Top US trade negotiator sees ‘important progress’ in TPP talks

TALKS between 12 nations drafting a Pacific-region trade agreement made progress on rules regulating state-owned enterprises, with differences over tariffs remaining one of the obstacles to a final deal, the top US negotiator said in an interview.

“There has been important progress made this week,” Barbara Weisel said yesterday in Hanoi, where representatives from the dozen Trans-Pacific Partnership countries wrapped up 10 days of talks today.

“We have spent successive rounds trying to narrow the gaps. There was very good progress on SOEs here.”

The TPP would create a freetrade zone from Australia to Peru with US$28 trillion in economic output, or 39 per cent of the global total.

The deal is a major part of President Barack Obama’s effort to bolster US influence in Asia as China flexes its economic and military muscle across the region.

Talks around the agreement are entering a critical phase as the Obama presidency nears its final two years and the looming presidential campaign threatens to slow its passage.

“They are under pressure and I think that most of the delegations understand that,” Deborah Elms, executive director of the Asian Trade Centre in Singapore, said in an interview at the Hanoi TPP negotiations.

“They have been talking in general terms. No one wants to concede anything until the last 48 hours.” — Bloomberg