Pacific Rim trade ministers have failed to clinch a deal to free up trade between a dozen nations after a dispute flared between Japan and North America over cars, New Zealand dug in over dairy trade and no agreement was reached on monopoly periods for next-generation drugs.
Trade ministers from the 12 nations negotiating the Trans-Pacific Partnership (TPP), which would stretch from Japan to Chile and cover 40 percent of the world economy, fell just short of a deal on Friday at talks on the Hawaiian island of Maui…
The result frustrated negotiators who had toiled to cross off outstanding issues and made significant progress on many controversial issues.
Three sources involved in the talks told the Reuters news agency that a last-minute breakthrough had been viewed as unlikely due to issues with dairy and auto trade and a standoff over biologic drugs made from living cells.
Australian Trade Minister Andrew Robb said the problem lay with the “big four” economies of the United States, Canada, Japan, and Mexico. “The sad thing is, 98 percent is concluded,” he said.
Failure to seal the agreement is a setback for US President Barack Obama, given the trade pact’s stance as the economic arm of the administration’s pivot to Asia and an opportunity to balance out China’s influence in the region…
Obama promised oil income to Canada and Mexico, agricultural income to Canada and Mexico, monopoly power to US Pharmaceutical giants and American Tech firms. Japan as our pet stalking horse on the Asian side of negotiations was promised continued niche protections which would help keep Abe’s political party in power. Everyone else was supposed to line up in tidy little rows and nod their bobbleheads. Especially those nations like Australia with Conservatives holding power.
If this doesn’t happen before the end of the year, the TPP is probably dead. An election year in the United States guarantees no legislative approvals more radical than Congress voting for baseball, motherhood and apple pie.
Prepare for five months of carrots, sticks, butt-kissing and bribes.