The document discusses the Trans-Pacific Partnership (TPP) agreement, including its objectives, evolution, and implications for Mexico. The TPP aims to create an integrated economic platform in the Asia-Pacific region and foster growth. It brings together countries willing to commit to high standards of liberalization, including on new issues like labor, environment, and intellectual property. Mexico faces challenges in the TPP negotiations from issues with certain countries' agriculture and textiles sectors, but also opportunities to access new export markets and attract investment by remaining competitive. Overall the TPP has the potential to further regional economic integration beyond its current membership.
This discussion on Trans Pacific Partnership. This presentation will look at Trade, Government Policies, comments from media, trade association as well as government leaders.
It involves 12 countries: the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
The pact aims to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.
Member countries are also hoping to foster a closer relationship on economic policies and regulation.
The agreement could create a new single market something like that of the EU.
Pretty big indeed. The 12 countries have a collective population of about 800 million - almost double that of the European Union's single market. The 12-nation would-be bloc is already responsible for 40% of world trade.
The deal is a remarkable achievement given the very different approaches and standards within the member countries, including environmental protection, workers' rights and regulatory coherence - not to mention the special protections that some countries have for certain industries
This discussion on Trans Pacific Partnership. This presentation will look at Trade, Government Policies, comments from media, trade association as well as government leaders.
It involves 12 countries: the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
The pact aims to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.
Member countries are also hoping to foster a closer relationship on economic policies and regulation.
The agreement could create a new single market something like that of the EU.
Pretty big indeed. The 12 countries have a collective population of about 800 million - almost double that of the European Union's single market. The 12-nation would-be bloc is already responsible for 40% of world trade.
The deal is a remarkable achievement given the very different approaches and standards within the member countries, including environmental protection, workers' rights and regulatory coherence - not to mention the special protections that some countries have for certain industries
Agriculture in RTAs: The example of Trans-Pacific Partnership FAO
Ekaterina Krivonos, FAO. Materials of the workshop: Trade Policy, WTO and Development of Agricultural Markets in the Post-Soviet Countries, organized by FAO 5 October, Tbilisi, Georgia http://www.fao.org/economic/est/est-events-new/tpps/en/
India, being the most powerful country regionally and the largest democracy in the world, has a major role in ensuring security and safety in the BOB. In order to gain a deeper appreciation of the region, the emerging situation, and the way ahead, an International Conference on Security and Prosperity in the Bay of Bengal was organized by CPPR with the support of the Friedrich Naumann Foundation (FNF), South Asia. It was held from November 29 to December 1, 2022, in Kochi, Kerala. The presentations and discussions at the Conference were insightful and brought out several valuable suggestions and recommendations for the way ahead. This volume is a compilation of papers presented at the conference.
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Energy Security - Presentation by Mr. Tom Cutler
During the International Conference on Energy Security organized by Centre for Public Policy Research, Cochin, India
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5. The TPP seeks:
Create a platform for a potential economic
integration of the Asia-Pacific region (FTAAP).
Design an inclusive agreement to foster
economic growth and employment.
28/06/2014
5
6. 6
Asia Pacific a priority for the US
President Obama in its speech in November 2009 in Tokyo
As an Asia-Pacific nation, the United States expects to
be involved in the discussions that shape the future of
this region and to participate fully in appropriate
organizations as they are established and evolve.
The risk of being excluded explains the decision of its
participation in the regional integration.
The TPP is a political strategy to increase the presence
of US in the Asia Pacific.
28/06/2014
7. United States lost influence in the region
• End of Cold War
• China’s new
influence
• Emergence of an
exclusive regional
integration in Asia
28/06/2014
7
8. New TPP Members – What about
China?
• Chinese perspective: US effort at containing China’s influence
• US perspective: Creating a rule-based framework in Asia
• Economic modeling suggests China will be hurt by TPP, but not by
very much
• Consensus that China is not ready for TPP-style commitments at
this time; but other, more narrowly focused FTAs under discussion
by China
• China’s strategy on FTAs complicated by numerous territorial
disputes with Asian neighbors, other areas of geopolitical distrust
28/06/2014
8
10. FTA with high standards
1. The P4 opted to follow high standard without
exclusion of any sector (agriculture included).
2. It is still open to new members
3. The TPP gathers countries willing to assume
important commitments for liberalization.
28/06/2014
10
11. What does high standards mean?
• Interest in new topics in the US’ FTA.:
• Labor rights,
• Environmental norms,
• Intellectual property protection
• investment
• New “horizontal topics":
• Regulatory coherence,
• SMEs,
• Competitiveness,
• Development,
• Regional integration,
• Supply chains,
• State enterprises 28/06/2014
11
12. Negotiating groups
1 Market Access - Industrial
2 Market Access - Agriculture
3 Market Access - Textile
4 Rules of Origin
5 Trade Facilitation
6 Sanitary and phytosanitary measures
7 Technical barriers to trade
8 Trade defense
9 Government procurement
10 Intellectual property
11 Competition policy
12 Trade in services
13 Financial services
14 Telecommunications
15 Electronic commerce
16 Mobility of persons
17 Investment
18 Environment
19 Labor
20 Institutional matters and dispute settlement
21 Cooperation
22
23
24
Horizontal topics
State enterprises
SMEs
28/06/2014
12
13. 3. Mexico and the TPP
Challenges and opportunities
28/06/2014
13
14. Mexico in TPP
Initially Mexico refused to be part. Why?
1. PAN governments adopted private sector
protectionist agenda.
2. Difficulties to approve new dispositions with Japan,
Colombia and the FTA with Peru
3. Mixed signals on trade.
What changed? US and Canada participation.
Only requested to become part in the APEC
Honolulu Summit in November 2011 .
28/06/2014
14
15. New opportunity in TPP’s expansion
• Mexico is member of the
negotiations since
October 2012.
• Mexico cannot
renegotiate the
agreements reached in
previous rounds.
• Mexico will have to resolve problems which have prevented
to negotiate other agreements: agriculture (Australia and
New Zealand); textiles, clothes and shoes (Malaysia and
Vietnam); disciplines in state sectors; intellectual property,
and regulatory convergence.
NAFTA
82%
LAM
7%
Europe
5%
Asia
4%
Other
2%
Mexican Exports by region (%, 2011)
28/06/2014
15
16. Mexico: tariff peaks, 2012
HS Product Category
Tariff (ad
valorem %)
0207 Meat an edible offal, of the poultry, chilled or frozen
Agricultural
234
0209
Pig fat, free of lean meat, and poultry fat, not
rendered… 254
0406 Cheese and curd 125
0701 Potatoes, fresh or chilled 245
0901 Coffee, whether or not roasted or decaffeinated… 72
1003 Barley 115.2
1107 Malt, whether or not roasted 158
1516 Animal or vegetable fats and oils 254
1702 Other sugars
210
Glucose and glucose syrup…
Other Fructose and fructose syrup…
1001 Wheat 67
2402
Cigars, cheroots, cigarillos and cigarettes of
tobaco… 67
2403 other manufactured tobacco… 67
61-63
Several made-up textile articles, clothing
accesories and articles of apparel
Textiles and
clothes 20-30
8701-03 Motor vehicles (tariff lines for used vehicles) Used vehicles 35
28/06/2014
16
17. Together the TPP countries imported more than
US $5 trillion in 2013
Source: Own elaboration with information from ITC Trade Map
0
1000
2000
3000
4000
5000
6000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Imports of the TPP countries (US billions)
US Japan Canada Mexico Australia New Zealand
Viet Nam Brunei Peru Chile Malaysia Singapore
28/06/2014
17
18. Mexico’s preferential access to TPP members
Source: own elaboration with information from ITC, Trade Map and WTO
Country
Imports
(2013 US B)
Share in TPP
Preferential
Access
Market size
NFN
applied
Tariff 2012
EE.UU. 2328.32863 45.47% Yes
US $3.741
trillion
(75.24%)
-
Japan 833.166061 16.27% Yes
Canada 461.799509 9.02% Yes -
Chile 79.616353 1.55% Yes -
Peru 37.977041 0.74% Yes -
Australia 232.481271 4.54% No
US$999
Billion
(24.76%)
2.7
Singapore 373.212237 7.29% No 0.2
Malaysia 206.250855 4.03% No 6.5
New
Zealand 39.221545 0.77%
No 2.05
Viet Nam 143.908622 2.81% No 9.48
Brunei D. 3.666165 0.07%
No 2.5 (2011)
Mexico 381.210169 7.44% - -
28/06/2014
18
19. TPP will help diversify Mexico’s exports markets
Country HS Main products exported by Mexico Value US th.
% of total export
flow with the
country
Vietnam
85177011Parts of thelephone sets 7,890 12.3
03037999Other fish, frozen, excluding fish fillets 4,473 7.0
39202099
Other plates, sheets, film, foil and strips of polymers of
propylene
4,464 7.0
Malaysia
85171201Telephones for cellular networks 18,242 14.7
26011201Agglomerated iron ores 11,822 9.5
87032301
Motors cars of a cylinder cap. between 1500-3000 cc
10,476 8.4
Singapore
85171201Telephones for cellular networks 146,900 24.8
85423199Processors and controllers 91,950 15.5
84717001
Storage units for automatic data processing machines
38,571 6.5
Australia
26070001Lead ores and concentrates 214,752 24.0
22030001Beer made from malt 100,491 11.2
84099199
Parts suitable for use with spark-ignition combustion
piston engines
55,048 6.2
New
Zealand
26080001Zinc ores and concentrates 21,201 23.1
22030001Beer made from malt 13,213 14.4
87032101
Other vehicles, with spark-ignition combustion piston
engine
12,138 13.228/06/2014
19
20. … and diversify import sources
Country HS Main products imported by Mexico
Value US
th.
% of total import
flow with the
country
Tariff
%
Vietnam
03042999 Other fish fillets 101,842 10.5 -
64041199 Sport footwear with outer soles 52,077 5.4 30
64029902 Other footwear with outer soles 48,379 5.0 30
Malaysia
85423199 Processors and controllers 1,626,630 29.0 Ex.
84717001
Storage units for automatic data processing
machines
381,110 6.8 Ex.
85423999 Other Electronic integrated circuits 360,919 6.4 16
Singapore
84717001
Storage units for automatic data processing
machines
199,081 16.8 Ex.
85423999 Other Electronic integrated circuits 123,027 10.4 16
85423199 Processors and controllers 87,752 7.4 Ex.
Australia
27011201
Briquettes, ovoids and similar solid fuels
from coal
539,060 54.8 Ex.
76012099 Aluminum alloys 71,457 7.3 16
26070001 Lead ores and concentrates 53,279 5.4 Ex.
New
Zealand
04059001
Other butter and other fats and oils derived
from milk 119,682
27.5 Ex.
04022101 Milw and cream not containing added sugar 111,404 25.6 63
04021001
Milk in powder, granules or other solid form 39,137
9.0 63
28/06/2014
20
21. TPP Opportunities for Mexico
• New export opportunities for Mexican products such as
automobiles and auto parts, steel, electronics, cosmetics in
one of the most dynamic economic zones
• Investment. TPP membership will allow Mexico to remain an
attractive location for FDI (Mexico is 6th FDI recipient
among emerging markets)
• Domestic reforms. opportunity to push for reforms that will
allow Mexico to grow at higher rates (energy, telecomm,
transportation, banking, fiscal)
• Institutional strengthening. Strengthen and improve its trade
policy framework.
• Build trading blocs with NAFTA, Asia, LAM
28/06/2014
21
22. Challenges for Mexico
• Mexico will face again some problematic issues with
Asian countries that impede some bilateral treaties
with Singapore and Australia
Key Issues
• Agricultura: Australia, Nueva Zelanda
• Textiles, prendas de vestir y calzado Malasia,
Vietnam
• Relation with CHINA
28/06/2014
22
24. Conclusiones Del P4 al TPP
• Importance of the agreements is in its potential: South
Korea, Panama, Thailand, Indonesia
• Way to finish the paralysis in the WTO
• The most ambitious effort, together with the Trans-
Atlantic Agreement that is happening at the moment
28/06/2014
24