The Calm Before the TPP Storm

Over the past year, the Trans-Pacific Partnership Agreement (“TPP”) has been the subject of intense debate and considerable international press. Understandably so as TPP represents intense efforts by twelve countries representing nearly forty percent (40%) of the world’s Gross Domestic Product (“GDP”) — but not China — to proactively reduce or eliminate their countries’ barriers to trade between them.

Nonetheless, important discussions about specific TPP provisions and policies as well as the agreement’s potential impact on global geopolitical and country-specific trade concerns have been largely muted. The principal reason is that, other than limited releases of general TPP summaries and alleged copies of final negotiated TPP sections by Wikileaks, actually negotiated TPP text has not been publicly released. Consequently, TPP commentaries have generally been limited to reactions to those summaries provided by Participating Country governments, such as periodic updates posted online by the U.S. Trade Representative.

So during this “calm before the (next) storm” moment in what has already been a tumultuous U.S. TPP ratification process, let’s take this opportunity to briefly overview developments and next steps in the TPP finalization process.

The Twelve Participating Countries

Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam.

Important TPP Dates

11/14/2009:     President Obama announced that the United States intended to participate in TPP negotiations.

03/15/2010:     TPP First Round Negotiations in Melbourne, Australia.

06/29/2015:     U.S. Congress authorized President Obama’s Trade Promotion Authority (“TPA”), which allowed President Obama to conclude TPP negotiations and submit finalized TPP to Congress for a “yes/no” vote.

10/05/2015:     TPP concluded by Participating Countries.

Next Required Steps for U.S. Implementation of TPP

(1)        TPP Signing – 90 Days: At least 90 days before signing TPP, President Obama must notify the U.S. House of Representatives and U.S. Senate of his intention to enter into TPP and publish such intention in the Federal Register.

(2)        TPP Signing – 90 Days: At least 90 days before signing TPP, President Obama must request that the U.S. International Trade Commission (“ITC”) prepare an assessment of TPP.

(3)        TPP Signing – 60 Days: At least 60 days before signing TPP, President Obama must publish the TPP text on the U.S. Trade Representative’s website.

(4)        TPP Signing + 60 Days: Within 60 days after signing TPP, President Obama must submit to the U.S. Congress a description of changes to U.S. laws that the President deems to be required to ensure U.S. compliance with TPP provisions.

(5)        TPP Signing + 105 Days:  Within 105 calendar days after President Obama enters into TPP, the ITC must submit to the President and the U.S. Congress its assessment of TPP’s effects on the U.S. economy and specific industry sectors.

(6)        After TPP Signed: President Obama must submit to the U.S. Congress a copy of the final TPP legal text with a draft implementing bill, statement of proposed administrative action to implement TPP, and a statement of how the implementing bill and statement of proposed administrative action will change existing U.S. laws.

(7)        After TPP Signed: TPP implementing bill must be enacted into law by the U.S. Congress.

(8)        TPP Enforceable – 30 Days:  At least 30 days before TPP can be enforced by any Participating Member, the President must submit to the U.S. Congress his determination that the Participating Member has adopted measures to ensure compliance with enforceable TPP provisions.

This “TPP Snapshot” reflects that a lot of work has been undertaken by Participating Countries since the first round of TPP negotiations in March 2010. Nonetheless, President Obama’s administration has much remaining work to do in terms of approving and enacting TPP legislation – specifically, ensuring Congress’s “yes” vote to implement TPP.

For the immediate future, those following TPP developments anxiously await the President’s notification to the U.S. Congress of his intention to sign the TPP.  Importantly and as detailed above, this notification triggers a 30-day deadline by which the President must publish the TPP text on the U.S. Trade Representative’s website – thus ending a lull in TPP developments and heralding the TPP storm.

Because TPP is likely to impact the businesses of so many of our readers (both within and without China) we will continue to weigh in on those impacts, with a focus on companies doing business in China, with China and even elsewhere in Asia. Though China will not be a member of TPP, it will impact foreign companies doing business in China and with China and we will be writing on that here.

The post The Calm Before the TPP Storm appeared first on China Law Blog.

We will be discussing the practical aspects of Chinese law and how it impacts business there. We will be telling you what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy.