TPP Negotiations Make Progress But Major Gaps Remain

Trade ministers completed four days of intense negotiations in Singapore in pursuit of a Trans Pacific Partnership agreement, but much work remains to be done before a final agreement is reached. Ministers from the 12 nations announced that they have achieved agreement on “landing zones” on nearly 20 of the 29 TPP chapters. Nonetheless, outstanding issues still include market access, government procurement, environment and intellectual property rights.

Market access for sensitive agricultural products remains one of the most difficult issues, particularly for sugar, dairy and rice.

“A lot of people are watching the United States and Japan,” said Floyd Gaibler, USGC director of trade policy and biotechnology. “Rice, wheat, sugar, meat products, and dairy are especially sensitive. If the United States and Japan — the two biggest economies involved in the talks — can reach an agreement, it would be an important step towards successfully concluding the broader negotiations.”

In a Feb. 20 letter to U.S. Trade Representative Michael Froman, the U.S. Grains Council joined other U.S. business, agriculture and food processor groups in calling for a comprehensive and highly ambitious agreement in which all countries agree to eliminate tariffs, as well as non-tariff barriers to trade in goods, services and investment. The letter noted that while every nation has sensitive sectors, all parties need to offer concessions on sensitive items to reach a high-quality agreement.

The joint statement by trade ministers following the conclusion of the Singapore negotiations set no date for the next TPP meeting. There is considerable pressure to conclude the negotiations this spring with President Obama traveling to Asia in April and the Asia-Pacific Economic Cooperation trade ministers meeting in May. The administration’s efforts to push for presidential Trade Promotion Authority are also an issue of concern that must be addressed to bring the TPP negotiations to a successful conclusion.