Industry News

USTR Notifies Congress of Intent to Join TPP; Requests Comments

December 28, 2009


On December 14, 2009, the U.S. Trade Representative (USTR) official notified Congress of the administration’s intent to begin negotiations for joining the regional Trans-Pacific Partnership Agreement (TPP). Current members of the TPP include Australia, Brunei, Chile, New Zealand, Peru, Singapore, and Vietnam.

The initial proposal to consider joining the TPP, made by the Bush administration, listed only Brunei, Chile and New Zealand as partners. However, despite some controversy, the Obama administration has decided to include Vietnam and New Zealand as full partners in the negotiations.

Most criticism of New Zealand is aimed at the country’s dairy industry, which is controlled by a single, government-sponsored cartel. However, the administration believes it can resolve these difficulties through negotiations with the Kiwis.

Given Vietnam’s status as a non-market economy, it is a much more controversial choice for a free trade partner. Nevertheless, Vietnam’s participation appears to be a settled matter for the administration and USTR is suggesting interested persons to suggest additional trading partners.

In preparation for the first round of talks, to be held in March 2010, USTR is accepting comments on all aspects of the negotiations, including customs rules, intellectual property protections, and how to encourage new technologies under the agreement, among other things. Although USTR will accept comments made with regard to the negotiations at any time, to ensure consideration they should be submitted by January 25, 2010.