Brussels, 25/06/2015 (Agence Europe) - On Wednesday 24 June, the US Senate gave its approval to the Trade Promotion Authority bill, which grants increased powers to US President Barack Obama to negotiate and conclude trade agreements with 11 countries from the Asia-Pacific region (TPP) and also with the EU (TTIP), as part of the so-called fast track procedure.
After six weeks of bitter political battle marked by strong opposition from within the Democrat camp (to which Obama belongs), the Senate voted in favour of the bill by 60 votes to 38. The bill will enable Obama to negotiate and conclude free trade agreements, and to ask Congress to block vote for or against the agreement, without the possibility of amendment. The bill must now return to Congress and could be initialled by Obama before the end of the week.
After being renewed for another three years in 2018, the fast track procedure will be valid until 2021 and will thus be applicable to any trade agreement negotiated by Obama's successor (who is due to take up presidency in January 2017).
Acceleration for TPP. The adoption of the fast track procedure could provide acceleration for the TPP negotiations, which are already well advanced. The TPP would be the most important free trade agreement for a generation, with its scope being comparable to the North American Free Trade Agreement (NAFTA) that links the US, Canada and Mexico. The TPP would involve 40% of the world's economy, covering the US, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Delicate issues nevertheless remain to be resolved - such as the duration of exclusivity for patents on new medicines, and the system applied to public services. Canada and Japan would like to see the White House agree the fast track procedure before putting forward new proposals, so as to ensure the US Congress cannot undo a possible draft agreement. (Emmanuel Hagry)