The
Trans-Pacific Partnership (TPP) framework being worked on will regulate trade
and government-private sector relations in the world's strongest growth region
well into the century.
It could be an exemplar in the spread of
prosperity that past global trade codes and the current struggling Doha round
have not managed well enough. That makes it crucial for the TPP negotiating
parties to get the mechanics right and the membership as complete as possible.
On no account should the TPP be deliberately selective: Any Pacific-rim nation
that meets compliance standards and accepts the objectives of association
should be welcomed. Apec nations are right to wonder whether it will make sense
for a Pacific trade framework to be missing China: Shades of Hamlet without the
prince? Indonesia, a rising star and a market to die for, is also missing. If
the geographical definition were not so literal, contiguous India would also be
a power of good being included.
But China is the one imponderable.
The United States is setting the pace in the
TPP's formation as part of its scheme of Pacific engagement, while conflicting
signals are coming out of China. Does it want in or out? Does it see obstacles?
The TPP will start life badly if it inadvertently is turned into a contest for
influence between the world's two pre-eminent powers. One wishes for clarity -
and soon. This is a big deal. A working deadline of under a year which has been
reportedly set for the TPP's inauguration is patently optimistic, but it says
time is short for the membership to be formalised. No nation will want to be
admitted into a complex legal formulation after the fact, often with political
trade-offs.
Above all, there should be no illusions that a
dozen countries agreeing on standard schedules on tradeables and the fine print
on non-tariff matters will be easy to pull off. Japan's declared interest in
entering negotiations is positive, but its inclusion could also draw out the
process. Its powerful farm sector could yet force the country's enthusiastic
new prime minister to reconsider if the political cost of dismantling
agricultural tariffs is too high. Agriculture was a stumbling block to a Doha
conclusion.
Government procurement policies contrary to
rules of competition are not confined to Malaysia's preference for state-owned
and bumiputera firms; more nations now routinely favour their own companies
under the "domestic first" policy. Intellectual property protections
also are not universally acknowledged or applied. These are not insurmountable
difficulties. But exemptions sought or a fudging of nettlesome issues will not
make for a model instrument that the TPP aspires to be.
News Desk
The Straits Times
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment