy and poultry, according to USTR and independent observers (see 14022504). Japanese intransigence has emerged as a contentious issue in recent weeks (see 14021902).
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“It’s not just a U.S.-Japan issue. What was absolutely clear from our last several rounds of negotiations is that all the other countries in TPP are also looking to Japan to open its market and view that as a critical part of moving forward,” said Froman. The U.S. and 10 other TPP partners admitted Japan, the most recent entry, in April 2013 (see 13042208). Comprehensive U.S. access to Japanese and Canadian markets is critical to achieving the maximum TPP potential for U.S. exporters, following a year in which the U.S. recorded the highest agriculture export figures in history, said Froman. The U.S. exported $140.9 million in agriculture in Fiscal Year 2013 (see 13112005).
“Everybody agrees that exports are good. On the import side it’s a much more mixed story because a lot of our imports, over 50 percent of our imports, are intermediate products … are inputs into things that we manufacture, either for our own market or for export,” said Froman, noting that 13 million U.S. jobs are tied to exports. “Some imports do displace domestic production and some imports are critical to American production and help us remain competitive in the global marketplace.”
The Obama administration is still lobbying to muster bipartisan support for Trade Promotion Authority (TPA) in Congress, but the legislation may have hit a snag in the recent Senate Finance committee leadership change, said Froman. “It is certainly an issue that is on the minds of all of our trade partners,” said Froman, referring to the legislation. “There’s been a transition at the Finance committee. Chairman Wyden has now stepped into that position. He’s going to want to take the time necessary to confer with the Democrats, as well as the Republicans on that committee, as well as his colleagues in the House.” Sen. Ron Wyden, D-Ore., replaced former Sen. Max Baucus, D-Mont., as Finance chairman in February (see 14022001). TPA legislation has received both vocal support and opposition since its introduction in January (see 14011013). -- Brian Dabbs