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2017 | OriginalPaper | Buchkapitel

25. Accession to TPP: Veto Power and “Opt-Out” Option

verfasst von : Shintaro Hamanaka

Erschienen in: Paradigm Shift in International Economic Law Rule-Making

Verlag: Springer Singapore

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Abstract

One of the most important policy questions relating to the future impact of the Trans-Pacific Partnership on the global and regional economy is whether other countries in the region, particularly China, will join the partnership. While several commentators have made some observations regarding the future prospects of TPP expansion, little scholarly analysis has been conducted. To go beyond the speculation of a certain country’s accession to TPP, we first attempt to generalize the issue before moving on to a specific question. We conduct a comparative analysis of a large number of regional trade agreements (RTAs) for a better understanding of the parameters of RTAs that are critical for membership expansion. This general framework enables us to conduct a systematic examination of specific membership expansion cases, such as China’s membership in TPP. The paper also proposes a necessary “accession practice” that truly facilitates new members’ participation to TPP and RTAs in general.

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Vorheriges Kapitel Mega-FTAs and Plurilateral Trade Agreements: Implications for the Asia-Pacific

Nächstes Kapitel Memento Mori: Membership Issues Surrounding Entry into, Modification of, and Withdrawal from the TPP

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Baldwin and Low (2009).

While there are studies on the accession to institutions (Kelley 2004), those focusing on accession to RTAs are limited. Hamanaka (2012) found that South–South RTAs based on the Enabling Clause tend to have an accession clause.

Hamanaka (2014a).

Regional Trade Agreements Information System (RTA-IS) Database of WTO. Available at: http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx.

Ruggie (1992).

Capie and Evans (2002) 39.

Krauss and Pempel (2007).

Capie and Evans (2002) 40.

Ruggie (1992) 571.

It is not entirely clear whether withdrawal of membership from RTAs shall be notified to WTO, although one could argue that withdrawal is a serious modification of an RTA. In reality, no notification regarding withdrawal is included in RTA-IS. Bulgaria, Croatia, and Romania withdrew their membership in the Central European Free Trade Agreement (CEFTA). Austria, Denmark, Finland, Portugal, Sweden, and UK withdrew membership from the European Free Trade Association (EFTA). Angola, Lesotho, Mozambique, Namibia, and Tanzania withdrew membership in the Common Market for Eastern and Southern Africa (COMESA).

For example, one condition to become a member of European Union is that the applicant should be a European country, while ‘European’ is undefined.

In addition to the 11 subsidiary RTAs listed in the Appendix 16, there are 9 subsidiary RTAs: Andean Community FTA, Commonwealth of Independent States (CIS), CIS FTA, Central African Economic and Monetary Community (CEMAC), Economic Community of West African States (ECOWAS), Economic Cooperation Organization (ECO), Gulf Cooperation Council (GCC), SAARC Preferential Trading Arrangement (SAPTA), and the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA). Note that both CIS and CIS FTA are separately notified to the WTO.

Lao PDR has been a member since 1975, although it has not submitted a concession schedule.

Block and Herrup (1994).

Miller (1996), Zahralddin-Aravena (1997).

Block and Herrup (1994).

Gantz (2003).

Haas (1993).

From the US perspective, a ‘weak’ side agreement on labor and the environment was the result of its failed negotiations. Mexico was of the view that the imposition of labor standards by the agreement was a violation of national sovereignty. See Pomeroy (1995).

The US–Chile FTA was concluded after 14 rounds of negotiations since 2000.

Salazar (2005).

Chia and Pangestu (2005).

Brunei Darussalam decided to join the P3 negotiations in April 2005, which led to the enlargement of negotiations into P4. The Trans-Pacific Strategic Economic Partnership (TPSEP) was signed by the P4 countries in July 2005 and came into force in May 2006.

Kolsky Lewis (2011).

The TPSEP has an accession clause (Article 20.6) and is open to any APEC member and other states.

If the expansion of TPSEP were to be pursued, the US would have been a party to be admitted by P4 countries, and the US can approve other countries’ participation only after its accession. If a new agreement were to be pursued, all eight parties would be the negotiating parties on an equal footing.

USTR website: https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2009/december/tpp-statements-and-actions-date.

https://ustr.gov/sites/default/files/uploads/agreements/morocco/pdfs/TPP%20Congressional%20Notification.pdf.

James (2010).

Gao (2012).

Hamanaka (2014b).

One possible difference can be found regarding the establishment of a working group for APEC and non-APEC parties. See Footnote 33 for details.

Owing to the stipulation in para 3(a), the establishment of a working group for non-APEC members requires agreement by all parties (the ‘no objection within seven days’ rule does not seem to be applicable to the establishment of working group for non-APEC members).

Eighty-five per cent of the combined gross domestic product of the original signatories in 2013 is necessary for the Agreement to come into force. Only the US and Japan have a GDP share higher than 15%.

Elms and Lim (2012).

Baldwin, R., & Low, P. (2009). Introduction. In R. Baldwin & P. Low (Eds.), Multilateralizing regionalism. Cambridge University Press, World Trade Organization.

Block, J. G., & Herrup, A. R. (1994). Addressing environmental concerns regarding Chilean Accession to NAFTA. 10 Connecticut Journal of International Law, 221.

Capie, D., & Evans, P. (2002). The Asia-Pacific security Lexicon. Singapore: Institute of Southeast Asian Studies.CrossRef

Chia, S. Y., & Pangestu, M. (2005). Regionalism and bilateralism in ASEAN. In S. K. Jayasuriya (Ed.), Trade policy reforms and development, Edward Elgar.

Elms, D., & Lim, C. L. (2012). An overview and snapshot of the TPP negotiations. In C. L. Lim, D. Elms & P. Low (Eds), The trans-Pacific partnership, a quest for a twenty-first-century trade agreement. Cambridge: Cambridge University Press.

Gantz, D. A. (2003). Evolution of FTA investment provisions: From NAFTA to the United States-Chile free trade agreement. American University International Law Review, 19, 679.

Gao, H. (2012). From the P4 to the TPP: Transplantation or transformation? In C.L. Lim, D. Elms, & P. Low (Eds.), The trans-Pacific Partnership, a quest for a twenty-first-century trade agreement. Cambridge: Cambridge University Press.

Haas, D.A. (1993). ‘Out of Others’ Shadows: ASEAN moves toward greater regional cooperation in the face of the EC and NAFTA. American University Journal of International Law & Policy, 9, 809.

Hamanaka, S. (2012). Unexpected usage of enabling clause? Proliferation of bilateral trade agreements in Asia. Journal of World Trade, 46.

Hamanaka, S. (2014a). Finding non-notified trade agreements to the WTO: Preliminary investigation in Asia-Pacific. Journal of World Trade, 48, 1077.

Hamanaka, S. (2014b). TPP versus RCEP: Control of membership and agenda setting. Journal of East Asian Economic Integration, 18, 2.CrossRef

James, S. (2010). Is the trans-Pacific partnership worth the fuss? Free Trade Bulletin, 40 (Washington, DC: Cato Institute 2010) 1.

Kelley, J. (2004). International actors on the domestic scene: Membership conditionality and socialization by international institutions. International Organization, 425. doi:10.1017/S0020818304583017.

Krauss, E., & Pempel, T. J. (2007). Beyond bilateralism: US–Japan relations in the New Asia-Pacific. Stanford: Stanford University Press.

Miller, M. A. (1996). Will the circle be unbroken-Chile’s accession to the NAFTA and the fast-track debate. Valparaiso University Law Review, 31, 153.

Ruggie, J. G. (1992). Multilateralism: The anatomy of an institution. International Organization, 46, 561.CrossRef

Salazar, J. (2005). A Chile–New Zealand CEP? The concept of coopetition and the politics of trade liberalization. Lecture at Political Science and International Relations Programme of Victoria University of Wellington. 15 March.

Zahralddin-Aravena, R. X. (1997). Chilean accession to NAFTA: US failure and Chilean success. North Carolina Journal of International Law and Commercial Regulation, 23, 53.

Titel: Accession to TPP: Veto Power and “Opt-Out” Option
verfasst von: Shintaro Hamanaka
Verlag: Springer Singapore
Buch: Paradigm Shift in International Economic Law Rule-Making
Print ISBN: 978-981-10-6730-3

Electronic ISBN: 978-981-10-6731-0

Copyright-Jahr: 2017
DOI: https://doi.org/10.1007/978-981-10-6731-0_25

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