Sep 5, 2012

Singapore - U.S. Trade Rep Confident About Trans-Pacific Partnership

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SINGAPORE – The top U.S. trade negotiator said he doesn’t see plans for an Asia-only trade pact that would bind China and Japan to other economies throughout the region as a threat to U.S. economic interests.

Instead, U.S. Trade Representative Ron Kirk said he wants to accelerate efforts to conclude the Trans-Pacific Partnership deal, which includes a handful of Southeast Asian countries but excludes China and Japan, at least for now.

“I am reasonably confident we’ll get the TPP finished before the [Asia-wide free trade zone] comes into being” Mr. Kirk said in a telephone interview Sunday, even though discussions about a free trade area across Asia have gathered momentum recently.

Mr. Kirk spoke from Hanoi, where he met with Vietnamese officials after taking part in a meeting of economic chiefs from the Association of Southeast Asian Nations in Cambodia.

The Southeast Asia visit by Mr. Kirk is part of a broader effort by the Obama administration to cement U.S. ties in Asia–and to counter China’s rising influence in the region. It comes as Secretary of State Hillary Clinton swings through the region, during which she will seek to defuse tensions in territorial disputes that have flared up in the South China Sea and in North Asia.

Mr. Kirk said he believes trade has a role to play in ensuring such disputes don’t get out of hand. “One way to inoculate yourself against strategic conflagrations is to make sure you have strong commercial relations. Countries that trade with one another don’t go to war with one another,” he said.

Mr. Kirk’s participation in last week’s Asean trade meeting, relatively rare for a U.S. envoy, was overshadowed by an announcement that the group has agreed in principle with China, Japan, Australia and others to launch negotiations on a region-wide free trade zone.

“The United States is operating under a mandate from President Obama that we will use every avenue available to us to create new markets for American jobs at home,” said Mr. Kirk. “We cannot and don’t begrudge any other economies from doing the same.”

The TPP talks are well underway, in their fourteenth round of negotiations since talks launched in 2010, but they are about to get a new wrinkle with Mexico and Canada joining negotiations. Mr. Kirk said there is a pressing need to make progress at the next round of talks this week in Leesburg, Va., before the new partners are added. The negotiations currently involve Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the U.S., and Vietnam.

He praised Vietnam for its contributions even though the country has little experience with trade negotiations, and is at a lower level of development than other TPP partners. “It’s a brutally tough thing because you’ve got to make some big hard decisions, and they deserve a lot of credit,” he said.

Mr. Kirk has served since the very beginning of the Obama administration in 2009, but he said he likely won’t stay on even if Mr. Obama is re-elected. “The president deserves a fresh set of eyes and ears,” he said.

Martin Vaughan


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