Republican gains in mid-term polls could aid Obama's Asian trade deal
Major Republican gains in today's polls could aid Obama in getting fast-track authority for his struggling Trans-Pacific Partnership
Big Republican gains in today's mid-term elections would be a blow to much of US President Barack Obama's agenda, but one item on his to-do list might get a fresh chance to move forward: trade. That could breathe life into Asia-Pacific trade talks essential to his efforts to deepen engagement in the region.
Fast-track legislation was introduced in January but Senate Democratic leader Harry Reid would not allow a vote. Many Democrats fear that opening markets to countries with lower wages will cost American jobs. Republicans tend to be more supportive, seeing more trade as benefiting the economy.
With Republicans favoured to take control of the Senate and expand their House majority in today's elections, trade could become a rare point of agreement between a Republican Congress and the White House.
Yet obstacles would remain.
Many Republicans would hesitate to see a Democratic president make progress on his agenda. Among Democrats, there is widespread opposition in the House to the Asian pact. Opposition is less strong in the Senate, but it only takes a few lawmakers to use procedural tactics and try to block the deal.
With or without fast track, there is no guarantee that the TPP nations can reach an agreement. The main players, the US and Japan, appear at loggerheads over access to Japan's heavily protected agriculture market.
When TPP trade ministers met in Australia in late October, they announced progress in negotiations but no deal ahead of the November 10-11 Asia-Pacific Economic Cooperation summit, where participants will want to signal the end is in sight.
Having a clear definition of exactly what was in the pact would help trade legislation in Washington, said Jeffrey Schott at the Peterson Institute for International Economics.
"The large majority of the Republican party would support this and it would be lobbied hard by the business community to get the legislation through."
But Lori Wallach of the advocacy group Public Citizen said US negotiators had not broached in the TPP negotiations the issue of currency manipulation, despite demands from many US lawmakers that it be included. Liberal-leaning groups also fear it will lead to internet censorship and grant more power to corporations, adding to Democrats' reluctance to support it.
The ambitious talks seek to cut tariffs and set broader rules on issues such as intellectual property and state-owned enterprises. The other participants are Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
World Trade Centre opens for business
The resurrected World Trade Centre in New York is opening for business, 13 years after the 9/11 terrorist attacks. Some of publishing giant Conde Nast's staffers began working at 1 World Trade Centre yesterday.
The 104-storey, US$3.9 billion skyscraper is the centrepiece of the 6.5-hectare site where the decimated twin towers once stood and where more than 2,700 people died on September 11, 2001.
The Port Authority of New York and New Jersey owns the site. Executive Director Patrick Foye said the building makes the skyline "whole again".
