1.2. Trans-Pacific Partnership Agreement (TPP)
1.2.5. Negotiating process and the main results
The structure of negotiation: Negotiated issues in TPP are divided into 20 working groups, including Market Access; Technical Barriers to Trade; Sanitary and Phytosanitary Measures; Rules of Origin; Customs Cooperation; Investment; Services;
Financial Services; Telecommunications; E-Commerce; Business Mobility;
Government Procurement; Competition; Intellectual Property; Labor; Environment;
Capacity building; Trade Remedies; Legal and Institutional; and Horizontal Issues.
This is not a definitive list and appears to be changing over time.
During each round, the Chief Negotiators meet separately during each round to consider:
- Management issues such as negotiating process, new membership, Ministerial Meetings, media coverage and next steps;
- Horizontal issues such as development, SMEs, transparency, competitiveness and regulatory coherence; and
- Reports, decision points and the work programs submitted by the individual working groups.
A unique feature of TPP negotiations is the stakeholder consultations. These stakeholder consultations take the form of seminars, briefings and presentations where stakeholders are welcomed to share their points of view with each other as well as negotiators. They have come from the industry, civil society as well as specific labor and environment interest groups. There is also a session where the Chief Negotiators collectively meet with the stakeholders who want more direct consultations.
Process of negotiation: In September 2008, comprehensive negotiations for the United States to join the P4 Agreement were launched informally. The first round of formal negotiations was originally scheduled to commence in March 2009, with Vietnam expected to join as an observer; and Australia and Peru intending to participate.
However, with the intervening change in U.S. administration, the first round of
negotiation was deferred until March 2010 when the Obama administration conducted a general review of U.S. trade policy.
By the end of 2011, the TPP has witnessed 10 formal negotiation rounds within two years.
(a) The first round of TPP negotiations was held in Melbourne on 15th to 19th March 2010, with the participation of over 200 officials from 8 member countries Australia, US, New Zealand, Chile, Singapore, Brunei, Peru and Vietnam.
Firstly, TPP officials exchanged views on issues that should be covered, especially cross-cutting issues. They focused on how to make doing business faster, cheaper and easier, even for SMEs under a region of regulatory coherence, transparent competition.
Secondly, TPP Parties agreed on a substantial forward work program including new areas that they may be able to incorporate in the agreement, and exchange of information on their respective laws, regulations and practices as well as other matters.
Lastly, TPP negotiators also discussed the goal and process of expanding the agreement to countries throughout the Asia-Pacific region.
(b) The second round of TPP negotiations was held in San Francisco from 14th to 18th June 2010.
Scope of FTAs was also the first problem in this negotiation. A wide range of more traditional FTA issues were determined, including goods, services, investment, government procurement, intellectual property, technical barriers to trade, competition policy, legal and institutional issues; and capacity building. Discussions also focused on what types of trade and labor and trade and environment provisions would be appropriate for TPP. Chief Negotiators also agreed on a set of cross-cutting 21st century issues such as: small business; behind the border issues like reducing customs paperwork; regulatory coherence including through encouraging cooperation between
regulatory bodies; the competitiveness of TPP Parties; transparency in terms of regulation and administrative processes and the needs of developing countries.
Secondly, TPP Parties Agree that existing FTAs between TPP Parties would continue to co-exist alongside the TPP, which allow businesses to choose the best treatment for their particular good, service or investment.
Thirdly, TPP members agreed on a forward work program that includes preparation of elements papers for discussion, possible textual proposals, as well as information exchange on various topics in the next round.
Lastly, participants also agreed on an intensive schedule for 2010-2011 in order to make maximum headway in the lead-up to the APEC Leaders meeting in Honolulu in November 2011. However, no deadline has been set to conclude the negotiations.
(c) The third round of TPP negotiations was held in Brunei from 4th to 9th October 2010 with the participation of new member, Malaysia.
24 negotiating groups discussed issues such as industrial goods, agriculture, standards, services, investment, financial services, intellectual property, government procurement, competition, labor and environment. Discussions on objectives and approaches for goods market access continued with a process to begin market access negotiations being offered. Cross-cutting issues were connectivity in the region by creating opportunities to maximize supply chain efficiencies; greater regulatory coherence;
SMEs and supporting development. In addition, TPP officials organized technical assistance seminars alongside the negotiations on sanitary and phytosanitary standards and trade-related labor and environment issues in order to build capacity on these issues.
(d) The fourth round of TPP negotiations was held in Auckland from 6th to 10th December 2010 where Vietnam participated the first time as a full TPP member.
Firstly, 20 groups in the scope of TPP continued to be discussed. Cross-cutting issues that were explored in the negotiations were regional integration in the Asia-Pacific;
compatibility and coherence of TPP regulatory systems; a living agreement which adapts to changing business needs and can accommodate new TPP members over time Supporting development including through appropriate and ongoing technical assistance and capacity building.
Secondly, officials also finalized preparations for the exchanges of initial market access offers on goods which are scheduled to take place in January 2011. Negotiators also made headway towards exchanging initial services and investment offers in March 2011.
Lastly, there was a high level of interest from stakeholders in the negotiations, with attention of more than 100 representatives from business groups, NGOs and academics.
(e) Chile hosted the fifth round of TPP negotiations in Santiago from 14th to 18th February 2011, with 9 TPP countries.
Firstly, negotiators worked through the draft texts, seeking narrow differences and to consider interests and concerns of each country. They focused on competitiveness and facilitating business in the region; SMEs’ participation; production and supply chain linkages between TPP countries; coherence of the regulatory systems and development.
Secondly, goods negotiators agreed to exchange lists of requests for improvements in these initial offers next month ahead of the next round in Singapore at the end of March. TPP Parties also agreed to exchange initial market access offers on services, investment and government procurement before the next round. Services and investment offers will be made on a negative list basis, to all TPP parties.
Lastly, TPP officials received input from a wide range of representatives of business, civil society and other stakeholder groups on a variety of issues ranging from labor law and practice, to intellectual property and financial services.
(f) The sixth round of TPP negotiations held in Singapore from 24th March to 1st April 2011.
Negotiators at this round focused on narrowing the gaps in positions on the draft text and discussing initial market access offers.
Besides issues as the last rounds, Parties discussed how such concepts could be implemented in the context of TPP and considered some textual proposals.
On 27 March 2011 a Stakeholders’ Forum with attendance of more than 50 representatives from business groups, academics and NGOs. In addition, a labor seminar was held on 30 March 2011 which focused on key issues facing workers and businesses and how relevant issues may be addressed in TPP.
(g) The seventh round of TPP negotiations was held in Ho Chi Minh City, Vietnam, from 15th to 24th June 2011.
Parties worked to consolidate existing text and considered new text proposals in various working groups, including intellectual property, services, transparency, telecommunications, customs and environment.
In cross-cutting issues, besides negotiated ones, countries also had productive discussions on development and the importance of ensuring the agreement served to close the development gap among them.
In goods market access, members discussed respective offers and approaches that would facilitate the achievement of an ambitious outcome. Some countries provided revised tariff offers following requests for improvements on their initial market access offers.
In the services, investment and government procurement working groups, parties further advanced discussions of market access commitments and responded to questions that had been posed on non-conforming measures.
A Stakeholders Forum was held on 19 June and was attended by a range of industry groups, academics, businesses and non-government organizations. The opinions of stakeholders varied from support for ambitious commitments to concern that such commitments would not serve the interests of developing countries.
(h) The eighth round of TPP negotiations was held in Chicago, United States, from 6th to 15th September 2011.
TPP Parties continued settling the broad outlines by the APEC Leaders Meeting in Honolulu in November.
Solid progress was made in negotiations on Customs, SPS, TBT, Telecommunications and Government Procurement. A number of text proposals are still being developed with discussion on the 21st century “horizontal” issues. Market access to goods, services and investments continued to be discussed in this negotiation.
A large Stakeholders Forum was held on 10 September and attracted 250 delegates.
There were more than 60 presentations at the forum, conveying the interests of the private sector, industry groups, academia and civil society.
(i) The ninth round of TPP negotiations concluded on 28 October in Lima, Peru.
Progress continued to be made on the text of the agreement, with significant progress made in a number of issues. There was steady progress in the market access negotiations on goods, services and investment, and government procurement. Parties plan to prepare revised offers based on these discussions and requests made for improvements in specific areas, continuing the process of building an ambitious market access outcome.
There are a number of sensitive and complex proposals, including on intellectual property and transparency. It should be noted that any TPP member is at liberty to make any proposal it chooses but a proposal is simply that - text proposals have no status unless agreed by all the parties.
(j) TPP negotiating parties conducted a mini-round – the tenth round in Kuala Lumpur, Malaysia from 5th to 9th December.
Only a small number of negotiating groups met including rules of origin, services, investment and intellectual property, market access on industrial goods, agricultural and textile. All made further progress in narrowing gaps on issues in the legal texts and negotiation of market access arrangements.
Negotiations in 2012: Australia has offered to host the next full negotiating round in early March 2012 in Melbourne and planning is currently underway. Like previous negotiating rounds, there will be opportunities for stakeholders to engage with negotiators at several events during the round.
Membership: Japan, Canada and Mexico have formally expressed interest in joining the TPP negotiations. They will now begin by undertaking a bilateral process with member countries to discuss their readiness to join, and their capacity to maintain both the ambition and pace of the negotiations and then final decisions will be taken by a consensus of all current TPP parties.