Australia ‘will steal markets’ if US lags on TPP, negotiator says

If the US lags on approving the TPP, Australia will gain market access at its expense, Obama’s top negotiator says.

US President Barack Obama’s top trade negotiator has warned Australia could get access to markets ahead of the US unless Congress ratifies the TPP. Picture: AP Photo/Susan Walsh.

US President Barack Obama’s top Trans-Pacific Partnership negotiator has bullishly predicted the trade deal will be approved by Congress after next week’s presidential election if congressional leaders bring it up for a vote.

Michael Froman also warned if Congress does not ratify the 12-nation free trade proposal Australia, China and other nations will swoop in and steal markets from the US in the Asia-Pacific.

“It’s up to the congressional leadership to decide to bring it forward,” Mr Froman told CNBC on Tuesday.

“If they bring it forward I think we can get the votes there.”

Presidential frontrunners Hillary Clinton and Donald Trump both oppose the TPP and members of Congress, many who are also up for re-election next Tuesday, have been reluctant to show public support for the contentious trade pact.

Mr Obama and Mr Froman are hoping the antitrade sentiment will recede after the election and members of Congress will be willing to ratify it before Mr Obama moves out of the White House in January.

“I think the key thing is the rest of the world isn’t standing by whether it is China negotiating its own trade agreements or the EU, Canada or Australia or others, they are going to move ahead and get access to these markets at our expense,” Mr Froman said.

“Our market share is actually in decline in some of these important, fast growing and large markets so it is awfully important we show leadership.”

The TPP signatories are: Australia, the US, New Zealand, Japan, Malaysia, Vietnam, Singapore, Brunei, Canada, Mexico, Chile and Peru.

AAP