China is trying to outmaneuver the United States in the Asian market, President Obama said, in pressing for approval of the Trans-Pacific Partnership trade pact. “This past week, China and 15 other nations met in Australia with a goal of getting their deal, the Regional Comprehensive Economic Partnership, done before the end of the year,” Obama wrote in an op-ed in the Washington Post. To assure fair treatment of its exports, the United States needs to approve TPP, which covers 40 percent of the world economy, said the president.
For U.S. agriculture, the big prize is larger access to Japan’s food market, thanks to fewer trade barriers and lower tariffs. Farm and agribusiness groups are pushing for a vote on TPP this year, despite the sinking popularity of trade agreements, rather than wait for the new administration. The leading candidates for the Republican and Democratic nominations for president are critical of TPP. In the op-ed, Obama mentioned agriculture in listing the adverse effects of forgoing TPP, saying “more of our farmers’ and ranchers’ products would run into barriers abroad.”
“I understand the skepticism people have about trade agreements, particularly in communities where the effects of automation and globalization have hit workers and families the hardest,” wrote Obama. TPP will allow the United States to take the lead in setting trade rules, he said. “That’s why my administration is working closely with leaders in Congress to secure bipartisan approval for our trade agreement, mindful that the longer we wait, the harder it will be to pass the TPP.”
Senate Majority Leader Mitch McConnell said in an Agri-Pulse interview that “the political environment is very tough” for trade legislation. “I think the chance of getting an outcome in the middle of a year like this is pretty slim.” If there is no action, “it’s still there for the next president to look at, to modify,” said McConnell, who noted that TPP did not treat tobacco or pharmaceuticals to his satisfaction.
If there is a TPP vote, the most likely time would be the post-election session, according to lawmakers and trade negotiators.
TPP cannot take effect if the United States or Japan reject it. The two-year deadline for ratification began running in early February, with approval needed from at least six countries with a combined 85 percent of the GDP of the 12 nations that negotiated the agreement.