[CTC] Atlanta ministerial extended to Saturday; close on autos

[Arthur Stamoulis]

http://www.theglobeandmail.com/news/politics/tpp-trade-talks-extended-an-extra-day-as-progress-seen-on-auto-imports/article26631467/?service=mobile

TPP trade talks extended an extra day as progress seen on auto imports

STEVEN CHASE
ATLANTA — THE GLOBE AND MAIL
Last updated Friday, Oct. 02, 2015 11:23AM EDT

Talks in Atlanta to create a massive free trade zone across the Pacific Rim
have been extended an extra day until Saturday as countries make progress
on obstacles such as autos and car imports.

The United States government has pushed back the closing press conference
for these Trans-Pacific Partnership negotiations to October 3.

Sources say a deal has come together on imports of autos and car parts from
Japan and Japanese suppliers – a major sticking point in the negotiations
between 12 countries.

Japanese media reported that Canada, the U.S., Mexico and Japan had in fact
struck a deal on autos but Canadian Trade Minister Ed Fast’s office on
Friday morning vehemently denied this was true.

“Reports of a deal are false. Negotiations are continuing on a range of
issues, including autos and auto parts,” Fast spokesman Max Moncaster said.
“We are making progress towards securing an outcome that protects and
creates jobs in our auto sector and every other sector …. Nonetheless more
work remains.

Mexican Economy Minister Ildefonso Guajardo told reporters late Thursday
that countries are very close on autos but that a final deal is contingent
on other parts of the overall agreement coming together as well.

“We made a lot of progress in the auto issue but still we are pending in a
couple of areas where we need to close, Mr. Guajardo said Thursday.

Sources say countries are close to agreeing on a deal though the details
are still being hammered out. As envisioned now it would fix the domestic
content requirement for vehicles sold without tariffs at 45 per cent and
this threshold would be 35 per cent for auto parts but 45 per cent for more
sophisticated, higher value parts. An agreement to remove tariffs on 80 per
cent of Japanese auto and car imports would be part of a deal.

Countries are still in the thick of negotiation over opening dairy markets
to more foreign imports in countries such as Canada and the U.S.

Agriculture ministers from four Canadian provinces showed up in Atlanta
Thursday to stage a defence of Canada’s dairy industry at TPP talks,
warning the federal government against granting foreign milk producers any
new access to this country’s market.

The provincial farm ministers from Ontario, Quebec, Nova Scotia and New
Brunswick said that it was only bad travel logistics that prevented their
Manitoba and Prince Edward Island counterparts from joining them to serve
this notice at what might be the final round of Trans-Pacific Partnership
trade negotiations.

This Thursday show of provincial unity, and the particularly forceful
message delivered publicly outside the meeting of TPP trade ministers,
offers a preview of the political backlash the Conservative government
could face should it open Canada’s dairy market to more imports under a
Trans-Pacific deal.

After five years of negotiations, the 12-country TPP talks are down to the
wire with Japan and the U.S. leading the charge to clinch a wide-ranging
deal after several false starts.

There’s clear evidence that Western Canada would benefit from a TPP because
many of the industries with a big footprint are expected to see gains.
Beef, barley, pork and canola producers, among others, expect to gain fresh
access to Pacific Rim markets, such as traditionally-protectionist Japan.

It could be a bit tougher sell for the TPP in Central Canada, where the
auto parts sector would face a flood of new competition from Asian rivals
and where the bulk of this country’s 12,500 dairy farms are located.

Follow Steven Chase on Twitter:@stevenchase

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826
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