Tim Groser & TPP

Fran O’Sullivan’s Opinion

Regardless the outcome from the TPP, it has secured a $2.7B a year for New Zealand. The trades and deals that have been under negotiations for the past several months have granted somewhat of an access to NZ dairy producers to the major consumers markets such as Japan, US and Mexico. This achievement has been accomplished by Tim Groser, current NZ politician and former diplomat. But not everything that shines is gold, as the deal did not reach the expected impact. However, it’s still a decent income. Mr Groser expects to see better outcomes in the near future as tariffs from particular products in the dairy market are eliminated.

Original article: http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11524262

TPP Trade Deal: Who Stands to Gain, Suffer in Asia-Pacific

According to the article, (http://www.bloomberg.com/news/articles/2015-10-06/tpp-trade-deal-who-stands-to-benefit-suffer-in-asia-pacific), the TPP deal sealed Monday in Atlanta will bring various gains and losses to the countries involved, as follows:

  • Japan: Japanese car and auto-parts makers may be the biggest winners, as they gain cheaper access to the US, the industry’s largest export market. During negotiations, Japan was forced to reduce some of the protections granted to its rice farmers, creating a non-tariff import quota of 1% total consumption, while livestock farmers may be hit harder, as tariffs on beef will be cut from 38.5% to 9%.
  • Australia: The TPP deal will remove approximately $9 billion of import taxes from Australian trade, and they will gain access to the US sugar market. Additionally, the cut in the beef tariff will help Australian ranchers, and seafood and most horticulture products will see tariffs dropped as well. Furthermore, Australia and New Zealand successfully pressured the US to compromise on the amount of time that pharmaceutical companies will get to monopolize new biotech drugs, which could lead to cheaper drug prices and more competition.
  • New Zealand: Tariffs are due to be eliminated on 93% of New Zealand’s trade with its TPP partners, representing annual savings of approximately $259 million New Zealand dollars, with the Dairy industry seeing savings of approximately $102 million New Zealand dollars per year. Additionally, tariffs on beef exports will be completely eliminated, with the exception of Japan, where they will drop from 38.5% to 9%.
  • Vietnam: Vietnam will be among the biggest winners, with GDP being boosted approximately 11% and exports growing 28% in the next ten years. Reduced imports in the US and Japan will benefit the country’s apparel manufacturers and the fishing industry will benefit from elimination of import tax on shrimp, squid, and tuna. Eliminating import taxes on pharmaceutical products, however, will lead to tougher competition between domestic Vietnamese companies and foreign companies. The TPP will also increase patent protection, restricting Vietnamese companies’ access to new products as well as inhibit their ability to produce new drugs.
  • Malaysia: State-owned enterprises in Malaysia may suffer from the TPP deal, which calls for equal access to government procurement, however electronics, chemical products, palm oil, and rubber exporters are among beneficiaries.
  • China: Since China failed to join the TPP, they are likely to be among the biggest losers, and are now indicating some interest in joining the TPP in the future. In the meantime, Chinese exporters may lose some market share in the US, Japan, and Vietnam. To combat these losses, China will try to reach more free-trade deals with other countries, especially in Asia.

Canada, Mexico ‎drawn into deal-breaking auto talks in Trans-Pacific negotiations

Steven Chase – The Globe and Mail

Aside from the dairy market issues that Canada is facing with the current talks about the proposed TPP, it is now linked to Mexico in reaching an agreement with the 12 countries involved in regard to how many automotive parts can be manufactured within the TPP countries. Canada is currently the ninth largest vehicle manufacturer, and this particular sector represents a large portion of their economy. Therefore, they are working together to ensure their interests in the United States market as they have always had. A particular point of this article is that Canada and Mexico were excluded from these talks with Japan even though they are part of the NAFTA partners with the U.S. This was a Situation that surprised Japanese representatives.

Full article: http://www.theglobeandmail.com/news/politics/us-excludes-canada-mexico-from-tpp-auto-negotiations/article25842330/

TPP – An Opportunity for Texas

The case study at the following link (http://tradebenefitsamerica.org/sites/default/files/studies/BRT_TPP_TX.pdf) talks about the impact of TPP and the potential benefits for Texas with the Trans-Pacific Partnership.

Texas has important trade and investment ties with TPP countries. In 2011, trade-exports and imports of goods and services with TPP countries supported an estimated 1,160,100 jobs in the state. The TPP will help build on these trade and investment relationships and support the Texas jobs that depend on them.

Texas’s goods exports in 2013 totaled $279.7 billion.  Texas exported $141 billion annually in goods to all TPP markets. Texas’s goods exports to all TPP markets increased by 15 percent from 2011 to 2013. During this period, 53 percent of Texas’s total goods exports went to the TPP region.  The top three product categories exported to TPP-member economies in 2013 were computer and electronic products, petroleum and coal products, and chemical manufactures.

A total of 40,737 companies exported goods from Texas locations in 2012.  Of those, 37,921 (93.1 percent) were small- and medium-sized enterprises with fewer than 500 employees.

Small- and medium-sized firms generated nearly one-third or 30.6 percent of Texas’s total exports of merchandise in 2012.  Small- and medium-sized firms benefit from the tariff-elimination provisions of free trade agreements, as well as many of the other commitments in the agreement.  Trade facilitation, for example, is vital to small- and medium-sized firms, as is enforcement of their intellectual property rights, streamlining of regulatory issues, and other commitments.

Jobs supported by Texas’s goods exports were about 786,000 in 2011 according to the U.S. Department of Commerce data.  In 2011, over one-quarter (26.1 percent) of all manufacturing workers in Texas depended on exports for their jobs.

The TPP will also help Texas companies buy the inputs they need to produce competitive products. The TPP will help strengthen investment ties between Texas and all 11 TPP countries. By removing barriers and strengthening partnerships, the TPP will encourage companies based in TPP countries to increase their business investment in Texas, supporting economic growth and jobs throughout the state.

Pacific Trade Ministers Aim to Seal TPP Trade Pact

According to the article (http://news.yahoo.com/pacific-trade-ministers-aim-seal-tpp-trade-pact-050700679–finance.html), top trade representatives of 12 Pacific Rim countries are hoping to finalize the TPP agreement this week following the failed negotiations that occurred in Hawaii earlier this year.

A handful of issues hindered the talks in Hawaii, including US treatment of Japanese auto-parts, the length of patent protections for biologic drugs, and open markets for dairy products from major producers.

While prospects look good that the deal could be sealed this week, nothing is certain. Vocal public groups are raising objection to several issues under discussion, and there have been multiple demonstrations protesting the TPP in both Canada and New Zealand.

Nonetheless, if a deal is struck, it could become a model for an even larger agreement, the Transatlantic Trade and Investment Partnership (TTIP) that Washington is negotiating with the European Union.

Thailand’s Bid for the TPP – Time for Trade, or Trade for Time?

According to the article (http://www.huffingtonpost.ca/2015/09/28/ontario-quebec-agriculture-ministers-to-shadow-feds-during-key-tpp-talks_n_8210684.html), the Thai government, under Yingluck Shinawatra, announced an interest in joining the TPP in 2012, however the interest was lost under their current military dictatorship. However, Thailand’s Deputy Prime Minister, Somkid Jatusripitak, has recently indicated that they are now interested in joining the TPP.

Although Thailand claims that by joining the TPP their membership would help put the Kingdom back on the trade bloc’s radar, this could be a ploy to wind its way into the good graces of its neighbors as well as the United States.

Two key events have contributed toward Thailand’s newfound embrace of the TPP: the July release of the US State Department Trafficking in Persons Report and the deadly Erawan shrine bombings. Both of these events not only forced Thailand’s human rights situation into the open, but made it front page news as well. Therefore, the timing of Thailand’s sudden interest in joining the TPP is convenient and somewhat suspicious. Serious questions are now being raised regarding whether Thailand’s alleged commitment to democratic reforms is legitimate, or if it is merely a way to get back into the world’s good graces.

Protests in New Zealand

According to article (https://www.wsws.org/en/articles/2015/03/12/tppa-m12.html) on World Socialist Web Site, the United States doesn’t plan to abide by the TPP truthfully.  Back in March, thousands of New Zealand citizens protested the country’s TPP agreement with the United States.  While the agreement is aimed at boosting economies and redefining “the model for trade,”  many New Zealanders are seeing this as Wall Street’s (United States) subversive attempt to control New Zealand’s economy and essentially promote global capitalism.  There’s much truth to the citizens theory, but all five of the protests in New Zealand this year have been orchestrated by socialists. These individuals are very “one-sided” when it come to these type of issues, yet it’s completely understandable.  I would be greatly concerned for my nations economy/future if I sense any indication of a takeover from a “super-power” nation.  Feel free to select the link to decide who’s being honest.