(June 10, 2010) The second round of Trans-Pacific Partnership negotiations will be held in San Francisco the week of June 14.
The date was announced at the California Chamber of Commerce International Forum in Sacramento on May 17 by Ambassador Demetrios Marantis, deputy U.S. trade representative (USTR).
The USTR is “excited to host the second round and continue to move forward with negotiations,” according to the press office.
Through the Trans-Pacific Partnership, the Obama administration is seeking to develop “a high-standard, 21st century, regional trade agreement that will advance U.S. interests with some of the most dynamic economies in the world and help expand U.S. exports to support high-paying, high-quality jobs in the United States,” the USTR stated in a release.
Background
The Trans-Pacific Strategic Economic Partnership Agreement was signed by New Zealand, Chile, Singapore and Brunei in the summer of 2005.
Negotiations for the United States to join the Trans-Pacific Agreement were launched in September 2005. Australia, Peru and Vietnam also indicated interest in participating in negotiations from the first round.
The original Trans-Pacific Agreement negotiations were launched by Chile, New Zealand and Singapore at the Asia-Pacific Economic Cooperation (APEC) leaders summit in 2002. After attending a number of rounds as an observer, Brunei joined the Trans-Pacific Agreement as a “founding member.”
Following the passage of implementing legislation and regulations in March and April 2006, the Trans-Pacific Agreement entered into force on May 1, 2006 for New Zealand and Singapore, Brunei on June 12, 2006, and Chile on November 8, 2006.
One of the objectives of the Trans-Pacific Agreement is to create a trade agreement that can be seen as a model within the Asia-Pacific region and could potentially attract new members. The agreement is open to accession “on terms to be agreed among the parties, by any APEC economy or other state.”
As part of the original negotiations in 2005, participants agreed to begin negotiations on financial services and investment within two years of entry into force. Those negotiations began in March 2008, with the United States participating while it considered whether to enter into negotiations to join the Trans-Pacific Agreement on a comprehensive basis.
Key Growth Driver
The Asia-Pacific region is a key driver of global economic growth, representing nearly 60 percent of global gross domestic product (GDP) and roughly 50 percent of international trade. The average GDP growth rate in the rapidly growing and dynamic countries in this region was 5.3 percent in 2007, compared with the world average of 3.8 percent.
Since 1990, Asia-Pacific goods trade has increased by 300 percent, while global investment in the region has increased by more than 400 percent. U.S. trade with Asian countries totals nearly $1 trillion annually.
Even though U.S. exports to Asia continue to rise, the United States is gradually losing market share. Asian countries have negotiated more than 160 trade agreements among themselves, while the United States has signed only two (Singapore and Australia). A third agreement, with Korea, awaits congressional approval.
The CalChamber supports 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.
More Information
Detailed information vital to the businesses that make California one of the largest exporting states in the nation and one of the largest economies in the world is available in the international trade section of the CalChamber website: www.calchamber.com/international.
Staff Contact: Susanne Stirling