Andrew Robb welcomes US deal on Pacific trade

A congress vote to approve trade promotion authority for Barack Obama was “obviously a positive development’’, Andrew Robb says.

Trade Minister Andrew Robb says the passage of a fast-track authority by the US congress for the Trans-Pacific Partnership trade deal paves the way for a final ministerial meeting next month to conclude the agreement.

Mr Robb described Wednesday’s vote by congress to approve trade promotion authority for US President Barack Obama as “obviously a positive development’’.

For months TPP negotiators have been waiting for congress to give Mr Obama the power which limits the US legislature to a simple yes or no vote on the trade deal after it is finalised rather than ­examining it clause by clause.

Remaining sticking points include tariff reductions on auto parts and rice between Japan and the US and dairy in negotiations with Canada. The Australian dairy industry is pushing for an opening in market access by the Canadians.

Negotiations are also continuing on intellectual property and how long some pharmaceuticals should be protected from competition by generic drugs. But the inclusion of an Investor State Dispute Mechanism in the deal and the negotiations on pharmaceuticals and intellectual property have sparked a campaign in Australia against the TPP.

The Productivity Commission this week warned that the inclusion of a provision to allow multinational companies to sue Australian authorities in third countries could undermine the role of domestic courts and “the freedom of governments to regulate in the public interest’’.

GRAPHIC: The TPP agreement

The Department of Foreign ­Affairs and Trade yesterday moved to dispel “myths’’ about the TPP including the legal provision known as Investor State Dispute Settlement which it said would not impact on Australian sovereignty.

DFAT also said the government had said it would not accept an outcome in the TPP which harmed the PBS or the health system or an outcome that increased the price of medicines for Australians.

It rejected suggestions that the TPP would change intellectual property provisions. The government did not support any proposals that would require changes to Australia’s current intellectual property arrangements, including the copyright regime.

Mr Robb said the TPP brought transformational promise with more seamless trade and investment across 12 countries,­ which accounted for almost 40 per cent of global GDP. “This agreement would translate into growth, jobs and higher living standards. The open architecture would allow for more countries to join in future,” Mr Robb said.