Getting TPP right more important than getting it fast, says US envoy

Trade ministers and representatives attend the Trans-Pacific Partnership (TPP) Ministerial Meeting in Singapore on Feb 22, 2014
(Photo: AFP/Roslan Rahman)

SINGAPORE: The negotiations for the Trans-Pacific Partnership (TPP) may be slow and laborious, but the timeline for the implementation of the ambitious free trade agreement should not be an issue as it is set to be a game changer for regional economies, United States Ambassador to Singapore Kirk Wagar said on Wednesday (Oct 29).

Speaking to reporters on the sidelines of a seminar commemorating the 10th anniversary of the Singapore-US FTA, Mr Wagar noted: “When you have 12 parties ... you want to try and get the details right. The reason why it’s taking so long is because it’s an agreement that people expect to be bound by. This isn’t just some ceremonial agreement, it’s one that will raise the standards of trade for this region.”

When completed, the TPP will remove trade barriers between 12 regional economies, including the US, Japan, Australia, Singapore and Malaysia. But issues over market access to key industries in individual nations – such as the tussle between Japan and the US over the automotive industry – remain a major hurdle.

The latest round of negotiations was in Sydney last week, with a tentative goal to finalise a deal by the end of this year. But Mr Wagar said getting it right is more important than getting it fast.

“I think we have some real opportunities to lock down the few remaining issues. I don’t think (the timeline) is the point,” he said. “The point is we made a tremendous amount of progress from the start as a four-piece negotiation to now a trade agreement that will have 40 per cent of the world gross domestic product. So, getting it right is better than some arbitrary timeline.”

On US congressional support for the TPP, Mr Wagar stressed that the FTA was welcomed by all parties, saying: “Trade has always enjoyed bipartisan support – we’ve just had deals with Columbia, Panama and South Korea. This is a long tradition that goes back to the North American Free Trade Agreement ... We get things done when we need to get things done.”

SINGAPORE-US TRADE GROWN ‘TREMENDOUSLY’

While progress on the TPP has been slow, trade and investment ties between Singapore and the US have grown tremendously since their bilateral FTA came into force in 2004.

Also speaking at the seminar on Wednesday was Singapore’s Ambassador-At-Large Tommy Koh, who led the FTA negotiations. He noted that the trade deal has been a great success story.

“In the past decade, US goods exports to Singapore increased by over 85 per cent ... Singapore’s services exports in the same period also rose by over 100 per cent,” said Professor Koh.

And as US President Barack Obama pushes for the rebalancing to Asia in his foreign policies, there is room for the US to further expand its trade links to both Singapore and South-east Asia, Prof Koh noted.

“Once upon a time, you were the Association of Southeast Asian Nations’ top trading partner. Today, you’re number four ... My message to the US business community is this: We need more investments from America – and you still have a lot of catching up to do.” he said.