EYES OPENED DURING INDIA VISIT

Remove

Executive Director Stephen Jacobi read out on the recent Delhi business mission, published earlier by Newsroom.

read more

Thank you Mr President – but no one country makes trade rules

by | Jan 22, 2015 | Uncategorized

Remove

In his 2015 State of the Union address President Obama has at last thrown the weight of his office behind the trade agenda in asking Congress to grant him Trade Promotion Authority (TPA).  This is seen as an essential pre-condition to the conclusion of TPP, but it is not sufficient in itself.   In his speech the President suggested that America rather than China should write the trade rules.  He can perhaps be forgiven in the US political environment for overlooking the fact that neither America nor China on their own can write trade rules.  The stand-off in the WTO Doha Development Agenda is clear evidence of that!  Rather trade rules need to be written collectively in the course of a negotiation.  If this sort of argument helps folks in the US to pick up the pen and join the writing effort then great.  US negotiators, and everyone else, need the assurance that Congress in the ratification process won’t unpick what has been agreed – that’s a consequence of the shared responsibility for trade in the US Constitution.  But TPA however useful doesn’t conclude negotiations.  Only negotiators can do that on the basis of a deal which is acceptable to all.

On TPP, the conventional thinking is that if TPA can be secured, this will strengthen the hand of the US in convincing Japan to show greater flexibility in agriculture, which would boost its productivity in other areas.  Other participants would then be able to be drawn in, knowing that the US and Japan are prepared to deal on market access.  That leaves finishing (but important) touches to other controversial areas including intellectual property, investment, state owned enterprises and environment.

With strong leadership from the White House, this scenario is not impossible, but the reaction of the US Congress is hard to predict.   TPP has a growing number of detractors, not the least amongst Congressional Democrats, and business is becoming weary of the time that has been taken.  Towards the middle of 2015 the early jockeying for the 2016 US Presidential election will get underway. The political environment could well change once again for TPP.

This post was written by Stephen Jacobi, Executive Director, NZ International Business Forum

 

REGISTER WITH TRADE WORKS

Register to stay up to date with latest news, as well as saving and discussing articles you’re interested in.

 

Remove

 

Latest News

EYES OPENED DURING INDIA VISIT

Published by Newsroom on 6 September 2023 Stephen Jacobi reports on the recent business delegation to India. Every country has its contrasts and a subcontinent of 1.4 billion with thousands of years of history has more than most.  Today’s India can reach the...

Large business delegation bound for India

MEDIA RELEASE - Tuesday 22 August, 2023 Fifty business representatives will leave later this week bound for Delhi, making it one of the largest delegations ever to head for India. The delegation, comprising members and senior leaders of five business organisations,...

India and New Zealand: The next innings

As published in the NZ Herald, 18 August 2023 By Stephen Jacobi As a trade mission prepares to depart for Delhi, Stephen Jacobi of the New Zealand International Business Forum considers the prospects for growing two-way trade and investment between India and New...

CRUNCH TIME FOR CPTPP

As published in the NZ Herald, 18 August 2023. By Stephen Jacobi, Executive Director, NZ International Business Forum. Following the Ministers’ meeting in Auckland, what is the outlook for CPTPP as the world’s most ambitious free trade agreement? When Ministers...

CER CELEBRATES A RUBY ANNIVERSARY

The Australia-New Zealand Leadership, the semi-annual gathering of Ministers and business leaders, has been described as a “successful symbol of trans-Tasman togetherness[1]”.  And the togetherness vibe was certainly present when the Forum gathered in Wellington...

CRUNCH TIME FOR CPTPP

This post was published by Hinrich Foundation on 18 July 2023. Following the Ministers’ meeting in Auckland, what is the outlook for CPTPP as the world’s most ambitious free trade agreement ? By Stephen Jacobi When APEC Trade Ministers gathered for their annual...