The Trans-Pacific Partnership, one of the world’s biggest multinational trade deals, was signed by 12 member nations on Thursday (February 4) in New Zealand, but the pact will still require years of tough negotiations before it becomes a reality.
The TPP, a deal which will cover 40 percent of the world economy, has already taken five years of negotiations to reach Thursday’s signing stage.
“Signature today is an important step. But TPP is still just a piece of paper or rather, over 16,000 pieces of paper, until it actually comes into force. To make the economic opportunities of TPP a reality for our businesses and our consumers, our investors and our workers, we need to complete our respective domestic processes so we can ratify TPP and bring it into force,” said New Zealand Prime Minister John Key at the ceremony in Auckland.
The TPP will now undergo a two-year ratification period in which at least six countries, which account for 85 percent of the combined gross domestic productio
n of the 12 TPP nations, must approve the final text for the deal to be implemented.
The total 12 nations are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Given their size, both the United States and Japan would need to ratify the deal, which will set common standards on issues ranging from workers’ rights to intellectual property protection.
Opposition from many U.S. Democrats and some Republicans could mean a vote on the TPP is unlikely before President Barack Obama, a supporter of the deal, leaves office early in 2017.
U.S. Trade Representative Michael Froman has said the current administration is doing everything in its power to move the deal and on Thursday told reporters he was confident it would get the necessary support in Congress.
“We are working with our stake holders, we are working with members of Congress and we’re working with the leadership of the Congress, educating everybody as to what’s in the agreement, addressing their questions and concerns and I’m confident at the end of the day, because of the strong benefits to the U.S. economy which have been estimated to be over $130 billion a year of GDP growth as well as more than $350 billion of exports that members of Congress will see the benefits for their constituents and will have the necessary bipartisan support to be approved,” said Froman.
In Japan, the resignation of Economics Minister Akira Amari – Japan’s main TPP negotiator – may make it more difficult to sell the deal in Japan.
There is widespread grassroots opposition to the TPP in many countries. Opponents have criticised the secrecy surrounding TPP talks, raised concerns about reduced access to things like affordable medicines, and a clause which allows foreign investors the right to sue if they feel their profits have been impacted by a law or policy in the host country.
In New Zealand on Thursday more than 1,000 protesters caused traffic disruptions in and around Auckland and police said a large number of police have been deployed.
Chile’s Foreign Minister Heraldo Munoz predicted “robust democratic discussion” in his South American nation.
Australian Trade Minister Andrew Robb said the agreement would be tabled next week in parliament. Opposition to the deal in Australia has been building, but Robb was confident it would be approved, despite the government not control the Senate.
Canada’s new government signed the deal on Thursday, but Trade Minister Chrystia Freeland has said “signing does not equal ratifying.”
She emphasised that the government committed itself to a wide-ranging consultation on the TPP during its election campaign and that process was currently underway.
Secretary of the Economy for Mexico, lldefonso Guajardo, said the TPP would be voted on before the end of 2016, while Malaysia said the deal had already been approved, although some legislative changes were still needed.
Reuters
