The US International Trade Commission (USITC) is seeking input for a newly
initiated investigation into the probable economic effect of America's involvement
in the Trans-Pacific Partnership (TPP), a free trade agreement with seven countries.
The TPP is a potential platform for economic integration
across the Asia- Pacific region, and US Trade Representative Ron Kirk
has requested that the USITC investigate the potential benefits and drawbacks
of the agreement on US producers, exporters and importers.
A free trade agreement between the US and TPP members would result in the elimination
of most tariffs on goods traded between the US, Australia, Brunei Darussalam,
Chile, New Zealand, Peru, Singapore, and Vietnam. The US Trade Representative Office (USTR) indicated that advice
from the USITC will assist the USTR in its consultations with Congress
and its preparations for negotiations.
The USITC aims to advise President Obama as to the probable economic effect
of providing duty-free treatment for imports of products of the TPP members
on industries in the United States.
In addition, as requested by the USTR, the USITC will advise the President
as to the probable economic effects of eliminating tariffs on imports of certain
agricultural products of the TPP members on US ranchers and farmers.
The USITC expects to submit its report, which will be confidential, to the
USTR by June 2, 2010.
The original TPP agreement was signed by New Zealand, Chile and Singapore on
July 18, 2005, and by Brunei on August 2, 2005. On September 22, 2008, comprehensive
negotiations for the US to join the TPP were announced. Australia, Peru and
Vietnam also intended to participate in the negotiations.
The first round of negotiations was scheduled to take place in March 2009,
but was postponed to allow the US administration time to conduct a general review
of US trade policy.
On November 14, 2009, President Obama confirmed that the United States would
participate in the broader TPP including all seven aforementioned countries.
Asia-Pacific countries have negotiated bilateral trade agreements and regional
agreements, including ASEAN+3 (Singapore, Malaysia, Indonesia, Thailand, Philippines,
Vietnam, Brunei, Cambodia, Laos and Burma, plus China, Japan and Korea) and
ASEAN+6 (ASEAN plus China, Japan, Korea, India, Australia, and New Zealand).
There are said to be 175 preferential trade agreements in force that include
Asia-Pacific countries, with another 20 awaiting implementation and more than
50 others under negotiation.
The USITC will hold a public hearing in connection with the investigation on
March 2, 2010, and the Commission is calling for requests to appear at the hearing
by February 16, 2010. The consultation period for written submissions closes
on March 23, 2010.
LAWANDTAX-NEWS.COM
