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 If ratified, the Trans-Pacific Partnership (TPP) will be a
legacy-defining achievement for U.S. President Barack Obama and his
administration's pivot to Asia, aimed at countering China's rising
economic and political influence.
China has responded with its own Regional Comprehensive Economic
Partnership (RCEP), a proposed 16-nation free-trade area including
India that would be the world's biggest such bloc, encompassing 3.4
billion people.
But TPP, which will set common standards on issues ranging from
workers' rights to intellectual property protection in 12 Pacific
nations, was kept largely from public scrutiny, angering
transparency advocates concerned over its broad implications.
It is opposed by labor unions and many of Obama's fellow Democrats,
including presidential candidate Hillary Clinton, who backed the
developing trade pact when she was secretary of state during Obama's
first term.
Some pro-trade Republican lawmakers are also wary of the deal,
heralding a tough fight to get the deal through Congress, although
this is not expected before March. Republican White House contender
Donald Trump has labeled it a "disaster."
The deal does not include measures demanded by some U.S. lawmakers
to punish currency manipulation with trade sanctions or set monopoly
periods for next-generation biologic drugs at 12 years.
Agreement on the pact, which was more than five years in the making,
was trumpeted a month ago after intense talks in Atlanta broke a
deadlock over trade in dairy products, pharmaceuticals and autos.
The fine print will be important. Details on local content
thresholds for the auto industry are sketchy, for example, and U.S.
footwear importers are waiting to see how long duties will stay.
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The TPP would be a boon for factory and export economies like
Malaysia and Vietnam. Anticipated tariff perks are already luring
record foreign investment into Vietnamese manufacturing and both
countries are expected to see increased demand for their key
exports, from palm oil and rubber to electronics, seafood and
textiles.
That could put pressure on several of Asia's major developing
economies, including the Philippines and Indonesia, which have
recently expressed interest in signing up to the pact.. Thailand
said it was studying the deal and may consider joining.
Japan has pledged to ease trade barriers on imported French fries
and butter - products which have been in short supply in the Asian
market - while Malaysia will eliminate tariffs on all imported
alcohol for the first time in a trade agreement.
Other firsts cited by the partners - Australia, Brunei, Canada,
Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the
United States and Vietnam - include the first commitments to
discourage imports of goods produced by forced labor and to adopt
laws on acceptable working conditions, and the first prohibition on
harmful fisheries subsidies.
(Additional reporting by Linda Sieg in Tokyo, Martin Petty in
Vietnam; Editing by Bill Rigby)
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