(December 22, 2009) President Barack Obama intends to enter into negotiations for a regional, Asia-Pacific trade agreement, U.S. Trade Representative Ron Kirk notified Congress on December 14.

The goal of talks for the Trans-Pacific Partnership Agreement will be to shape a high-standard, broad-based regional pact.

President Obama announced the United States’ intention to engage with Trans-Pacific Partnership (TPP) countries on November 14 during his first trip to Asia as President of the United States.

The TPP has been underway since 2005. It includes the original members of New Zealand, Chile, Singapore and Brunei with additions of Australia, Peru and Vietnam. Japan, Korea, Canada and Mexico also have expressed interest in negotiations. One of the objectives of the TPP is to create a model trade agreement that other nations can join.

The Asia-Pacific region is a key driver of global economic growth, representing nearly 60 percent of global GDP and roughly 50 percent of international trade. Since 1990, Asia-Pacific goods trade has increased by 300 percent, while global investment in the region has increased by over 400 percent. U.S. trade with Asian countries totals nearly $1 trillion annually.

The first round of negotiations has been announced by the current TPP members for March 2010.

CalChamber Position

The California Chamber of Commerce, in keeping with long-standing policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business. New multilateral, sectoral and regional trade agreements ensure that the United States may continue to gain access to world markets, resulting in an improved economy and additional employment of Americans.

Staff Contact: Susanne Stirling