Brussels, 07/11/2012 (Agence Europe) - The US president re-elected on 7 November is expected to pursue a pro-active trade policy during a second mandate. This will be focused on free trade negotiations in the Asia-Pacific region, as well as a transatlantic free-trade agreement.
Barack Obama, a Democrat, relaunched negotiations for the Trans-Pacific Partnership in March 2010. These were launched by his Republican predecessor, George W. Bush. During his second mandate Obama will attempt to conclude an agreement between the US and Canada, Chile, Peru, Mexico, Australia, New Zealand, Brunei, Malaysia, Singapore and Vietnam. An agreement is hoped for in 2013, but discussions have barely begun to tackle the most sensitive questions. Japan and South Korea may also join the talks.
The second Obama mandate may also produce the eagerly awaited free-trade agreement with the EU. Europeans and Americans may recommend before the end of the year, the opening of negotiations at the beginning of 2013, in the perspective of reaching an agreement within the following 18 months. The benefits of a transatlantic agreement are based above all on the lifting of non-tariff barriers and regulatory convergence.
Similarly to European leaders, president Obama will also have to reach an agreement with China, with which the number of trade disputes since 2009 has risen significantly. His new administration will face continued pressure from US businesses competing with Chinese state capitalism and will be expected to put forward new cases to the WTO protesting against dumping practices and Chinese subsidies. Since January 2009, the first Obama administration submitted eight complaints against China at the WTO.
US fast-track trade legislation also known as the Trade Promotion Authority enables the White House to negotiate trade agreements it can submit to Congress for a vote within a 90 day period without amendments. For the time being, president Obama has not given any indication that he intends to renew this instrument. During its first mandate, the Obama administration appeared to suggest that it would ask for this legislation to be renewed, “when the time was right”. During the Bush era, the “fast track” was activated in 2002 as a means to conclude WTO negotiations in the Doha Round. It expired on 1 July 2007. (EH/transl.fl)