Trans-Pacific Partnership Negotiations: Participants

Report
Regional Trade and
Food Industry Interests
Ken Roberts
Mondelēz International
we offer many of the world’s favorite brands
2
fast facts
net revenues of $35 billion in 2013
products marketed in 165 countries
#1 in biscuits, chocolate, candy & powdered
beverages *
#2 in gum & coffee *
over 100,000 employees
donated more than one billion servings of food
since 1997
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* Source: Euromonitor market share
Backdrop to TTP and T-TIP
• Regional trade growth in a globalized world
• GATT established 1994, twenty years of change
• Basis arms length transactions, unrelated parties
• Single undertakings, rounds of multilateral negotiations
• Over 300 Regional Trade Agreements (RTA’s) today
• 90% increase since 1994
• Lower trade costs led to global value chains
• 80% trade transactions are firm driven
• Environment more transactional, work around barriers
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Pros and Cons of RTAs
PROS
• Trade facilitating, bring economic and political integration
• Freer flow of goods and services, risk diversification
• Consumers, manufacturers benefit from lower prices
• Better producer export opportunities
CONS
• Competition leading to trade frictions, trade remedies
• Trade diversion, confusing rules of origin
• Behind the border costs increasing
• Preference erosion, undermining multilateral system
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Regional Trade Agreements
expansion
[ 1975]
Source: IDB Integration and Trade Sector based on INTrade.
Regional Trade Agreements
expansion
[ 1995]
Source: IDB Integration and Trade Sector based on INTrade.
Regional Trade Agreements
expansion
[ 2014]
Source: IDB Integration and Trade Sector based on INTrade.
…rise of global value chains in
world trade…
Percentage of Exports that are Part of a Multistage International
Production Process (average 2003-2010)
Source: Blyde (forthcoming ). The International Fragmentation of Production: Latin America and the Caribbean in the Era of Global Value Chains .
Share of World Trade Covered by
RTAs
(1960-2010, in percent)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Source: IDB-INT based on COMTRADE import flows and INTrade RTA dummies.
Partners in RTAs worldwide…
(1960-2012)
300
250
200
South-South
North-South
North-North
150
100
50
0
Source: IDB-INT based on WTO RTA database.
Strengthening the
Multilateral Trading System:
The Rise of Regionalism
E-15 Initiative
Antoni Estevadeordal
Manager
Integration and Trade Sector
Inter-American Development Bank
CSIS – Washington – May 12, 2014
Trans-Pacific Partnership
Negotiations (TPP)
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Core TPP Principles Agreed By The Food
and Agricultural Sector
•
TPP agreement must cover all elements of trade and investment.
•
There must be no product or sector exclusions, including in agriculture.
•
All tariffs and other market access barriers must be phased out by the
end of the negotiated transition period.
•
Risk based scientific decision making, regulatory convergence, and
equivalence are critically important.
•
Obligations that go beyond those in the WTO must be subject to TPP
enforcement provisions.
•
The agreement must be a single undertaking.
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Negotiating Groups of Interest
• Agricultural market access
• Labor
• Competition/SOEs
• Legal issues
• Cooperation and capacity
building
• Rules of origin
• Customs
• Sanitary and phytosanitary
(SPS) measures
• E-commerce
• Services
• Environment
• Technical barriers to trade
• Financial services
• Telecommunications
• Government procurement
• Textiles and apparel
• Industrial goods market access
• Trade remedies
• Intellectual property
• Horizontal issues
(competitiveness, development,
regulatory coherence, SMEs)
• Investment
Outstanding TPP Issues of Interest
• Ag market access crux of negotiation
• Treatment of sensitive products remains key
• Differences over intellectual property and environment
• Customs provisions could improve trade facilitation
(behind the border inefficiencies)
• Rules of origin for sugar containing products
SPS Rules
• WTO-plus provisions
– Science and risk analysis
• Assessment: Better definition; more detailed requirements
• Management: Least trade restrictive option
• International standards
– Border checks/laboratory testing
• Frequency and nature of checks
• Testing: 1) confirmatory test; 2) appropriate facility; 3) validated test
methods
– Transparency (notice & comment; implementation)
• Positive USG response/development: Enforceability
Market Access
• Obstacles to comprehensive tariff liberalization
• U.S. proposal on “yarn-forward” rules of origin for textiles;
Vietnam strongly opposed, withheld offer on sensitive agricultural
items
• Insufficient U.S. offer on sugar to Australia
• Japan’s five sensitive products – rice, wheat & barley, beef &
pork, dairy, sugar & starch
• Canada’s wait and see attitude toward dairy and poultry
• Non-comprehensive market access would disappoint many in ag
and food industry, threatening Congressional passage
• Resulting in limited access to Japan, Canada and Vietnam
• Poor precedent for TPP expansion (China) and TTIP
Transatlantic Trade and Investment
Partnership (T-TIP)
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Ag and Food Industry Priorities for T-TIP
• Must be comprehensive, no product or sector exclusions,
and be a “single undertaking”
• Elimination of all EU import duties and in the shortest
time period possible. Antidumping measures eliminated to
avoid “back door” tariff barriers.
• Science-based decision making
• Strengthen and elaborate requirements regarding risk
assessment and risk management
• Require parties to provide an adequate grace period
before implementing new, non-emergency measures
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Ag and Food Industry Priorities for T-TIP
• Reinforce WTO rules requiring regulators to select the
least-trade-restrictive of available risk management
options.
• Develop agreed-upon lab testing protocols
• Enhance transparency through timely notification of all
new measures
• Develop effective dispute settlement mechanisms to
ensure swift resolution of current and future SPS and TBT
trade barriers
• Rapid Response Mechanism (RRM) to provide swift
private sector notification of shipment issues and nonbinding and public expert review
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Outstanding T-TIP Issues of Interest
• Market access treatment
• Regulatory cooperation
• Coherence of food safety requirements
• Ingredient requirements
• Geographical Indicators (GI’s)
• Animal welfare
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Global Issues of Mutual Interest
• Public health priorities targeting obesity and malnutrition
• Transparent and inclusive process by governments
• Scientific basis for policy changes
• Ingredient restrictions and selective taxes
• Labeling modifications, front of pack, nutrition facts panel
• Advertising to children
• Sustainability
• GMO’s
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Questions or Comments
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