TPP Country Representatives Looking to Melbourne for Answers

UNCLAS HANOI 001406 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETRD ECON ECIN EINV PREL VM SUBJECT: TPP Country Representatives Looking to Melbourne for Answers ¶1. (SBU) Summary: At a December 21 dinner hosted by the Ambassador, Trans-Pacific Partnership (TPP) country representatives inquired about the goals and objectives of the United States at the upcoming Melbourne meeting March 15-19, including the shape and content of the agreement to make it a 21st century agreement, timing, and rules for new members. The group agreed that the first round of negotiations in Melbourne will be key to answering some of these questions as well as setting the stage for future talks. Vietnam's Vice Trade Minister said Vietnam still must decide whether it wants to be a full member of TPP. As the Melbourne meeting approaches, Post would appreciate any additional information Washington can provide on the TPP process and next steps. End summary. ¶2. (SBU) Ambassador hosted a dinner on December 21 for Trans-Pacific Partnership (TPP) Agreement country representatives, including Ambassadors/Charges from Australia, New Zealand, Brunei, Chile, and Singapore (Peru is not represented in Vietnam). Vietnam officials included Ministry of Industry and Trade (MOIT) Vice-Minister Nguyen Cam Tu (Vietnam's official lead TPP negotiator),MOIT Director General for Multilateral Trade Tran Quoc Khanh, and Ministry of Foreign Affairs (MFA) Director General for Multilateral Economic Policy Nguyen Nguyet Nga. TPP Members Looking for Clarity at Melbourne Meeting ¶3. (SBU) Ambassador informed the guests that the United States Trade Representative (USTR) Kirk had formally notified Congress of the Administration's intent to enter into TPP negotiations on December 14, and briefed the group on USTR's on-going consultations with Congress and stakeholders. The Australian Charge said Australia wanted to support USTR Kirk in his efforts to promote TPP, noting that the TPP Ambassadors in Washington were considering writing a letter to Kirk (that he could use with others) if that would be helpful. MOIT Director General Khanh commented that it was not an easy time to promote new trade agreements in the United States given record high unemployment; USG officials had to explain how this agreement would translate into new jobs. Several Ambassadors observed that officials needed to make the same case for TPP in their own capitals. ¶4. (SBU) The group agreed that the March 15-19 meeting in Melbourne would be important for setting the stage for future talks. MOIT Director General Khanh said the GVN considers the March meeting to be a "scoping" exercise; the Singapore Ambassador concurred, calling it a "pathfinding" meeting. The attendees agreed there were still many unanswered questions about TPP, including what a "21st century agreement" would include, how it would relate to existing trade agreements, and what was a realistic timeframe for negotiations. Most of the group emphasized that one of the most important outstanding issues - and a key task for negotiators in March - was determining the rules for new members. (Note: The Australian and New Zealand representatives asked econoff separately what U.S. policy was on additional TPP members, noting they had heard the U.S. may be open to the idea. End note.) The officials said they expected more clarity on all of these questions after the Melbourne meeting. Vietnam Still on the Fence ¶5. (SBU) MOIT Vice Minister Tu underscored that the most important decision facing Vietnam was whether it wanted to be a full member in the TPP, claiming there may not be enough time to close the gap between Vietnam and the other members before negotiations concluded. MFA Director General Nga added that Vietnam would need "special accommodation," and asked if other members were willing to help as they had when Vietnam acceded to the World Trade Organization. MOIT Director General Khanh offered that he thought there would not be a lower standard for Vietnam in the TPP; however, he expected there would be a significant chapter on technical assistance and additional time for Vietnam to phase in certain provisions. The Ambassador urged Vietnam to enter the negotiations with an open and flexible approach. ¶6. (SBU) Comment and action request: This dinner meeting confirmed there is real enthusiasm about TPP, but also many outstanding questions. It was clear that the participants see the US as the major driver of the TPP and expect us to play a leading role in setting out our expectations and ambitions for the agreement. Participants also want to continue to meet informally to exchange information and gossip as the process moves ahead and agreed to meet again the first week in March just prior to the Melbourne meeting. USTR and State's regular updates have been key to helping us answer the many TPP-related inquiries we receive. As the Melbourne meeting approaches, we would appreciate any additional information Washington can provide, i.e., the composition and organization of our TPP negotiating team, the interagency process in Washington, updates on USTR's ongoing consultations with Congress and stakeholders, and next steps. Michalak