Trans-Pacific Partnership Summits: Groundhog Day

Another Obama-Abe Summit has come and gone.  It’s time to pack up the good china and bring out the boxing gloves.  The same pattern led up to this Summit as last year.  Overselling hype until the reality of the continuing impasses precluded anything other than a declaration of progress and exhortations for closure of a trade negotiation claimed to be in its “final stages”.

Japanese Prime Minister Shinzō Abe’s comments to the OECD after the 2014 Summit were virtually identical.  He said:

“Negotiations are also in their final phase on the Trans-Pacific Partnership Agreement…” and “Japan and the United States will act in co-operation to accelerate negotiations further towards the early conclusion of the negotiations by the 12 participating countries as a whole.”

Sound familiar?  This is déjà vu all over again – Groundhog Day for trade negotiators on a grand scale.

Read more here: http://www.nationalnewswatch.com/2015/05/07/trans-pacific-partnership-summits-groundhog-day/#.Vld_5narSUk

“Outing” the Global Agricultural Trade Cheats

Free trade in agriculture is a Holy Grail often espoused by those who do not understand the complexities of agricultural production or the extent of rules-breaking in global markets for farm products.  It was not an accident that trade in agriculture was largely outside the GATT rules-based global trading system until 1994.

The brave experiment of the WTO Agreement on Agriculture has encountered considerable difficulty in building on initial progress.  Key players are unwilling to adopt new disciplines. Add to this the fact that rules about subsidies and disciplines are written to accommodate the practices of the deep-pocketed subsidizers.  Regional and Plurilateral Agreements cannot address these problems because they require multilateral solutions.

Even long-established free trade agreements are not immune to serious distortions resulting from the big vs. little game.  Take, for example, the long running dispute over US Country of Origin Labelling (COOL) Rules.  While it is difficult to argue against the desirability or legitimacy of providing consumer information (in this case, labelling) – this is not an unfettered right, particularly not when the workings of the US system under dispute are seen to adversely skew the market in favour of using domestic livestock at the expense of imported livestock.  Canada and Mexico have experienced considerable disruption and damage to their exports of live swine and beef cattle due to the US measures.  The dispute has been dragging on since 2009.  The aggregate damage to Canadian beef cattle and hog producers already exceeds $2.5 billion.

Read more at: http://www.nationalnewswatch.com/2014/12/12/outing-the-global-agricultural-trade-cheats/#.VleAPXarSUk

Trans-Pacific Partnership — state of play

hief negotiators representing the nations working on the stalled Trans-Pacific Partnership trade deal have resumed their efforts in Washington this week to generate something like real momentum in the talks.

At any rate, we should see some kind of progress in Washington this week. A few more routine boilerplate chapters may be closed, or essentially closed. But don’t expect major breakthroughs; Japan’s December 14 election makes them basically impossible.

Here are the sticking points — the issues on which agreement continues to elude negotiators:

  • Market access for agriculture
  • The environment
  • State-owned enterprises
  • Intellectual property (pharmaceuticals)
  • The automotive trade
  • Labour issues

Read more at:  http://ipolitics.ca/2014/12/11/trans-pacific-partnership-state-of-play/

The Canada-EU trade deal is headed for choppy waters

A leaked partial text of the Canada-EU Comprehensive Economic and Trade Agreement (CETA) is causing an awful lot of fuss — as much for what’s not in it (as leaked) as for what is. But trade agreements are all about the details — and there simply aren’t enough details in this leak to make an assessment.

Why did the leak originate in Germany? Why not? Clearly, Germany does not favour investor-state dispute settlement, which operates independent of a nation’s court system. That hostility drove the leak. A desire for full and open public debate made early public disclosure of relevant parts of the text inevitable.

The deal is not really done until it is approved by the EU Council. And the text which will be approved eventually likely won’t be the same as what has been leaked. There will be fewer blank pages, for starters; the leaked document is full of holes and is missing the all-important annexes.

Read more at: http://ipolitics.ca/2014/08/14/the-canada-eu-trade-deal-is-headed-for-choppy-waters/

Germany’s Objections to Investor Protection in CETA and TTIP

Reports from Berlin over the weekend indicated that Germany cannot accept the Investor-State Dispute Settlement (ISDS) provisions in the Canada-E.U. Comprehensive Economic and Trade Agreement (CETA), nor in the U.S.-E.U. Transatlantic Trade and Investment Partnership (TTIP).

The report which created the fuss does seem to be premature as the negotiations have not been completed; there is no final text.  How does a Trade and Investment Partnership work without Investor Protection?  The initial report was at least premature.  See here.

German officials claim to be “stunned” by the press report.  See here.  But the same article confirms Germany’s position that NAFTA-type ISDS among countries with sound legal systems is superfluous.

How serious is the problem?  Will it become an impasse?  This is not the first time Germany has publicly explained its position on ISDS.  See here and here.  But the 11th hour timing is quite troublesome and E.U. officials are reluctant to change what has been agreed.

The implications of rejecting ISDS are drastic and could lead to unravelling.  See my iPolitics.ca column here.

Germany has said it wants nothing to do with independent arbitral tribunals in either TTIP or CETA passing judgement on German laws.  Both CETA and TTIP are negotiations among equals with well developed legal systems.  Germany considers its courts are good enough.

Negotiations among so many different parties are bound to be difficult – and when so many of the parties are sovereign states, one understands the difficulties involved in herding cats.

The problems will not be over with the initialing of the final text.  The ratification process by all 28 E.U. member states will be a new ball game.

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Germany throws down gauntlet in CETA investor-state negotiations

The final definitive Canada-EU Comprehensive Economic and Trade Agreement (CETA), eagerly awaited since the Agreement in Principle was signed nine months ago, appears to have hit a rough patch.

News from Berlin suggest that Germany will not accept the Investor-State Dispute Settlement (ISDS) provisions in CETA as they currently stand. Nor would such provisions be accepted in negotiations of the Trans-Atlantic Trade and Investment Partnership (TTIP) between the EU and USA.

Anti-corporate activists around the world are declaring victory, though perhaps a bit prematurely. Neither CETA nor TTIP are damaged beyond repair. But German concerns and demands cannot be ignored.

Why has this crisis emerged now? In fact, this is not a new position for Germany. It has made quite clear on several occasions it did not support the inclusion of Investor-State Dispute Settlement in the TTIP.

Read more at: http://ipolitics.ca/2014/07/27/germany-throws-down-gauntlet-in-ceta-investor-state-negotiations/

Canada and EU may have to return to bargaining table, experts suggest

“The message is that Germany … is not going to submit itself to NAFTA Type Chapter 11 investor state arbitration,” trade consultant Peter Clark said.

“In their view there is nothing wrong with German courts and foreigners should not have different rights than Germans.”

Read more at: http://www.theglobeandmail.com/news/politics/canada-and-eu-may-have-to-return-to-bargaining-table-experts-suggest/article19797114/

TPP: Trouble in paradise

Gordon Campbell of Scoop NZ and the Werewolf reviews the hurdles ahead of the Obama administration in getting TPA and passing the TPP. See his column here

Clearly, this will be no slam dunk. 

Obama cannot end run Congress with an executive order on the TPP. More about this in my next iPolitics.ca column. 

There have been suggestions that if Obama spent as much time trying to obtain Congressional support as he does jawboning other TPP leaders, he might be able to sell his trade agenda.

Perhaps, but it appears he has other fish to fry.

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TPP: Ottawa Round Simply Underwhelming

Rumours about results of the Ottawa Round justify the low expectations. 

That there will likely be another Chief Negotiators meeting (in September) and a Ministers meeting (in October) should have been blindingly obvious.

These are essentially next steps to the November Leaders meeting somewhere in Asia now that it has been recognized (or has it) that China was not the best place to declare as yet undefined victory. 

Too much spin. Too many photo ops. Too little substance. No political will. 

Move over Doha and FTAA – TPP is challenging for least credible trade initiative. 

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TPP: Japan is the key

If the TPP negotiation was a high school prom, Japan’s dance card would be full.

Without Japan, the TPP is a hollow shell, lacking critical mass.

Some in Japan claim that the U.S. needs and wants the TPP more than Japan does. This ignores the military defence sharing aspects of Obama’s Pivot to Asia. But Japanese negotiators know how to use leverage – and will.

My latest iPolitics.ca column here, addresses the state of play going into the Ottawa Round and identifies potential problems.

Back to the negotiating venue. More to come.

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