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7/22/15, 6:52 AMOutlines of TPP | United States Trade Representative

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Outlines of TPP

Below are the outlines of the TPP agreement as agreed to by the TPP members in Honolulu, Hawaii on November 12, 2011.

ENHANCING TRADE AND INVESTMENT, SUPPORTING JOBS, ECONOMIC GROWTH AND DEVELOPMENT: ENHANCING TRADE AND INVESTMENT, SUPPORTING JOBS, ECONOMIC GROWTH AND DEVELOPMENT:

OUTLINES OF THE TRANS-PACIFIC PARTNERSHIP AGREEMENTOUTLINES OF THE TRANS-PACIFIC PARTNERSHIP AGREEMENT

On November 12, 2011, the Leaders of the nine Trans-Pacific Partnership countries – Australia, Brunei Darussalam, Chile,

Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States – announced the achievement of the broad outlines of an

ambitious, 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner

countries, promote innovation, economic growth and development, and support the creation and retention of jobs.

The agreement’s broad framework is as follows:

Key FeaturesKey Features

In reporting to Leaders on the achievement of the broad outlines of an agreement, the Trade Ministers identified five defining

features that will make TPP a landmark, 21st-century trade agreement, setting a new standard for global trade and incorporating

next-generation issues that will boost the competitiveness of TPP countries in the global economy.

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Trans-Pacific Partnership (tpp)



o Comprehensive market access: to eliminate tariffs and other barriers to goods and services trade and investment, so as to

create new opportunities for our workers and businesses and immediate benefits for our consumers.

o Fully regional agreement: to facilitate the development of production and supply chains among TPP members, supporting

our goal of creating jobs, raising living standards, improving welfare and promoting sustainable growth in our countries.

o Cross-cutting trade issues: to build on work being done in APEC and other fora by incorporating in TPP four new, cross-

cutting issues. These are:

- Regulatory coherence. Commitments will promote trade between the countries by making trade among them more

seamless and efficient.

- Competitiveness and Business Facilitation. Commitments will enhance the domestic and regional competitiveness of

each TPP country’s economy and promote economic integration and jobs in the region, including through the

development of regional production and supply chains.

- Small- and Medium-Sized Enterprises. Commitments will address concerns small- and medium-sized enterprises have

raised about the difficulty in understanding and using trade agreements, encouraging small- and medium-sized

enterprises to trade internationally.

- Development. Comprehensive and robust market liberalization, improvements in trade and investment enhancing

disciplines, and other commitments, including a mechanism to help all TPP countries to effectively implement the

Agreement and fully realize its benefits, will serve to strengthen institutions important for economic development and

governance and thereby contribute significantly to advancing TPP countries’ respective economic development

priorities.

o New trade challenges: to promote trade and investment in innovative products and services, including related to the digital

economy and green technologies, and to ensure a competitive business environment across the TPP region.

o Living agreement: to enable the updating of the agreement as appropriate to address trade issues that emerge in the future

as well as new issues that arise with the expansion of the agreement to include new countries.

ScopeScope

• The agreement is being negotiated as a single undertaking that covers all key trade and trade-related areas. In addition to

updating traditional approaches to issues covered by previous free trade agreements (FTAs), the TPP includes new and

emerging trade issues and cross-cutting issues.

• More than twenty negotiating groups have met over nine rounds to develop the legal texts of the agreement and the

specific market access commitments the TPP countries will make to open their markets to each others’ goods, services, and

government procurement.



• All of the nine countries also have agreed to adopt high standards in order to ensure that the benefits and obligations of the

agreement are fully shared. They also have agreed on the need to appropriately address sensitivities and the unique

challenges faced by developing country members, including through trade capacity building, technical assistance, and staging

of commitments as appropriate.

• A set of new, cross-cutting commitments are intended to reduce costs, enable the development of a more seamless trade

flows and trade networks between TPP members, encourage the participation of small- and medium-sized enterprises in

international trade, and promote economic growth and higher living standards.

• The negotiating teams have proposed new commitments on cross-cutting issues in traditional chapters and also have made

substantial progress toward agreement on separate, stand-alone commitments to address these issues.

Legal TextsLegal Texts

• The negotiating groups have developed consolidated legal text in virtually all negotiating groups. In some areas, text is

almost complete; in others, further work is needed to finalize text on specific issues. The texts contain brackets to indicate

where differences remain.

• The legal texts will cover all aspects of commercial relations among the TPP countries. The following are the issues under

negotiation and a summary of progress.

o Competition. The competition text will promote a competitive business environment, protect consumers, and ensure a

level playing field for TPP companies. Negotiators have made significant progress on the text, which includes

commitments on the establishment and maintenance of competition laws and authorities, procedural fairness in

competition law enforcement, transparency, consumer protection, private rights of action and technical cooperation.

o Cooperation and Capacity Building. The TPP countries agree that capacity building and other forms of cooperation are

critical both during the negotiations and post-conclusion to support TPP countries’ ability to implement and take

advantage of the agreement. They recognize that capacity building activities can be an effective tool in helping to

address specific needs of developing countries in meeting the high standards the TPP countries have agreed to seek. In

this spirit, several cooperation and capacity building activities have already been implemented in response to specific

requests and additional activities are being planned to assist developing countries in achieving the objectives of the

agreement. The TPP countries also are discussing specific text that will establish a demand-driven and flexible

institutional mechanism to effectively facilitate and cooperation and capacity building assistance after the TPP is

implemented.

o Cross-Border Services. TPP countries have agreed on most of the core elements of the cross-border services text. This

consensus provides the basis for securing fair, open, and transparent markets for services trade, including services

supplied electronically and by small- and medium-sized enterprises, while preserving the right of governments to

regulate in the public interest.



o Customs. TPP negotiators have reached agreement on key elements of the customs text as well as on the fundamental

importance of establishing customs procedures that are predictable, transparent and that expedite and facilitate trade,

which will help link TPP firms into regional production and supply chains. The text will ensure that goods are released

from customs control as quickly as possible, while preserving the ability of customs authorities to strictly enforce

customs laws and regulations. TPP countries also have agreed on the importance of close cooperation between

authorities to ensure the effective implementation and operation of the agreement as well as other customs matters.

o E-Commerce. The e-commerce text will enhance the viability of the digital economy by ensuring that impediments to

both consumer and businesses embracing this medium of trade are addressed. Negotiators have made encouraging

progress, including on provisions addressing customs duties in the digital environment, authentication of electronic

transactions, and consumer protection. Additional proposals on information flows and treatment of digital products are

under discussion.

o Environment. A meaningful outcome on environment will ensure that the agreement appropriately addresses

important trade and environment challenges and enhances the mutual supportiveness of trade and environment. The

TPP countries share the view that the environment text should include effective provisions on trade-related issues that

would help to reinforce environmental protection and are discussing an effective institutional arrangement to oversee

implementation and a specific cooperation framework for addressing capacity building needs. They also are discussing

proposals on new issues, such as marine fisheries and other conservation issues, biodiversity, invasive alien species,

climate change, and environmental goods and services.

o Financial Services. The text related to investment in financial institutions and cross-border trade in financial services

will improve transparency, non-discrimination, fair treatment of new financial services, and investment protections and

an effective dispute settlement remedy for those protections. These commitments will create market-opening

opportunities, benefit businesses and consumers of financial products, and at the same time protect the right of financial

regulators to take action to ensure the integrity and stability of financial markets, including in the event of a financial

crisis.

o Government Procurement. The text of the Government Procurement Chapter will ensure that procurement covered

under the chapter is conducted in a fair, transparent, and non-discriminatory manner. The TPP negotiators have agreed

on the basic principles and procedures for conducting procurement under the chapter, and are developing the specific

obligations. The TPP partners are seeking comparable coverage of procurement by all the countries, while recognizing

the need to facilitate the opening of the procurement markets of developing countries through the use of transitional

measures.

o Intellectual Property. TPP countries have agreed to reinforce and develop existing World Trade Organization

Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) rights and obligations to ensure an effective and

balanced approach to intellectual property rights among the TPP countries. Proposals are under discussion on many

forms of intellectual property, including trademarks, geographical indications, copyright and related rights, patents,

trade secrets, data required for the approval of certain regulated products, as well as intellectual property enforcement

and genetic resources and traditional knowledge. TPP countries have agreed to reflect in the text a shared commitment

to the Doha Declaration on TRIPS and Public Health.



o Investment. The investment text will provide substantive legal protections for investors and investments of each TPP

country in the other TPP countries, including ongoing negotiations on provisions to ensure non-discrimination, a

minimum standard of treatment, rules on expropriation, and prohibitions on specified performance requirements that

distort trade and investment. The investment text will include provisions for expeditious, fair, and transparent investor-

State dispute settlement subject to appropriate safeguards, with discussions continuing on scope and coverage. The

investment text will protect the rights of the TPP countries to regulate in the public interest.

o Labor. TPP countries are discussing elements for a labor chapter that include commitments on labor rights protection

and mechanisms to ensure cooperation, coordination, and dialogue on labor issues of mutual concern. They agree on the

importance of coordination to address the challenges of the 21st-century workforce through bilateral and regional

cooperation on workplace practices to enhance workers’ well-being and employability, and to promote human capital

development and high-performance workplaces.

o Legal Issues. TPP countries have made substantial progress on provisions concerning the administration of the

agreement, including clear and effective rules for resolving disputes and are discussing some of the specific issues

relating to the process. TPP countries also have made progress on exceptions from agreement obligations and on

disciplines addressing transparency in the development of laws, regulations, and other rules. In addition, they are

discussing proposals related to good governance and to procedural fairness issues in specific areas.

o Market Access for Goods. The TPP countries have agreed to establish principles and obligations related to trade in

goods for all TPP countries that ensure that the market access that they provide to each other is ambitious, balanced,

and transparent. The text on trade in goods addresses tariff elimination among the partners, including significant

commitments beyond the partners’ current WTO obligations, as well as elimination of non-tariff measures that can

serve as trade barriers. The TPP partners are considering proposals related to import and export licensing and

remanufactured goods. Additional provisions related to agricultural export competition and food security also are under

discussion.

o Rules of Origin. TPP countries have agreed to seek a common set of rules of origin to determine whether a product

originates in the TPP region. They also have agreed that TPP rules of origin will be objective, transparent and

predictable and are discussing approaches regarding the ability to cumulate or use materials from within the free trade

area in order to make a claim that a product is originating. In addition, the TPP countries are discussing the proposals for

a system for verification of preference claims that is simple, efficient and effective.

o Sanitary and Phytosanitary Standards (SPS). To enhance animal and plant health and food safety and facilitate trade

among the TPP countries, the nine countries have agreed to reinforce and build upon existing rights and obligations

under the World Trade Organization Agreement on the Application of Sanitary and Phytosanitary Measures. The SPS

text will contain a series of new commitments on science, transparency, regionalization, cooperation, and equivalence.

In addition, negotiators have agreed to consider a series of new bilateral and multilateral cooperative proposals,

including import checks and verification.

o Technical Barriers to Trade (TBT). The TBT text will reinforce and build upon existing rights and obligations under the

World Trade Organization Agreement on Technical Barriers, which will facilitate trade among the TPP countries and

help our regulators protect health, safety, and the environment and achieve other legitimate policy objectives. The text



will include commitments on compliance periods, conformity assessment procedures, international standards,

institutional mechanisms, and transparency. The TPP countries also are discussing disciplines on conformity assessment

procedures, regulatory cooperation, trade facilitation, transparency, and other issues, as well as proposals that have

been tabled covering specific sectors.

o Telecommunications. The telecommunications text will promote competitive access for telecommunications providers

in TPP markets, which will benefit consumers and help businesses in TPP markets become more competitive. In addition

to broad agreement on the need for reasonable network access for suppliers through interconnection and access to

physical facilities, TPP countries are close to consensus on a broad range of provisions enhancing the transparency of

the regulatory process, and ensuring rights of appeal of decisions. Additional proposals have been put forward on choice

of technology and addressing the high cost of international mobile roaming.

o Temporary Entry. TPP countries have substantially concluded the general provisions of the chapter, which are

designed to promote transparency and efficiency in the processing of applications for temporary entry, and ongoing

technical cooperation between TPP authorities. Specific obligations related to individual categories of business person

are under discussion.

o Textiles and Apparel. In addition to market access on textiles and apparel, the TPP countries also are discussing a

series of related disciplines, such as customs cooperation and enforcement procedures, rules of origin and a special

safeguard.

o Trade Remedies. TPP countries have agreed to affirm their WTO rights and obligations and are considering new

proposals, including obligations that would build upon these existing rights and obligations in the areas of transparency

and procedural due process. Proposals also have been put forward relating to a transitional regional safeguard

mechanism.

Tariff Schedules and Other Market-Opening PackagesTariff Schedules and Other Market-Opening Packages

• The TPP tariff schedule will cover all goods, representing some 11,000 tariff lines. The nine countries also are developing

common TPP rules of origin, and are weighing proposals now for how to do this most effectively and simply.

• Services and investment packages will cover all service sectors. To ensure the high-standard outcome the nine countries are

seeking, the TPP countries are negotiating on a “negative list” basis, which presumes comprehensive coverage but allows

countries to negotiate specific exceptions to commitments in specific service sectors.

• Government procurement packages are being negotiated with each country seeking to broaden coverage to ensure the

maximum access to each others’ government procurement markets, while recognizing each others’ sensitivities.

Next StepsNext Steps

• Leaders of the nine TPP countries have instructed negotiators to meet in early December, and at that time to schedule

additional negotiating rounds.



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7/22/15, 6:55 AMTrans-Pacific Partnership: Summary of U.S. Objectives | United States Trade Representative

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Trans-Pacific Partnership: Summary of U.S. Objectives

The United States is participating in negotiations of the Trans-Pacific Partnership (TPP) Agreement with 11 other Asia-Pacific

countries (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam) – a

trade agreement that will open markets, set high-standard trade rules, and address 21st-century issues in the global economy. By

doing so, TPP will promote jobs and growth in the United States and across the Asia-Pacific region.

The Obama Administration is pursuing TPP to unlock opportunities for American manufacturers, workers, service providers,

farmers, and ranchers – to support job creation and wage growth. We are working hard to ensure that TPP will be a

comprehensive deal, providing new and meaningful market access for goods and services; strong and enforceable labor standards

and environmental commitments; groundbreaking new rules designed to ensure fair competition between state-owned

enterprises (SOEs) and private companies; commitments that will improve the transparency and consistency of the regulatory

environment to make it easier for small- and medium-sized businesses to operate across the region; a robust intellectual property

(IP) rights framework to promote innovation, while supporting access to innovative and generic medicines and an open Internet;

and obligations that will promote a thriving digital economy, including new rules to ensure the free flow of data.

This document describes the Administration’s goals and objectives for TPP, and presents the main elements of each chapter from

the United States’ perspective. Negotiations toward a TPP Agreement are ongoing, and many of the elements detailed below are

not settled. These are our objectives; there is still work to be done to achieve them. This document lays out the Administration’s

vision, which the Office of the U.S. Trade Representative is advancing, of harnessing trade as a tool for economic growth and

supporting jobs, and building opportunity for Americans in the context of an agreement that will benefit all TPP countries.

We are committed to providing the public information on what we are working to achieve through trade negotiations, and we will

continue to share this information through the press, social media, and at www.ustr.gov (http://www.ustr.gov) as we move forward

in the TPP negotiations.

TRADE IN GOODSTRADE IN GOODS

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The United States ships more than $1.9 billion in goods to TPP countries every day. In today’s highly competitive global

marketplace, even small increases in a product’s cost due to tariffs or non-tariff barriers can mean the difference between success

and failure for a business. That is why the United States is working to negotiate in TPP comprehensive and preferential access

across an expansive duty-free trading region for the industrial goods, food and agriculture products, and textiles, which will allow

our exporters to develop and expand their participation in the value chains of the fastest-growing economies in the world.

The United States exported more than $622.5 billion of manufactured products to TPP countries in 2013. With the elimination of

TPP countries’ tariffs on manufactured products, including innovative and high technology products, such as industrial and

electrical machinery, precision and scientific instruments, and chemicals and plastics, U.S. products will compete on a more level

playing field with goods from TPP countries’ other free trade agreement (FTA) partners – including China, India, and the EU. As just

one example, certain U.S. auto parts currently face a 27-percent tariff entering Vietnam. Other countries that have an FTA with

Vietnam, such as China, Thailand, and Indonesia, export their auto parts to Vietnam duty free. By eliminating duties U.S. auto parts

companies face, TPP would help boost their competitiveness in the Vietnamese market.

Twenty percent of U.S. farm income comes from agricultural exports and those exports support rural communities. In fact, U.S.

food and agricultural exports to the world reached an all-time high in 2013 of over $148 billion. Of that total, we exported more

than $58 billion to TPP countries – a figure that would increase as a result of tariff elimination under TPP. As just one example:

U.S. poultry currently faces a 40-percent tariff in Malaysia. U.S. poultry would become more affordable in Malaysia under a TPP

agreement that reduces these duties to zero.

Specifically, in the TPP we are seeking:

Elimination of tariffs and commercially-meaningful market access for U.S. products exported to TPP countries; and

Provisions that address longstanding non-tariff barriers, including import licensing requirements and other restrictions.

TEXTILESTEXTILES

U.S. textile and apparel manufacturers sold more than $10 billion worth of products to TPP countries in 2013, an increase of 5.4

percent from the previous year. Many U.S. yarns, fabrics, and apparel currently face tariffs as high as 20 percent upon entering

some TPP countries. Our goal in the TPP negotiations is to remove tariff and non-tariff barriers to textile and apparel exports to

enhance the competitiveness of our producers in the Asia-Pacific region.


Elimination of tariffs on textile and apparel exports to TPP countries;

A “yarn forward” rule of origin, which requires that textile and apparel products be made using U.S. or other TPP country yarns

and fabrics to qualify for the benefits of the agreement, so as to ensure that non-qualifying textiles and apparel from non-TPP

countries do not enjoy the benefits reserved for TPP countries;

A carefully crafted “short supply” list, which would allow fabrics, yarns, and fibers that are not commercially available in the

United States or other TPP countries to be sourced from non-TPP countries and used in the production of apparel in the TPP

region without losing duty preference;



Strict enforcement provisions and customs cooperation commitments that will provide for verification of claims of origin or

preferential treatment, and denial of preferential treatment or entry for suspect goods if claims cannot be verified; and

A textile specific safeguard mechanism that will allow the United States and other TPP countries to re-impose tariffs on certain

goods if a surge in imports causes or threatens to cause serious damage to domestic producers.

SERVICESSERVICES

Services industries account for four out of five U.S. jobs and also represent a significant and growing share of jobs in other TPP

countries. Securing liberalized and fair access to foreign services markets will help U.S. service suppliers, both small and large,

seeking to do business in TPP markets, thereby, supporting jobs at home.


Liberalizing access for services companies so they receive better or equal treatment to service suppliers from TPP countries’

other FTA partners and face a more level playing field in TPP markets;

Provisions that would enable service suppliers to supply services without establishing an office in every TPP country;

New or enhanced obligations in specific sectors important to promoting trade (e.g., enhanced disciplines for express delivery

services will promote regional supply chains and aid small businesses, which often are highly dependent on express delivery

services for integration into supply chains and distribution networks); and

Commitments to liberalize foreign financial services and insurance markets while protecting a government’s broad flexibility to

regulate, including in the financial sector, and to take the actions necessary to ensure the stability and integrity of a financial

system.

INVESTMENTINVESTMENT

With trade following investment, we are working to ensure that U.S. investors abroad are provided the same kind of opportunities

in other markets that we provide in the United States to foreign investors doing business within our borders. That is why we are

seeking to include in TPP many of the investment obligations that have historically proven to support jobs and economic growth, as

well as new provisions to take on emerging investment issues.


Liberalized access for investment in TPP markets, non-discrimination and the reduction or elimination of other barriers to the

establishment and operation of investments in TPP countries, including prohibitions against unlawful expropriation and

specified performance requirements;

Provisions that will address measures that require TPP investors to favor another country’s domestic technology in order to

benefit SOEs, national champions, or other competitors in that country; and

Procedures for arbitration that will provide basic rule of law protections for U.S. investors operating in foreign markets similar

to those the U.S. already provides to foreign investors operating in the U.S. These procedures would provide strong protections



to ensure that all TPP governments can appropriately regulate in the public interest, including on health, safety, and

environmental protection. This includes an array of safeguards designed to raise the standards around investor-state dispute

settlement, such as by discouraging and dismissing frivolous suits, allowing governments to direct the outcome of arbitral

tribunals in certain areas, making proceedings more open and transparent, and providing for the participation of civil society

organizations and other non-parties.

LABORLABOR

Ensuring respect for worker rights is a core value. That is why in TPP the United States is seeking to build on the strong labor

provisions in the most recent U.S. trade agreements by seeking enforceable rules that protect the rights of freedom of association

and collective bargaining; discourage trade in goods produced by forced labor, including forced child labor; and establish

mechanisms to monitor and address labor concerns.


Requirements to adhere to fundamental labor rights as recognized by the International Labor Organization, as well as

acceptable conditions of work, subject to the same dispute settlement mechanism as other obligations in TPP;

Rules that will ensure that TPP countries do not waive or derogate from labor laws in a manner that affects trade or investment,

including in free trade zones, and that they take initiatives to discourage trade in goods produced by forced labor;

Formation of a consultative mechanism to develop specific steps to address labor concerns when they arise; and

Establishment of a means for the public to raise concerns directly with TPP governments if they believe a TPP country is not

meeting its labor commitments, and requirements that governments consider and respond to those concerns.

ENVIRONMENTENVIRONMENT

Environmental stewardship is a core value and advancing environmental protection and conservation efforts across the Asia-

Pacific region is a key priority for the United States in TPP. In addition to core environment obligations, we are seeking trailblazing,

first-ever conservation proposals to address some of the region’s most urgent environmental challenges.


Strong and enforceable environment obligations, subject to the same dispute settlement mechanism as other obligations in

TPP;

Commitments to effectively enforce domestic environmental laws, including laws that implement multilateral environmental

agreements, and commitments not to waive or derogate from the protections afforded in environmental laws for the purpose of

encouraging trade or investment;

New provisions that will address wildlife trafficking, illegal logging, and illegal fishing practices; and

Establishment of a means for the public to raise concerns directly with TPP governments if they believe a TPP member is not

meeting its environment commitments, and requirements that governments consider and respond to those concerns.



E-COMMERCE AND TELECOMMUNICATIONSE-COMMERCE AND TELECOMMUNICATIONS

In the past five years, the number of Internet users worldwide has ballooned from 2 to 3 billion and will continue to grow. The

increase in Internet use creates significant economic potential, particularly for small businesses. The Obama Administration is

working through TPP to unlock the promise of e-commerce, keep the Internet free and open, promote competitive access for

telecommunications suppliers, and set digital trade rules-of-the-road.


Commitments not to impose customs duties on digital products (e.g., software, music, video, e-books);

Non-discriminatory treatment of digital products transmitted electronically and guarantees that these products will not face

government-sanctioned discrimination based on the nationality or territory in which the product is produced;

Requirements that support a single, global Internet, including ensuring cross-border data flows, consistent with governments’

legitimate interest in regulating for purposes of privacy protection;

Rules against localization requirements that force businesses to place computer infrastructure in each market in which they

seek to operate, rather than allowing them to offer services from network centers that make business sense;

Commitments to provide reasonable network access for telecommunications suppliers through interconnection and access to

physical facilities; and

Provisions promoting choice of technology and competitive alternatives to address the high cost of international mobile

roaming.

COMPETITION POLICY AND STATE-OWNED ENTERPRISESCOMPETITION POLICY AND STATE-OWNED ENTERPRISES

U.S. goals on competition policy and SOEs are grounded in long-standing principles of fair competition, consumer protection, and

transparency. The United States is seeking rules to prohibit anticompetitive business conduct, as well as fraudulent and deceptive

commercial activities that harm consumers. We are also pursuing pioneering rules to ensure that private sector businesses and

workers are able to compete on fair terms with SOEs, especially when such SOEs receive significant government backing to engage

in commercial activity.


Basic rules for procedural fairness on competition law enforcement;

Commitments ensuring SOEs act in accordance with commercial considerations and compete fairly, without undue advantages

from the governments that own them, while allowing governments to provide support to SOEs that provide public services

domestically; and

Rules that will provide transparency with respect to the nature of government control over and support for SOEs.

SMALL AND MEDIUM-SIZED ENTERPRISESSMALL AND MEDIUM-SIZED ENTERPRISES



Small- and medium-sized enterprises (SMEs) are the backbone of the U.S. economy and are key contributors to economic growth in

other TPP economies as well. The United States’ 28 million SMEs account for nearly two-thirds of net new private sector jobs in

recent decades. SMEs that export tend to grow even faster, create more jobs, and pay higher wages than similar businesses that do

not trade internationally. We are seeking through this agreement to provide SMEs the tools they need to compete across TPP

markets. TPP will benefit SMEs by eliminating tariff and non-tariff barriers, streamlining customs procedures, strengthening

intellectual property protection, promoting e-commerce, and developing more efficient and transparent regulatory regimes. In

addition, TPP will include a first-ever chapter focusing on issues that create particular challenges for SMEs.


Commitments to provide access to information on utilizing FTAs – a problem that SMEs have identified as a disproportionate

challenge for them; and

Establishment of a regular review of how TPP is working for SMEs.

INTELLECTUAL PROPERTY RIGHTSINTELLECTUAL PROPERTY RIGHTS

As the world’s most innovative economy, strong and effective protection and enforcement of IP rights is critical to U.S. economic

growth and American jobs. Nearly 40 million American jobs are directly or indirectly attributable to “IP-intensive” industries.

These jobs pay higher wages to their workers, and these industries drive approximately 60 percent of U.S. merchandise exports

and a large share of services exports. In TPP, we are working to advance strong, state-of-the-art, and balanced rules that will

protect and promote U.S. exports of IP-intensive products and services throughout the Asia-Pacific region for the benefit of

producers and consumers of those goods and services in all TPP countries. The provisions that the United States is seeking –

guided by the careful balance achieved in existing U.S. law – will promote an open, innovative, and technologically-advanced Asia-

Pacific region, accelerating invention and creation of new products and industries across TPP countries, while at the same time

ensuring outcomes that enable all TPP countries to draw on the full benefits of scientific, technological, and medical innovation,

and take part in development and enjoyment of new media, and the arts.


Strong protections for patents, trademarks, copyrights, and trade secrets, including safeguards against cyber theft of trade

secrets;

Commitments that obligate countries to seek to achieve balance in their copyright systems by means of, among other

approaches, limitations or exceptions that allow for the use of copyrighted works for purposes such as criticism, comment, news

reporting, teaching, scholarship, and research;

Pharmaceutical IP provisions that promote innovation and the development of new, lifesaving medicines, create opportunities

for robust generic drug competition, and ensure affordable access to medicines, taking into account levels of development

among the TPP countries and their existing laws and international commitments;

New rules that promote transparency and due process with respect to trademarks and geographical indications;

Strong and fair enforcement rules to protect against trademark counterfeiting and copyright piracy, including rules allowing

increased penalties in cases where counterfeit or pirated goods threaten consumer health or safety; and



Internet service provider “safe harbor” provisions, as well as strong and balanced provisions regarding technological protection

measures to foster new business models and legitimate commerce in the digital environment.

TECHNICAL BARRIERS TO TRADE AND TECHNICAL BARRIERS TO TRADE AND SANITARY AND PHYTOSANITARY MEASURESSANITARY AND PHYTOSANITARY MEASURES

Non-tariff trade barriers, such as duplicative testing and unscientific regulations imposed on food and agricultural goods, are

among the biggest challenges facing exporters across the Asia-Pacific region. An effective regulatory program should protect the

public interest – for example in health, safety, and environmental protection – and do so in a manner that is no more trade

restrictive than necessary to achieve the policy goal. The United States is therefore seeking in TPP to strengthen rules intended to

eliminate unwarranted technical barriers to trade (TBT) and build upon WTO commitments in this area, and to ensure that sanitary

and phytosanitary measures (SPS) are developed and implemented in a transparent, science-based manner.


Commitments to enhance transparency, reduce unnecessary testing and certification costs, and promote greater openness in

standards development;

Commitments aimed at adopting common approaches to regulatory matters related to trade in products in key sectors such as

wine and distilled spirits, medical devices, cosmetics, pharmaceuticals, information and communication technology, and food

formulas

New and enforceable rules to ensure that science-based SPS measures are developed and implemented in a transparent,

predictable, and non-discriminatory manner, while at the same time preserving the ability of U.S. and other TPP regulatory

agencies to do what they deem necessary to protect food safety, and plant and animal health; an

Establishment of an on-going mechanism for improved dialogue and cooperation on addressing SPS and TBT issues.

TRANSPARENCY, ANTICORRUPTION AND REGULATORY COHERENCETRANSPARENCY, ANTICORRUPTION AND REGULATORY COHERENCE

Through TPP, we are seeking to make trade across the TPP region more seamless, including by improving the coherence of TPP

regulatory systems, enhancing transparency in policy-making processes, and combatting corruption. These “good government”

reforms also play an important role in ensuring fairness for American firms and workers


Commitments to promote greater transparency, participation, and accountability in the development of regulations and other

government decisions, including by promptly publishing laws, regulations, administrative rulings of general application, and

other procedures that affect trade and investment, and providing opportunities for stakeholder comment on measures before

they are adopted and finalized;

For the first time in a U.S. trade agreement, a chapter on regulatory coherence, including commitments on good regulatory

practices; and

Commitments discouraging corruption and establishing codes of conduct to promote high ethical standards among public

officials.



CUSTOMS, TRADE FACILITATION AND RULES OF ORIGINCUSTOMS, TRADE FACILITATION AND RULES OF ORIGIN

Cutting the red-tape of trade, including by reducing costs and increasing customs efficiencies, will make it cheaper, easier, and

faster for businesses to get their products to market. In TPP, we are looking to facilitate trade across the TPP region; support the

deep integration of U.S. logistics, manufacturing, and other industries in regional supply chains; and reduce costs for U.S. business

by removing onerous and opaque customs barriers.


Commitments that will ensure the quick release of goods through customs, expedited procedures for express shipments,

advance rulings, and transparent and predictable customs regulations;

Strong customs cooperation commitments in order to ensure that TPP countries work together to prevent smuggling, illegal

transshipment, and duty evasion, and to guarantee compliance with trade laws and regulations; and

Strong and common rules of origin to ensure that the benefits of TPP go to the United States and other TPP countries, and also

that TPP promotes the development of supply chains in the region that include companies based in the United States.

GOVERNMENT PROCUREMENTGOVERNMENT PROCUREMENT

Increasing access to government procurement markets in TPP countries, which represent an estimated 5-10 percent of a country’s

economy, will unlock significant opportunities for U.S. and other TPP businesses and workers.


Creation of fair, transparent, predictable, and non-discriminatory rules to govern government procurement in TPP countries;

and

Commitments to liberalize TPP countries’ government procurement markets, with comparable levels of coverage by all TPP

countries, taking into account the particular sensitivities of specific countries.

DEVELOPMENT AND TRADE CAPACITY-BUILDINGDEVELOPMENT AND TRADE CAPACITY-BUILDING

The United States views development as a way to further strengthen the region and lay the groundwork for future economic

opportunities by improving access to economic opportunity for women and low income individuals; incentivizing private-public

partnerships in development activities; and designing sustainable models for economic growth. In addition, the United States sees

trade capacity-building as critical to assist TPP developing countries in implementing the agreement and ensuring they can benefit

from it. In TPP, we plan to include a chapter on cooperation and capacity building and, for the first time in any U.S. trade

agreement, a chapter dedicated specifically to development.


Agreement on cooperative development activities TPP countries could conduct to promote broad-based economic growth and

sustainable development, including public-private partnerships, science and technology cooperation, and other joint

development activities; and



Mechanisms for collaboration and facilitation of capacity-building activities by both TPP government and non-government

representatives, as well as the private sector, in order to help TPP workers and businesses, including SMEs and micro-

enterprises participate in global trade and take advantage of the agreement.

DISPUTE SETTLEMENTDISPUTE SETTLEMENT

When the United States negotiates a trade agreement, we expect our trading partners to abide by the rules and obligations to

which they agree. Under the TPP, countries will first seek to address an issue cooperatively. If they are unable to do so, the Parties

have recourse to an independent tribunal to determine whether a Party has failed to meet its obligations, and ultimately to allow

suspension of benefits if a Party fails to come into compliance. Through the TPP dispute settlement mechanism, we are seeking to

give the American public the confidence that the United States has the means to enforce the strong, high-standard obligations we

are negotiating in this agreement.


Establishment of a fair and transparent dispute settlement mechanism that applies across the agreement; and

Procedures to allow us to settle disputes on matters arising under TPP in a timely and effective manner.

U.S.-JAPAN BILATERAL NEGOTIATIONS ON MOTOR VEHICLE TRADE AND NON-TARIFF MEASURESU.S.-JAPAN BILATERAL NEGOTIATIONS ON MOTOR VEHICLE TRADE AND NON-TARIFF MEASURES

With the participation of Japan, TPP countries account for nearly 40 percent of global GDP and about one-third of all world trade.

Japan is currently the fourth-largest goods trading partners of the United States. The United States exported $65 billion in goods

and an estimated $48 billion in services to Japan in 2013.

Nevertheless, U.S. exporters have faced a broad range of formidable non-tariff measures in Japan’s automotive and other markets.

As a result, prior to Japan joining the TPP negotiations, the United States reached a series of agreements with Japan to address a

range of issues in conjunction with Japan’s participation in TPP. This includes an agreement that U.S. tariffs on motor vehicles will

be phased out in accordance with the longest staging period in the TPP negotiations and will be back-loaded to the maximum

extent.

The United States and Japan also agreed to address non-tariff measures through parallel negotiations to TPP, which were launched

in August 2013.

Specifically, in these negotiations with Japan we are seeking:

Enforceable commitments related to the automotive sector that will address a broad range of non-tariff measures – including

those related to regulatory transparency, standards, certification, financial incentives, and distribution;

Establishment of an accelerated dispute settlement procedure that would apply to the automotive sector that includes a

mechanism to “snap back” tariffs as a remedy, as well as a special motor vehicle safeguard; and

Meaningful outcomes that address cross-cutting and sectoral non-tariff measures, including in the areas of insurance,

transparency, investment, IP rights, standards, government procurement, competition policy, express delivery, and SPS.












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7/22/15, 6:57 AME-Commerce and Telecommunications | United States Trade Representative

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E-Commerce and Telecommunications

In the past five years, the number of Internet users worldwide has ballooned from 2 to 3 billion and will continue to grow. The

increase in Internet use creates significant economic potential, particularly for small businesses. The Obama Administration is

working through TPP to unlock the promise of e-commerce, keep the Internet free and open, promote competitive access for

telecommunications suppliers, and set digital trade rules-of-the-road.


Commitments not to impose customs duties on digital products (e.g., software, music, video, e-books);

Non-discriminatory treatment of digital products transmitted electronically and guarantees that these products will not face

government-sanctioned discrimination based on the nationality or territory in which the product is produced;

Requirements that support a single, global Internet, including ensuring cross-border data flows, consistent with governments’

legitimate interest in regulating for purposes of privacy protection;

Rules against localization requirements that force businesses to place computer infrastructure in each market in which they

seek to operate, rather than allowing them to offer services from network centers that make business sense;

Commitments to provide reasonable network access for telecommunications suppliers through interconnection and access to

physical facilities; and

Provisions promoting choice of technology and competitive alternatives to address the high cost of international mobile

roaming.

For more information on e-commerce and ICT, visit https://ustr.gov/issue-areas/services-investment/telecom-e-commerce

(https://ustr.gov/issue-areas/services-investment/telecom-e-commerce).












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7/22/15, 6:54 AMThe Trans-Pacific Partnership: Economic Benefits | United States Trade Representative

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Saving Money, Growing Trade, Raising Incomes Worldwide: The New WTO Trade Facilitation Agreement (/about-us/policy-offices/press-office/fact-sheets/2013/December/WTO-Trade-Facilitation-Agreement)

Promoting Food Security, Facilitating Competition, Enhancing Exports: New Multilateral Agriculture Provisions at the WTO(/about-us/policy-offices/press-office/fact-sheets/2013/December/New-Multilateral-Agriculture-Provisions-at-the-WTO)

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The Trans-Pacific Partnership: Economic Benefits

On December 10, 2013, the United States and Australia, Brunei Darussalam, Chile, Canada, Japan, Malaysia, Mexico, New Zealand,

Peru, Singapore, and Vietnam, announced substantial progress toward the completion of the Trans Pacific Partnership (TPP)

negotiations. The TPP is the most significant trade negotiation in a generation, and promises significant economic benefits for

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American businesses, workers, farmers, ranchers, and service providers.

According to an analysis supported by the Peterson Institute, a TPP agreement provides global income benefits of an estimated

$223 billion per year, by 2025. Real income benefits to the United States are an estimated $77 billion per year. The TPP could

generate an estimated $305 billion in additional world exports per year, by 2025, including an additional $123.5 billion in U.S.

exports.

Number of Economies: 12 countries in total; United States, Australia, Brunei Darussalam, Chile, Canada, Japan, Malaysia, Mexico,

New Zealand, Peru, Singapore, and Vietnam.

Market Size: 793 million consumers

Combined GDP: $28.1 trillion in 2012 (39.0% of World GDP)

U.S. Benefits from Trade with TPP EconomiesU.S. Benefits from Trade with TPP Economies

U.S.-TPP Trade: $1.8 trillion in goods and private services in 2012 (37% of total)

U.S.-TPP Trade Growth: Goods and services trade up 46% in the last 3 years (2009-2012)

Foreign Direct Investment From TPP Countries in the U.S.: $620.3 billion (23% of FDI stock in the United States)

TPP Foreign Affiliate Employment: 1.4 million Americans

Top U.S. Markets in TPP: Canada ($354 billion), Mexico ($243 billion), Japan ($116 billion)

Jobs Supported by Exports: An estimated 4 million jobs were supported by U.S. goods and services exports to TPP countries in

2012.

U.S. Small and Medium Sized Enterprise Exports in TPP: 97% of all goods exporting companies to TPP countries are SMEs (2011)

SMEs accounted for 29% of the total value of goods exports to TPP countries in 2011

Goods Exports to TPP Countries: $689.1 billion (45% of total U.S. goods exports)

Up 46 % from 2009

Key Export CategoriesKey Export Categories: (Goods 2012): (Goods 2012)

Machinery ($109 billion)

Electrical machinery ($83 billion)

Vehicles ($82 billion)

Mineral fuel (oil) ($58 billion)

Plastics ($33 billion)

Manufacturing Exports: $619 billion

Up 52 % from 2009



Agricultural Exports: $59.2 billion in 2012

Up 36 % from 2009

Top Agricultural Exports: Corn ($5.7 billion)

Pork and Pork Products ($4.3 billion)

Soybeans ($3.6 billion)

Beef and Beef products ($3.3 billion)

Fresh fruit ($3.1 billion)

Services Exports to TPP Countries: $172 billion in 2012

Over 27% of total U.S. services exports

Up 34% from 2009










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7/22/15, 6:54 AMThe Facts on Investor-State Dispute Settlement | United States Trade Representative

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The Facts on Investor-State Dispute Settlement

The Facts on Investor-State Dispute Settlement: Safeguarding the Public Interest and Protecting Investors

As the Obama Administration promotes trade and investment agreements, we work closely with Congress, stakeholders,

and the public to ensure that our trade agenda advances our economic interests and reflects our values. One of our core

values is promoting the rule of law. In our agreements, we want to ensure that the United States and partner countries are

able to regulate in the public interest as they see fit.

We also seek to ensure that Americans investing abroad are provided the same kinds of basic legal protections that we

provide in the United States to both Americans and foreigners doing business within our borders. One element we use to

achieve that goal is investor-state dispute settlement (ISDS). ISDS creates a fair and transparent process, grounded in

established legal principles, for resolving individual investment disputes between investors and states.

There are a lot of myths out there suggesting that ISDS somehow limits our ability – or our partners’ ability – to regulate in

the interest of financial stability, environmental protection, or public health. Some have even suggested that a company

could sue a government just on the grounds that the company isn’t earning as much profit as it wants.

These assertions are false.

The United States promotes provisions in our trade agreements that protect our right to regulate in the public interest

while promoting higher standards in many partner countries in areas ranging from labor and environment to transparency

to anti-corruption.

Over the last 50 years, nearly 3,200 trade and investment agreements among 180 countries have included investment

provisions, and the vast majority of these agreements have included some form of ISDS. The United States entered its first

bilateral investment treaty (BIT) in 1982, and is party to 50 agreements currently in force with ISDS provisions. The

United States has been a leader in developing carefully crafted ISDS provisions to protect the ability of governments to

regulate, to discourage non-meritorious claims, and to ensure a high level of transparency.

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Our approach to ISDS has helped establish higher global standards and strengthen arbitration procedures through clearer

legal rules, enhanced safeguards, and transparency throughout the ISDS process. As a country that plays by the rules and

respects the rule of law, the United States has never lost an ISDS case. In our current negotiations, we are working to

expand upon this approach to ISDS, in ways spelled out in the Model BIT that the Obama Administration released in 2012

following an extensive period of public comment and consultation.

Here are eight facts you should know about ISDS provisions under U.S. trade agreements. These provisions are different –

and stronger – than the provisions in many other investment agreements in which the United States is not a participant.

It’s important to understand how U.S. agreements differ from other agreements that do not meet the same standards.

1. Provide basic legal protections for American companies abroad that are based on the sameProvide basic legal protections for American companies abroad that are based on the same

assurances the United States provides at home. assurances the United States provides at home.

Investment protections are intended to prevent discrimination, repudiation of contracts, and expropriation of property

without due process of law and appropriate compensation. These are the same kinds of protections that are included

in U.S. law. But not all governments protect basic rights at the same level as the United States. Investment protections

are intended to address that fact. Our agreements provide no new substantive rights for foreign investors. Rather,

they provide protections for Americans abroad that are similar to the protections we already provide Americans and

foreigners alike who do business in the United States.

2. Protect the right of governments to regulate in the public interestProtect the right of governments to regulate in the public interest.

The United States wouldn’t negotiate away its right to regulate in the best interest of its citizens,

and we don’t ask other countries to do so either. Our investment rules preserve the right to

regulate to protect public health and safety, the financial sector, the environment, and any other

area where governments seek to regulate. U.S. trade agreements do not require countries to

lower their levels of regulation. In fact, in our trade agreements, we require our partners to

effectively enforce their environmental and labor laws and to take on new commitments to

increase environmental and labor protections.

3. Do not impinge on the ability of federal, state, and local governments to maintain (orDo not impinge on the ability of federal, state, and local governments to maintain (or

adopt) any measure that they deem necessaryadopt) any measure that they deem necessary.

Under our investment provisions, no government can be compelled to change its laws or

regulations, even in cases where a private party has a legitimate claim that its basic rights are

being violated and it is entitled to compensation.

4. Do not expose state or local governments to new liabilities.Do not expose state or local governments to new liabilities.



Under our Constitution and laws, investors frequently exercise their rights in U.S. courts. For

example, in recent years, the U.S. government has defended hundreds of cases in U.S. courts

under the Constitution’s “takings clause,” which requires compensation for expropriations. State

and local governments have likewise defended many such claims. By contrast, the United States

has only been sued 17 times under any U.S. investment agreement and has never once lost a

case. In some instances, we have even received compensation for having had to defend against a

case in the first place. In any disputes arising under our trade agreements, the federal

government assumes the cost of defending the United States, even if they relate to state and

local issues.

5. Provide no legal basis to challenge laws just because they hurt a company’s profits.Provide no legal basis to challenge laws just because they hurt a company’s profits.

Our investment rules do not in any way guarantee a firm’s rights to any profits or to its projected

financial outcomes. Rather, they only provide basic rights – like non-discrimination and

compensation in the event of an expropriation – that are already consistent with U.S. law. Our

investment rules seek to promote standards of fairness, not protect profits.

6. Include strong safeguards to deter frivolous challenges to legitimate public interestInclude strong safeguards to deter frivolous challenges to legitimate public interest

measures. measures.

The United States has proposed additional safeguards that include stricter definitions than are

in most investment agreements of what is required for successful claims, as well as mechanisms

for expedited review and dismissal of frivolous claims, payment of attorneys’ fees, consolidation

of duplicative cases, and transparency. These are some of the strongest safeguards in any of the

nearly 3,200 investment agreements around the world.

7. Ensure fair, unbiased, and transparent legal processes.Ensure fair, unbiased, and transparent legal processes.

The United States is committed to ensuring the highest levels of transparency in all investor-

state proceedings. Investment arbitration hearings under recent U.S. trade and investment

agreements, as well as all key documents submitted to investor-state tribunals and tribunal

decisions, are public. Recent U.S. trade and investment agreements also give NGOs and other

non-parties to a dispute the ability to participate by filing amicus curiae or “friend of the court”



submissions, similar to non-parties’ ability to make filings in U.S. courts.

8. Ensure independent and impartial arbitration.Ensure independent and impartial arbitration.

Investor-state arbitration is designed to provide a fair, neutral platform to resolve disputes. The

arbitration rules applied by tribunals under our agreements require that each arbitrator be

independent and impartial. These rules permit either party in a dispute to request the

disqualification of an arbitrator and the appointment of a new arbitrator if necessary to ensure

the independence and impartiality of all tribunal members.

The United States has been a leader in developing ISDS provisions that protect the ability of governments to regulate,

discourage frivolous claims, and ensure a high level of transparency. Through extensive work with stakeholders,

legislators, and the public we will continue to ensure that the United States remains at the forefront of innovative trade

policy.

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