Cablegate: Tpp Country Representatives Looking to Melbourne for Answers

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TAGS: ETRD ECON ECIN EINV PREL VM
SUBJECT: TPP Country Representatives Looking to Melbourne for Answers

1. (SBU) Summary: At a December 21 dinner hosted by the
Ambassador, Trans-Pacific Partnership (TPP) country representatives
inquired about the goals and objectives of the United States at the
upcoming Melbourne meeting March 15-19, including the shape and
content of the agreement to make it a 21st century agreement,
timing, and rules for new members. The group agreed that the first
round of negotiations in Melbourne will be key to answering some of
these questions as well as setting the stage for future talks.
Vietnam's Vice Trade Minister said Vietnam still must decide
whether it wants to be a full member of TPP. As the Melbourne
meeting approaches, Post would appreciate any additional
information Washington can provide on the TPP process and next
steps. End summary.

2. (SBU) Ambassador hosted a dinner on December 21 for
Trans-Pacific Partnership (TPP) Agreement country representatives,
including Ambassadors/Charges from Australia, New Zealand, Brunei,
Chile, and Singapore (Peru is not represented in Vietnam). Vietnam
officials included Ministry of Industry and Trade (MOIT)
Vice-Minister Nguyen Cam Tu (Vietnam's official lead TPP
negotiator), MOIT Director General for Multilateral Trade Tran Quoc
Khanh, and Ministry of Foreign Affairs (MFA) Director General for
Multilateral Economic Policy Nguyen Nguyet Nga.

TPP Members Looking for Clarity at Melbourne Meeting

3. (SBU) Ambassador informed the guests that the United States
Trade Representative (USTR) Kirk had formally notified Congress of
the Administration's intent to enter into TPP negotiations on
December 14, and briefed the group on USTR's on-going consultations
with Congress and stakeholders. The Australian Charge said
Australia wanted to support USTR Kirk in his efforts to promote
TPP, noting that the TPP Ambassadors in Washington were considering
writing a letter to Kirk (that he could use with others) if that
would be helpful. MOIT Director General Khanh commented that it
was not an easy time to promote new trade agreements in the United
States given record high unemployment; USG officials had to explain
how this agreement would translate into new jobs. Several
Ambassadors observed that officials needed to make the same case
for TPP in their own capitals.

4. (SBU) The group agreed that the March 15-19 meeting in Melbourne
would be important for setting the stage for future talks. MOIT
Director General Khanh said the GVN considers the March meeting to
be a "scoping" exercise; the Singapore Ambassador concurred,
calling it a "pathfinding" meeting. The attendees agreed there
were still many unanswered questions about TPP, including what a
"21st century agreement" would include, how it would relate to
existing trade agreements, and what was a realistic timeframe for
negotiations. Most of the group emphasized that one of the most
important outstanding issues - and a key task for negotiators in
March - was determining the rules for new members. (Note: The
Australian and New Zealand representatives asked econoff separately
what U.S. policy was on additional TPP members, noting they had
heard the U.S. may be open to the idea. End note.) The officials
said they expected more clarity on all of these questions after the
Melbourne meeting.

Vietnam Still on the Fence

5. (SBU) MOIT Vice Minister Tu underscored that the most important
decision facing Vietnam was whether it wanted to be a full member
in the TPP, claiming there may not be enough time to close the gap
between Vietnam and the other members before negotiations
concluded. MFA Director General Nga added that Vietnam would need
"special accommodation," and asked if other members were willing to
help as they had when Vietnam acceded to the World Trade
Organization. MOIT Director General Khanh offered that he thought
there would not be a lower standard for Vietnam in the TPP;
however, he expected there would be a significant chapter on
technical assistance and additional time for Vietnam to phase in
certain provisions. The Ambassador urged Vietnam to enter the
negotiations with an open and flexible approach.

6. (SBU) Comment and action request: This dinner meeting confirmed
there is real enthusiasm about TPP, but also many outstanding
questions. It was clear that the participants see the US as the
major driver of the TPP and expect us to play a leading role in
setting out our expectations and ambitions for the agreement.
Participants also want to continue to meet informally to exchange
information and gossip as the process moves ahead and agreed to
meet again the first week in March just prior to the Melbourne
meeting. USTR and State's regular updates have been key to helping
us answer the many TPP-related inquiries we receive. As the
Melbourne meeting approaches, we would appreciate any additional
information Washington can provide, i.e., the composition and
organization of our TPP negotiating team, the interagency process
in Washington, updates on USTR's ongoing consultations with
Congress and stakeholders, and next steps.
Michalak

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