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Australia walks away from Trans-Pacific Partnership trade deal talks Australia walks away from Trans-Pacific Partnership trade deal talks
(about 4 hours later)
Australia will not sign up to the Trans-Pacific Partnership (TPP) trade deal in the current round of talks.A spokesman for trade minister, Andrew Robb, confirmed that a conclusion will not be reached on the $200bn deal during the latest round of negotiations in Hawaii.“Australia had made some excellent progress but unfortunately some difficult issues were not resolved,” he said on Saturday. The world’s biggest regional trade deal – Trans-Pacific Partnership (TPP) – is still within reach despite Australia walking away empty-handed from the latest talks, the federal government says.
Andrew Robb has laid the blame for the failure to come to an agreement with the “big four” economies of the US, Canada, Japan and Mexico. “The sad thing is, 98% is concluded,” he said. “I don’t know how sticky it is.” The trade minister, Andrew Robb, confirmed that a conclusion was not be reached on the $200bn deal during the latest round of negotiations in Hawaii.
A dispute between Japan and North America over the car trade, New Zealand digging in over dairy products and no agreement on monopoly periods for next-generation drugs had contributed to the deadlock, sources told Reuters. “Australia had made some excellent progress but unfortunately some difficult issues were not resolved,” he said on Saturday.
Robb has laid the blame for the failure to come to an agreement with the “big four” economies of the US, Canada, Japan and Mexico. “The sad thing is, 98% is concluded,” he said.
“While we didn’t quite get there, we are definitely on the cusp.”
Concerns around automotives, data protection of biologics, dairy and sugar remain sticking points, but they are not impossible to resolve, Robb said.
“From my reading, the issues are not intractable and there remains a real determination to conclude the TPP among all parties.”
Farmers were disappointed by the outcome but said it was important to get a good deal. National Farmers Federation deputy chief Tony Mahar told Sky News: “We really hope that we can get a successful agreement for farmers within the next few months.”
Robb faces a tussle at home over the deal, with Nationals MPs demanding a decent deal for sugar farmers. Half a dozen federal Nationals indicated they would cross the floor when the agreement comes before the parliament if only a token result is achieved.
The US allows sugar imports based on a quota system, with Australian cane farmers now allowed to send about 100,000 tonnes there a year. The farmers would like to raise this to more than 500,000 tonnes but the Americans are holding out.
The agreement involves 12 nations including the US, New Zealand, Japan and Canada, and covers about 40% of the global economy. Talks are expected to resume in November.
Related: TPP trade deal: Abbott chastises critics for 'short-term, xenophobic politics'Related: TPP trade deal: Abbott chastises critics for 'short-term, xenophobic politics'
Trade ministers from the 12 nations negotiating the TPP, which would stretch from Japan to Chile and cover 40% of the world economy, delayed until 4pm local time a news conference that was originally scheduled for 1:30pm on the Hawaiian island of Maui.
Three sources involved in the talks said a last-minute breakthrough was unlikely due to issues with dairy and auto trade and a stand-off over biologic drugs, which are made from living cells.
“It would be very difficult to arrive at a deal,” one of the officials said, requesting anonymity because discussions were ongoing.
Related: Barack Obama given 'fast-track' authority over trade deal negotiations
Failure to seal the agreement will be a setback for the US president, Barack Obama, given the trade pact’s stance as the economic arm of the administration’s pivot to Asia and an opportunity to balance out China’s influence in the region.Failure to seal the agreement will be a setback for the US president, Barack Obama, given the trade pact’s stance as the economic arm of the administration’s pivot to Asia and an opportunity to balance out China’s influence in the region.
The talks, which drew about 650 negotiators, 150 journalists and hundreds of stakeholders to the Hawaiian island of Maui, had been billed as the last chance to get a deal in time to pass the US Congress this year, before 2016 presidential elections muddy the waters.The talks, which drew about 650 negotiators, 150 journalists and hundreds of stakeholders to the Hawaiian island of Maui, had been billed as the last chance to get a deal in time to pass the US Congress this year, before 2016 presidential elections muddy the waters.
The deal seeks to meld bilateral questions of market access for exports with one-size-fits-all standards on issues ranging from workers’ rights to environmental protection and dispute settlement between governments and foreign investors. Negotiators from the 12 TPP members had worked through the night and officials said great strides were made in many contentious areas.The deal seeks to meld bilateral questions of market access for exports with one-size-fits-all standards on issues ranging from workers’ rights to environmental protection and dispute settlement between governments and foreign investors. Negotiators from the 12 TPP members had worked through the night and officials said great strides were made in many contentious areas.
But issues pegged as sticking points going into the talks were still blocking a deal after four days of discussions.But issues pegged as sticking points going into the talks were still blocking a deal after four days of discussions.
Related: Trans-Pacific Partnership deal is close, Andrew Robb says, but obstacles remainRelated: Trans-Pacific Partnership deal is close, Andrew Robb says, but obstacles remain
New Zealand has said it will not back a deal that does not significantly open dairy markets, with an eye to the US, Japan and Canada, as well as Mexico.New Zealand has said it will not back a deal that does not significantly open dairy markets, with an eye to the US, Japan and Canada, as well as Mexico.
John Wilson, chairman of the world’s largest dairy exporter, New Zealand dairy cooperative Fonterra, arrived to attend the talks late on Thursday to press home the case.John Wilson, chairman of the world’s largest dairy exporter, New Zealand dairy cooperative Fonterra, arrived to attend the talks late on Thursday to press home the case.
Ministers had also yet to agree on how long to protect data used to develop biologic pharmaceuticals. US drug companies want 12 years, but Australia wants five. People briefed on the talks had seen seven or eight years as a possible compromise.Ministers had also yet to agree on how long to protect data used to develop biologic pharmaceuticals. US drug companies want 12 years, but Australia wants five. People briefed on the talks had seen seven or eight years as a possible compromise.
Ministers will likely head home from Maui with no set date for their next meeting. Japan and the United States had been trying to agree on the rules of origin for cars, which determine when a product is designated as coming from within the free trade zone and therefore not subject to duties. Japan and the United States had been trying to agree on the rules of origin for cars, which determine when a product is designated as coming from within the free trade zone and therefore not subject to duties.
The US and Japan had largely agreed on the rules, but had to get buy-in from Canada and Mexico, which are closely tied in to the U.S. auto industry. The US and Japan had largely agreed on the rules, but had to get buy-in from Canada and Mexico, which are closely tied in to the US auto industry.
Japanese automakers source many car parts from Thailand, which is not a member of the TPP, and strict rules would upset existing supply chains. Japan also wants the US to quickly drop duties on Japanese auto parts going there.Japanese automakers source many car parts from Thailand, which is not a member of the TPP, and strict rules would upset existing supply chains. Japan also wants the US to quickly drop duties on Japanese auto parts going there.