[CTC] EU trade chief says free trade agreement with US should be wrapped up by October next year

[Arthur Stamoulis]

CQ NEWS - POLICY
April 15, 2013 - 6:17 p.m.

White House Warned Against Adding Japan to Trans-Pacific Trade Pact

By Kate Ackley, CQ Roll Call

When the Obama administration welcomed Japan into the Trans-Pacific
Partnership last week, it also invited an increased level of opposition
to the trade pact and may have thrown up new barriers to congressional
renewal of fast-track negotiating authority.

Big domestic economic sectors including automakers, insurers and
agriculture interests have spoken out against the deal, joining typical
trade pact opponents such as liberal groups, unions and some other
domestic manufacturers.

The auto industry, which previously supported a Trans-Pacific
Partnership agreement, immediately attacked Japan's inclusion. A top
industry lobbyist said Monday there may be little hope of winning back
its support if Japan formally signs on.

The agreement's other 10 members would also need to agree in order for
Japan to join the pact.

"Adding a complicated trading partner to the negotiations will certainly
delay TPP's conclusion and may keep it from ever coming to fruition,"
said Matt Blunt, president of the American Automotive Policy Council,
which represents Ford Motor Co. and other U.S. car makers.

The United Auto Workers union also lodged strong opposition to Japan's
bid to join.

Blunt said Japan's is the most closed automobile market in the world and
called the country a "well known currency manipulator." He said adding
Japan could puts congressional approval of TPP in question.

House Ways and Means Chairman Dave Camp <http://www.cq.com/person/243> ,
a Republican from the auto hub of Michigan, expressed his concerns April
12 when acting U.S. Trade Representative Demetrios Marantis announced
that the United States had concluded bilateral talks with Japan and had
given its blessing to adding the nation to the ongoing 11-country deal.
Rep. Sander M. Levin <http://www.cq.com/person/251> , another
Michigander and the top Democrat on Ways and Means, has registered his
problems with the pact.

In a conference call April 12, Marantis and Michael Froman, Obama's
deputy national security adviser for international economic affairs,
said they were sensitive to the concerns of U.S. industries and would
continue to work out the details with Japan as part of TPP negotiations
and separately. "Having Japan in TPP and contributing to the high
standards of TPP is good for the U.S., it's good for the Trans-Pacific
Partnership as a whole, and it's very good for the multilateral trading
system itself," Froman said.

But several sources said that adding Japan to the TPP deal could
increase opposition, particularly among Democrats, to renewal of the
president's fast-track, or trade-promotion authority that allows
implementing legislation for trade agreements to go to Congress for
up-or-down votes without amendments.

"It means much more complicated politics about trade authority," said
Lori Wallach, director of Public Citizen's Global Trade Watch and a
vocal critic of free-trade deals.

Mike Dolan, a trade lobbyist with the International Brotherhood of
Teamsters, said that with Japan in TPP, Congress needs to scrutinize
every line of the agreement before signing off on fast-track. "It makes
the case for not giving fast-track to the administration more
compelling," he said.

William Frymoyer, a former aide to ex-Rep. Richard A. Gephardt and a
trade policy specialist at the firm Stewart & Stewart, said that having
Japan on the TPP deal gives the administration a stronger argument that
the pact would be a major geo-political move in Asia and makes it a much
bigger deal economically - offering a counterbalance to China.

But, he said, it will not be an easy sell on Capitol Hill, with the
steel industry, auto industry and labor among the opponents. "Japan
joining this makes it impossible for a deal by the end of the year,"
Frymoyer, said.

The administration has previously said it is aiming to wrap up the deal
this fall.

 

 

Michael F. Dolan, J.D.

Legislative Representative

International Brotherhood of Teamsters

Desk  202.624.6891

Fax    202.624.8973

Cell    202.437.2254

 

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