TPP doable this year: New Zealand ambassador

{mosads}“We believe [USTR] Michael Froman wants to do big stuff … it’s the biggest trade deal since [the WTO] Uruguay [round].”

Moore said to get a deal, the U.S. must not try to carve out exemptions for problem areas like sugar. Australia is keen to get quota-free access to the U.S. sugar market that it did not achieve its separate bilateral deal with the U.S.

He also said Vietnam has made clear that textile access, without burdensome “yarn forward” rules that selectively apply lower tariffs for garments based on the origin of fabric, is a must-get. 

Keeping off “fundamentally” important products like sugar and textiles could cause each member to protect their most sensitive areas. For Japan, this would be rice and for Canada this could be dairy and poultry, Moore warned. 

“What could go wrong? If we cannot face some problems we have no been able to face in the past,” he said. 

Other problem areas for the U.S. involve footwear, catfish imports and dairy.

New Zealand is keen to get expanded access to the U.S. dairy market, and Moore argued that the U.S. dairy industry is more globally competitive now so a deal can be struck more easily. He argued that new dairy access to Canada would motivate the U.S. to keep dairy on the table. 

Pressed on whether the U.S. is showing a sign to put politically sensitive products on the negotiating table, Moore said he had some evidence.

“Yes I do, but I can’t share it,” he said. “We can see movement.”

The ambassador said a big question remained over whether Japanese Prime Minister Shinzo Abe can rally support for an agreement that ends enormously high tariffs on rice and other agricultural products. 

“What gives me confidence in Japan is the amount of internal work going on,” he said. Moore expressed concerns that Canada may be lagging in the element in preparing for an end to agricultural supply management and in opening up government procurement. 

He said that agreements governing the cross-border movement of data and on regulatory convergence could provide enough win-win scenarios to paper over the political pain of ending tariff protections for sensitive industries.