The U.S. stands to gain from the TPP in Asian markets, Key noted. “The real issue here is can U.S. corporations get better access to the Asian market? The answer under TPP is yes,” Key said.
Key warned that if Congress does not approve the TPP, member nations will seek trade agreements with other countries, including China, which provides favorable tariffs and trade policies for export businesses. “These nations will not stand still,” he said.
Potential growth in markets for U.S. companies would be more tied to TPP providing an attractive framework that might draw in China, South Korea and other big economies in Asia. China is interested in the TPP because leaders are trying to transform its economy from an industrial manufacturing model to a service-based one, Key said. Basically, the Asian story has been a Chinese story but it might increasingly become an Indian story,” Key said.
While the U.S. is looking at ratification of the TPP, it is also looking ahead to the potential for other nations to join the pact. A prime candidate to join TPP in the future is Taiwan, but existing trade issues with the U.S. need to be resolved in order to strengthen a bid by Taiwan to join. “Pork is certainly one of the important issues in that dialogue,” said Deputy Assistant Secretary of State for the Bureau of Economic and Business Affairs Kevin Tong, in remarks to a media roundtable in Taipei.
A primary sticking point for U.S. pork imports to Taiwan is the latter’s insistence that all imported U.S. pork be certified as free from the growth promoter ractopamine. A March 29 meeting between Tong and Taiwan’s President-Elect Tsai Ing-wen did not include discussion of the pork issue.