By Phillip Yu

After seven years of negotiations, Australia and Japan have settled on the major points of a bi-lateral trade agreement. Japanese tariffs on beef, fruit, vegetables, seafood, sugar, and wine will be lowered while Australian tariffs on electronics and cars will decline. 

Experts believe that this agreement will bring strong mutual benefits, citing the parties’ respective comparative advantages. This agreement marks the first time that Japan has ever negotiated a comprehensive economic partnership agreement with a major economy. 

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April 08, 2014

By Aliza Kempner

The United States and eleven other countries have sought to strengthen environmental protections worldwide in negotiating the Trans-Pacific Partnership. However, a draft chapter of the agreement WikiLeaks exposed last week reveals that many of the countries involved are seeking to undercut that goal. While the American proposal includes penalties in cases of environmental disputes, Pacific nations see things differently, advocating for a process without disciplinary teeth.

The New York Times considers the misgivings that could ensue, as some Trans-Pacific Partnership countries reject binding commitments on environmental issues, but appear willing to include similar terms in areas such as state expropriation of private businesses.

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February 10, 2014

By Aliza Kempner

President Barack Obama’s mission to place the U.S. stamp of approval on two of the largest free trade deals in our country’s history is hitting some turbulence. 

Senate Majority Leader Harry Reid, a Nevada Democrat, has questioned the White House’s approach to gaining concessions from other countries to finalize the Pacific Rim and European Union pacts without amendments and by skirting debate. Reid and other Democrats fear that the deals could cause serious injury to American labor and environmental protections and also harm the recovering U.S. job market. 

Politico examines the political undercurrent that leaves the agreement in a precarious position, with trade experts warning that other countries might dodge political risks in agreeing to a deal without the United States paving the way.

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February 05, 2014