THE TTALK QUOTES 

On Global Trade & Investment

 

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No. 67 of 2014 

THURSDAY, OCTOBER 2, 2014     

 

   

Filed from Portland, Oregon  

     

Click here for Tuesday's quote from the National Pork Producers Council
JAPAN AND TPP: FROM MEMBERS TO THE PRESIDENT

"[W]e urge you to hold Japan and Canada to the same high standards as other TPP partners.  Otherwise, Congressional support for a final TPP agreement will be jeopardized."

Rep. Devin Nunes (R. CA)
Rep. Charles Rangel (D. NY)
Rep. Frank Lucas (R. OK)
Rep. Mike Thompson (D. CA)
136 Other Members of Congress
July 30, 2014
CONTEXT
Today's quote is from a letter on TPP, the Trans-Pacific Partnership Agreement, which 140 Members of Congress sent to President Obama at the end of July.  The number of signatories alone is impressive - almost one-third of the House.  So too are the individual names.  Ways and Means Committee Chairman Dave Camp is a signatory, along with the Committee's Ranking Member Charles Rangel.  And from Oregon, Rep. Kurt Schrader signed.

Japan is the sole focus of the letter's opening paragraph.  "When Japan joined these negotiations," the members wrote, "it agreed that the elimination of tariffs is a key feature of the agreement, as announced by TPP leaders on November 12, 2011.  Unfortunately, Japan's current position falls far short of acceptability."  In the second and third paragraphs, however, there are two target countries: Japan and Canada.

The letter itself is fairly short.  Nine of its 10 pages are taken up with signatures.  Here is the full text of what comes between "Dear Mr. President" and "Sincerely":

Text of the TPP Congressional Letter of July 30, 2014

We write to express our deep concern over Japan's current market access *offer within the ongoing Trans-Pacific Partnership (TPP) negotiations. When Japan joined these negotiations, it agreed that the elimination of tariffs is a key feature of the agreement, as announced by TPP leaders on November 12, 2011. Unfortunately, Japan's current position falls far short of acceptability.

Specifically, Japan is seeking to exempt numerous tariff lines from complete elimination with the United States. If accepted, this unprecedented and objectionable offer would significantly limit access for U.S. farmers and ranchers to the Japanese market, and most likely, to other TPP countries as well. Furthermore, caving to Japan's demands would set a damaging precedent, compromising the U.S. negotiating position with future TPP members. This result runs the significant risk that the EU will be encouraged to make unacceptably weak offers in the Transatlantic Trade and Investment Partnership negotiations, undermining Congressional support.  In that same vein, we are also troubled by Canada's lack of ambition, which is threatening a robust outcome for U.S. farmers.

The Trans-Pacific Partnership was envisioned as a high-standard, 21st-century trade agreement that would be a model for all future U.S. free trade agreements. To realize this goal, we urge you to hold Japan and Canada to the same high standards as other TPP partners.  Otherwise, Congressional support for a final TPP agreement will be jeopardized.  Indeed, we urge you to pursue the TPP negotiations without any country, including Japan, Canada, or others, that proves unwilling to open its market in accordance with these high standards. We owe our farmers and ranchers the best deal possible.

END TO TEXT

COMMENT
Some of this was foreshadowed in the trade speech Chairman Camp gave at the Global Business Dialogue on June 19.  The need for Trade Promotion Authority was, arguably, the principal message of that speech, but Mr. Camp also used the occasion to highlight concerns about the TPP negotiating positions of both Japan and Canada.  He said:

"I am deeply concerned that Japan is stubbornly refusing to remove all of its severe restrictions that prevent our access to its agricultural and auto markets. ...And Japan is not the only problem on market access:  Canada insists - without justification - on maintaining its steep barriers on dairy and poultry."

*****

In Tuesday's entry we highlighted a statement on TPP from the National Pork Producers Council, which is calling for concluding TPP without Japan if that country cannot eliminate its tariffs on key agricultural products.  We noted that others have made the same argument.  At the time, we were not aware of the Congressional letter that is the source for today's quote.  Politically, this is perhaps the most powerful expression of the "without Japan" proposal.

Finally, tempting as it may be for Americans to lump Canada and Japan together, America's relationships with the two are profoundly different.  As currently structured, TPP can be seen - at least in part - as an FTA negotiation between the United States and Japan.  That's not the case with Canada.  The U.S. has an FTA with Canada.  Signed by the leaders in 1988 and implemented in 1989, the Canada-United States Free Trade Agreement, now largely melded into NAFTA, was the first of America's current FTAs.
SOURCES & LINKS
From Congress to the President is a link to a pdf copy of the July 30 letter that was the source for today's quote.

Camp at GBD takes you to the text of Chairman Camp's June 19 speech to the Global Business Dialogue. 
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