The Trans-Pacific Partnership is back on, and has been renamed the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). Who the hell thought of that name? But it’s just a long winded name.
RNZ: TPP deal revived once more, 20 provisions suspended
The Trans Pacific Partnership (TPP) trade deal remains on track to be agreed by the eleven nations involved.
It has been a tumultuous couple of days for ministers and trade negotiators at Da Nang in Vietnam: 24 hours ago, the deal looked close to collapse, after Canada’s representatives failed to show for a meeting.
A key concern from Canada was reported to be that Malaysia and Vietnam wanted to opt out of requirements for fair workplace laws, including the elimination of child and forced labour.
Speaking to reporters late last night, the Canadian Prime Minister Justin Trudeau said there was “still more important work to be done to ensure we reach the best deal for Canada and Canadian people”.
Everyone wants the best deal for their own countries and people, but they will only reach agreement by compromising.
But more high-pressure talks have brought agreement – in principle – on the “core elements” of a deal.
The officials did it by suspending 20 provisions of the original TPP, some of which related to protecting labour rights and the environment, although most dealt with intellectual property.
Stuff: Renamed TPP ‘a damned sight better’, could be in place in a few months
Prime Minister Jacinda Ardern made it clear on Saturday that concessions won, particularly on controversial investor-state disputes settlement clauses, had cleared the way for New Zealand to sign.
“This is not a perfect agreement but it is a damned sight better than what we had when we started,’ she told reporters after the leaders’ retreat at the Apec summit in Da Nang, Vietnam.
“It is not perfect, no free trade agreement is. But it’s a lot better than where we were three weeks ago.”
That will please some but others will never be happy with any trade agreement.
Trade ministers, including New Zealand’s David Parker, issued a statement acknowledging agreement on the core elements of the CPTPP.
They also released a list of “suspended issues”, which were essentially those that had been important to the US.
They can now only be written back into the deal by negotiation – and only by consensus of all the parties – if the US seeks to rejoin, perhaps in the post-President Donald Trump era.
That’s at least three years off. There’s obviously no need for US specific clauses.
That, in theory, means New Zealand can prevent the suspended changes to the ISDS regime from re-entering the agreement.
“If America comes in, it’s not an automatic lifting of those suspended provision … we worked hard to have lifted,” Ardern said.
The agreement would now be taken back to a select committee for the public and Parliament to assess it.
It will be interesting to see how much it is protested this time.
Ardern said New Zealand negotiators had worked hard on the ISDS clauses, which allow corporations to take legal action against host countries in special tribunals.
They have been narrowed in three areas:
* First, they no longer apply to investor screening, so decisions made under the Overseas Investment Act regime, administered by the Overseas Investment office, could not be challenged. Ardern said that was perhaps the most important change.
* Second, anyone who takes up a contract with the government would no longer be able to sue through ISDS provisions but must instead use domestic procedures.
* The third change related to financial services.Also, a side letter with Australia has ruled out the use of ISDS provisions between the two countries, meaning ISDS does not apply to 80 per cent of foreign direct investment from TPP nations.
A “handful” of other countries have agreed in principle to ISDS side letters. but Ardern said she could not disclose them now.
Ardern said the ISDS provisions in the CPTPP were now similar to previous trade agreements New Zealand has signed, such as with China and Malaysia.
New Zealand had wanted to go further, but she regarded the progress over just a few weeks since she came to office as “a good outcome”.
But New Zealand had now put a line in the sand.
“We will not sign up to future agreements that include those clauses.”
Other suspensions in the new CPTPP included to copyright provisions. The US had achieved a “life plus 70 years” rule, but that would now drop back to the current “life plus 50 years”. That was worth $50 million to $55m a year to New Zealand.
Also, disclosure and administratives rules imposed on drug buying agency Pharmac would now be suspended, which would have cost $5.5m up-front and $2.5m a year.
The remaining hurdles to all 11 CPTPP nations are four outstanding issues, on which negotiation was still required.
They included how long Vietnam had to meet certain labour standards, and the time when Brunei and Malaysia will make changes to restrictions in their oil and gas industries.
The fourth issue applies to Canada, which is arguing for a “culture” carve out – essentially so it can offer bigger subsidies for French-language programming. New Zealand was a supporter of Canada on that issue.
So the CPTPP could take a while yet but looks back on track.
A fresh approach to negotiations with new leadership may have been a good thing for New Zealand.
Blazer
/ 12th November 2017‘That will please some but others will never be happy with any trade agreement’…some will see that its not a ‘TRADE’ AGREEMENT..even the old name and the new name…reflect this.
Pete George
/ 12th November 2017Trade is it’s primary purpose. That’s why New Zealand’s Minister of Trade is leading our negotiations, also Canada’s and Australia’s and Japan’s…
https://www.japantimes.co.jp/news/2017/11/11/business/economy-business/eleven-trade-ministers-reach-deal-tpp-without-u-s/
Pete George
/ 12th November 2017https://www.reuters.com/article/us-apec-summit/asia-pacific-leaders-say-to-fight-unfair-trade-in-nod-to-trump-idUSKBN1DA2MW
Blazer
/ 12th November 2017what was it again..30 chapters,with 6 about..trade.
Corky
/ 12th November 2017Be strong, Blazer. I’m sure Jacinda knows what she’ll sign away.Your sovereignty. But hey, what the hell! Ultimately, the world, just like in the Sci-Fis, will be run by a major corporation(s). The UN realise that, hence their push to be top dog before any coroporation gains a major gobal advantage.
Blazer
/ 12th November 2017one small consolation,the deal will be light years better than master negotiator..Tim the ‘ratman’ Groser ..made.They should pull that mug back from Washington too.Wasted enough on one bloke.
artcroft
/ 12th November 2017Says the guy whose never read it.
Blazer
/ 12th November 2017and you have read it ,of course,the whole 30 chapters before..breakfast.
artcroft
/ 12th November 2017Is there the possibility that China will join? If so what effect will that have on the US seeing as they would be locked out of what would be the worlds largest trade agreement.
Gezza
/ 12th November 2017It’s a heavy responsibilidy this business, & The New Queen seems to have carried it well.
Next up in her pryorridees in ineqalidy.
Gezza
/ 12th November 2017* is. (Mine is proof-reading)
Gezza
/ 12th November 2017Who’s got it in for proof-reading? 😡
NOEL
/ 12th November 2017Canadian perspective.
ww.cbc.ca/news/politics/tpp-apec-summit-talks-1.4396984
NOEL
/ 12th November 2017sorry missed out the world
http://www.cbc.ca/news/politics/tpp-apec-summit-talks-1.4396984
Gezza
/ 12th November 2017Cheers Noel, quite informative.
NOEL
/ 12th November 2017Thanks, I’m guessing the culture bit will allow the Waitangi Treaty to maintain it’s place.
From memory this was a major issue for many protestors.
Gezza
/ 12th November 2017Yep. One hopes.