September 7, 2011
Business Presses for Action on State-Owned Enterprises in Trans-Pacific Trade Talks
USCIB has joined with three other business groups in urging the U.S. government to propose strong disciplines on state-owned enterprises in the context of the Trans-Pacific Partnership (TPP) negotiations.
In a letter to Michael Froman, the deputy national security advisor for international economic affairs, and Demetrios Marantis, deputy U.S. trade representative, the groups wrote:
“On the eve of the Chicago Round, the stakes in the TPP could not be higher. A successfully concluded TPP that sets the benchmark for 21st century bilateral, regional and multilateral trade and investment disciplines will go a long way towards establishing new rules of the road that would help U.S. companies and workers overcome the serious disadvantages that they face in competition with SOEs as commercial actors.
“We are concerned, however, that the final text tabled by the United States in the negotiations may fall short of the robust and detailed disciplines that are needed to ensure that U.S. exporters, investors, and American workers are able to compete on a level playing field against SOEs and the government support which they receive through myriad preferential policies. For our organizations, the TPP does not represent an incremental opportunity; it is an opportunity for an ambitious and game-changing approach worthy of the 21st century model it is intended to represent.
“As a result, we strongly encourage a final text be tabled that prescribes a detailed and comprehensive code of conduct to TPP negotiating partners. This code of conduct should include disciplines and obligations that can effectively deter governments from employing policy mechanisms that advantage SOEs in the marketplace when in competition with private actors.”
Other groups signing the letter were the National Foreign Trade Council, Coalition of Service Industries and U.S. Chamber of Commerce.
Staff contact: Shaun Donnelly, sdonnelly@uscib.org
Business letter on Trans-Pacific Partnership
From the President: Dealing With State-Owned Enterprises (Winter 2010-2011)
More on USCIB’s Trade and Investment Committee
