AUCKLAND – Twelve Pacific Rim countries — representing around 40 percent of the world
economy — signed the Trans-Pacific Partnership free trade deal on Thursday in a
ceremony in Auckland, calling the pact a “historic achievement” for the region.
Japan, the United States, New Zealand and nine other countries will remove
or lower tariffs and introduce unified international trade and investment rules
under the text agreed last October.
“After more than five years of negotiations, we are honored to be able to
formalize our collective agreement,” trade ministers of the 12 countries said
in a statement.
The focus now shifts to ratification by the nations’ legislatures, the
final hurdle before it takes effect.
The agreement enters into force 60 days after all 12 countries ratify it,
if they do so within two years.
If it drags on for longer, it will take effect 60 days after at least six
countries, accounting for 85 percent of the combined gross domestic product of
the 12 signatories, ratify it.
A range of obstacles stand in the way, meaning the deal is unlikely to
enter into force before 2018.
In the United States, lawmakers are unlikely to debate the pact before the
presidential election in November, given that leading Democratic and Republican
presidential candidates are opposed to the deal.
U.S. Trade Representative Michael Froman told a news conference in Auckland
on Thursday that discussions with U.S. lawmakers on the trade accord are
underway and he is “confident” that Congress will provide the necessary support
for its approval.
Froman said he is “educating everybody what is in the agreement and
addressing their questions and concerns.”
The Japanese government, meanwhile, aims to submit a bill to the Diet
promptly for ratification, Shuichi Takatori, senior vice minister of the
Cabinet Office, told the same news conference.
Speaking to reporters in Tokyo the same day, Prime Minister Shinzo Abe
expressed hope that the signing of the pact will “lead to Japan’s growth and
wealth for the people.”
Takatori was the official assigned to sign the treaty after Akira Amari,
who led negotiations, resigned as economy minister last week amid a funds
scandal.
New Zealand Prime Minister John Key called for ratification to make the
fruits of the pact a reality. “Signature today is an important step but TPP is
still just a piece of paper,” he told the news conference.
The signing ceremony took place on the second day of the ministers’ meeting
in Auckland.
The 12 countries are Australia, Brunei, Canada, Chile, Japan, Malaysia,
Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Other Asian economies, including Indonesia, South Korea, the Philippines,
Taiwan and Thailand, have shown interest in joining the group.
“We recognize the interest shown by a number of other economies throughout
the region. This interest affirms our shared objective, through TPP, of
creating a platform that promotes high standards for broader economic
integration in the future,” the ministers said.
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