TPP negotiations kept hanging in the balance

Vietnamese businesses can take advantatge of the opportunities provided by the TPP with proper strategies

The meeting of minds in Hawaii will be the basis for the next round of negotiations.

Productive negotiations

This round of negotiations between trade ministers took place from July 28-31 2015. Prior to this, the heads of the TPP negotiation teams and associated technical groups had been involved in negotiations from July 24, making active preparations for the trade minister meetings.

Australian Trade Minister Andrew Robb stated in a press release in early August, “the Hawaii round of TPP negotiations is supposedly the most effective ever seen at both the ministerial and technical levels”. He added, however, that “nothing is agreed until everything is agreed, but we have come to preliminary decisions on more than 90 per cent of the issues in the TPP”.

“We are more confident than ever that the TPP is within reach… We have agreed we are going to continue to engage intensively in this coming period, with the goal of resolving outstanding issues.”

Many sources also said that some tough issues such as investment, public procurement, e-commerce, and the environment had also seen substantial progress at negotiations in Hawaii.

In respect to Vietnam, this negotiation could be regarded as a great success, as Vietnamese negotiators have concluded bilateral negotiations with all 11 remaining TP members, including the US.

Prior to this round of negotiations, there have been a raft of unresolved issues between Vietnam and the US in fields such as labour (trade unions), the opening of the market for products (textiles and clothing), and services (distribution and telecoms).

Message to businesses

This is not the first time that the target to complete the TPP negotiations has been missed. We had high hopes and were disappointed numerous times when the TPP failed to be concluded, despite goals being set for late 2012, 2013, and 2014. However, the fact that the TPP deal was not closed this time does not mean the negotiators have failed again.

By contrast, what we have achieved in this round of negotiations will be an important precondition for full completion of the TPP deal in the near future.

For a great many Vietnamese companies who long to take advantage of the opportunities the TPP promises, these delays may indirectly affect their business.

The TPP deal may be signed in the foreseeable future. Meanwhile, preparations usually take a long time. Therefore, local businesses must focus on strategies that will empower them to take advantage of the opportunities provided by the TPP and minimise its challenges when the deal comes into effect.

By Lan Phuong - Expert at the WTO Centre under Vietnam Chamber of Commerce and Industry