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After six days of deliberations on a sweeping trade agreement that officials had hoped to have wrapped up by last Thursday, trade ministers from 12 Pacific Rim nations announced Monday morning in Atlanta that they had reached consensus on the Trans-Pacific Partnership.
The pact, which encompasses countries comprising 40 percent of the global economy, will cut tariffs on many products and achieve mutual recognition of standards on others.
“Most importantly, the agreement achieves the goal we set for an ambitious, comprehensive, high-standard, balanced agreement that will benefit our nation’s citizens,” said U.S. Trade Representative Michael Froman at a press conference at the Ritz-Carlton downtown. He added that the tariff reductions amount to 18,000 tax cuts in countries with which the U.S. currently has no free-trade pact.
The deal would affect international trade for decades to come, and trade ministers seized on that sentiment in their remarks.
Minister Andrew Robb of Australia said it’s the seemingly mundane issues like unified standards for electronic customs clearance that are some of the most impactful pieces of the deal, keeping red tape from further dragging down the global economy. Other ministers said the TPP will invariably attract other countries who have already expressed interest in joining, multiplying the deal’s promise for exporting a system of rules-based trade consistent with democratic values.
But the pact now faces ratification battles in the partner nations’ respective legislatures. If passed in Congress, the TPP would ensure an enduring legacy for President Barack Obama’s trade agenda. Mr. Froman, who will speak before Congress Monday, said the deal will be a “2016 issue,” given that trade-promotion authority requires President Obama to give Congress 60 days notice before putting it to a vote.
Whatever the outcome in the legislature, it’s already a historic moment for Atlanta, enshrining the city as the place where top trade officials exhibited dogged commitment to finding middle ground on a deal that had seemed stalled at times after five years of talks.
Mayor Kasim Reed injected himself into the conversation last Thursday, calling on negotiators to conclude the deal, which he said would be vital to cities’ efforts to create jobs for their communities.
“We really need to be first to the future here,” he said Thursday while touring a local mattress factory with Mr. Froman.
In a statement Monday morning, Mr. Reed said the agreement would be a boon for small-business exporters, making them healthier companies overall.
“In Atlanta, small businesses are the backbone of our local economy and the primary engines of growth and innovation. Small businesses that export to foreign markets grow faster, create more jobs, and pay higher wages than small businesses that serve purely domestic markets. Yet, these companies rely on international trade rules to access overseas markets, and without fair trade rules, Atlanta-based and American businesses face unfair disadvantages,” he said. “The TPP will reduce barriers to small business exports by cutting tariffs and reducing non-tariff barriers, opening the fastest growing region in the world to our small business exports.”
Metro Atlanta Chamber President and CEO Hala Moddelmog had a similar reaction, echoing the need to level the playing field and open new markets in both Asia and Latin America.
“We are thrilled that the negotiators have reached an agreement on the Trans-Pacific Partnership, and that they did so in Atlanta,” Ms. Moddelmog told Global Atlanta. “Our region is increasingly focused on global trade and investment, and TPP is important for our small and medium-sized businesses in growing the economy and adding jobs.”
The talks continued to drag on over the last few days as trade ministers sought to overcome a variety of sticking points such as exclusivity on drug patents, dairy products and rules of origin for automotive parts. Officials said their overnight talks Sunday yielded compromises that pushed the deal to its conclusion.
New Zealand trade minister Tim Groser said talks on dairy lasted until 5 a.m. Monday morning.
No explanation was given for moving the finale event from the Westin Peachtree Plaza, which had hosted the entire round of negotiations.