Obama To Engage Brunei, Other Trans-Pacific Partnership Members

Bandar Seri Begawan - Size maybe matters at time. But for now, it matters little. When the Trans-Pacific Partnership (TPP) agreement was signed in 2005 and came into force in 2006, the agreement garnered little attention, perhaps due to the modest size of the economies of its original signatories. But here in Singapore, the TPP is morphing into what could be the nucleus for a massive Trans-Pacific free-trade zone agreement covering 2.6 billion people. TPP's founding members - Brunei, Chile, Singapore and New Zealand - are now the centre of world attention. Their once "obscure" treaty could in fact become an earth shattering one.

The US, along with Australia, is leading efforts at utilising the potential of the TPP, expanding it into a global venture that involves top players in world economy. This has been directly stated and restated by US officials in Singapore. The US, the TPP members and other "member economies" are currently meeting in Singapore's

Asia-Pacific Economic Cooperation (Apec) Summit.

US President Barack Obama, who is also joining the Apec meet, voiced his optimism regarding the future role of the Trans-Pacific Partnership while still in Japan, his last stop before the summit.

Obama announced his country's intentions to engage the TPP countries during a speech in Tokyo. "The United States will also be engaging with the Trans-Pacific Partnership countries with the goal of shaping a regional agreement that will have broad-based membership and the high standards worthy of a 21st century trade agreement," the US president said.

The US, along with Australia, Peru and Vietnam have expressed repeated interest in the agreement in the past. However, Obama's comment in Japan signalled Washington's serious intentions to turn its words into substantive engagement.

Obama's comments were hardly isolated remarks. US Trade Representative Ron Kirk was also keen on highlighting his country's readiness to explore future relations with the TPP. In a speech at a business forum on the sidelines of the Apec Summit, Kirk said: "We seek with current and future TPP participants, to shape a platform with the scope and coverage and the high standards to successfully integrate the Asia-Pacific economies."

"Our engagement in the Trans-Pacific Partnership gives us the opportunity to address gaps in our current agreements."

The US however is not alone in this. Prime Minister of Australia Kevin Rudd yesterday spoke about establishing a new model for cooperation that he calls the "Asia-Pacific Community".

Although he didn't directly mention the TPP, Australia has been considering the prospects of joining the Trans-Pacific Partnership. "Our vision for the future is how do we create an institution which draws all these economies. And, most importantly, together with an agenda which covers the political, security, and economic space," he said.

Australia's direct reference to the TPP was communicated just hours following the comments made by the American president and his top trade official.

Australian Minister of Trade Simon Crean welcomed Obama's and Kirk's comments regarding the TPP here yesterday, stating, in a statement received by The Brunei Times that the US announcement will enable the TPP negotiations -comprising Australia, Brunei, Chile, New Zealand, Peru, Singapore, the US and Vietnam - to move forward.

"The eight participating countries all have quality FTAs themselves," Crean said. adding, "the grouping will define what it is we need for a modern 21st century trade agreement. The intention is that the agreement will expand to include other countries willing to sign up to the same principles."

"The US announcement is a significant statement of its intent to the Asia-Pacific region.

Importantly, it provides the critical mass essential for the initiative to go forward," he said.

Singapore's Ministry of Trade and Industry also welcomed the announcements. It said yesterday in a statement, a copy of which was obtained by The Brunei Times, that "Singapore welcomes the announcement by US President Barack Obama in Tokyo this morning that the US will engage the Trans-Pacific Strategic Economic Partnership Agreement"

"With this commitment from the US, the TPP now has the potential to expand to an eight-member grouping. Singapore looks forward to working with the TPP countries in developing a high quality 21st century trade agreement that meets the need of modern businesses and which allows at the same time for the TPP to grow into a larger agreement with a broad-based membership across the Asia Pacific," the statement read.

Meanwhile, Singapore's Trade and Industry Minister Lim Hng Kiang said that the US announcement "sends a strong message of US economic engagement with the Asia Pacific.

It also presents us with a good opportunity to shape a high quality free trade agreement (FTA) that can be the nucleus of a future FTAAP," the prospective Free Trade Area of the Asia-Pacific.

When the TPP came into force in 2006 it was considered a pathway to trade liberalisation across the Asia-Pacific region. Currently, it is the only agreement that spans both sides of the Pacific.

The FTAAP, on the other hand, was endorsed in 2006 as a long-term prospect for the region. "The expansion of the TPP to include other Apec

Members (to eventually achieved the prospected FTAAP) will place renewed focus on regional economic integration," said the Ministry of Trade and Industry statement.

An announcement with specific plans regarding the expansion of the TPP is yet to be made. Until that happens, however, countries like Brunei, Singapore and others continue to win admiration for laying out a vision that could possibly soon engage a large portion of humanity. Size, after all, doesn't matter much.-- Courtesy of The Brunei Times

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