Kerry confident of concluding TPP trade pact this year
HANOI|BY
DAVID BRUNNSTROM
U.S. Secretary of State John Kerry expressed confidence on Friday that an ambitious Pacific trade pact could be completed this year and said a recent nuclear deal with Iran proved hurdles in international agreements could be overcome.
Kerry said many challenges remained in thrashing out a Trans-Pacific Partnership (TPP), particularly on issues of autos and dairy, but the United States would do everything in its power to make it happen.
"There are a few remaining issues ... which I am confident will be resolved," Kerry told a news joint conference with Vietnamese Foreign Minister Pham Binh Minh in Hanoi.
"We are hoping very much that over the course of the next couple of months, before the end of the year, TPP can be completed," he said.
The U.S.-inspired TPP is a "mega regional" accord set to cover 12 countries with a combined gross domestic product of $28 trillion, among them Australia and Japan.
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Kerry likened the TPP talks to a deal negotiated over 18 months between Iran and six other countries to lift sanctions in return for curbs on a nuclear program Iran insists is peaceful.
"It's very complicated. I will tell you that having just negotiated with Iran ... there were six of us all with expertise, all with our own opinions and we had to come together in order to agree on what we would then negotiate with Iran.
"This is the same thing," he said of the TPP.
The TPP would connect the 12 economies by cutting trade barriers and harmonizing standards covering two-fifths of the world economy and a third of global trade.
TPP trade ministers discussing the pact, which would stretch from Japan to Chile, have said an agreement is within reach, despite the failure last week to settle differences at talks in Hawaii.
Kerry met Vietnamese President Truong Tan Sang and said it was crucial to iron out remaining issues.
"One of the very important things now is for us to be able to stay where we are on the TPP negotiations, not to slide backwards, but to finish that job in which Vietnam is very much an important contributor," Kerry said.
Vietnam's export-dominated economy could be among the biggest beneficiaries of the TPP because of its farm and fisheries resources, cheap labor and growing manufacturing sector, especially in textiles, footwear, telephones and televisions. Among its investors are Samsung, LG and Microsoft.
Vietnam has some lingering concerns on TPP, including issues related to labor, which Kerry said could be settled.
(Writing by Martin Petty; Editing by
Robert Birsel)
U.S. Secretary of State John Kerry speaks during a news conference in Kuala Lumpur, Malaysia August 6, 2015.
REUTERS/BRENDAN SMIALOWSKI/POOL
Kerry confident of concluding TPP trade pact this year| Reuters
China's July exports slump 8%, raises pressure for more stimulus
7 Hours AgoReuters
On Friday the central bank published a report warning of further economic weakness, but argued the economy needed a retooled growth engine, instead of short-term stimulus.
Economists also blame a strong yuan for the export weakness, with ANZ Research estimating the currency's nominal effective exchange rate has risen by 13.5 percent since June 2014.
Analysts say Beijing has been keeping its yuan strong to wean its economy off low-end export manufacturing. A strong yuan policy also supports domestic buying power, helps Chinese firms to borrow and invest abroad, and encourages foreign firms and governments to increase their use of the currency.
"These factors suggest that China's exports will continue to face strong headwinds," Liu Ligang and Louis Lam said in an ANZ Research note on Saturday, adding that they doubted Beijing would hit its trade growth target of 6 percent for this year.
China's weak import figure partly reflects weak commodity prices paid to trading partners such as Australia, which ships coal and iron ore to China. Volume imports of most major commodities were higher than expected, as Chinese industry took advantage of the lower prices to restock on raw materials.
Coal deliveries in particular rose strongly in July, up 28.1 percent, though commodity analysts said that prospects for the market remained dim overall.
Stephen Koukoulas, managing director of Australian consultancy Markets Economics, said the fall in commodity prices was a major concern for the Australian and New Zealand economies, which both rely heavily on demand from China.
"Probably the volumes are ok but the prices that are being paid are hugely lower. We have got a real concern there for the future levels of the Aussie dollar," Koukoulas said.
China economy: July exports slump 8%
TPP coming much closer, China economy sinking much faster, China may devalue its Yuan soon since
strong yuan is an excuse for the export weakness