BREAKING NEWS – USTR RELEASES TEXT OF TRANS-PACIFIC PARTNERSHIP (“TPP”) AGREEMENT
In a notice to be published in the Federal Register on November 9, 2015, the President announced that he has notified the Congress of his intention to sign the recently negotiated Trans-Pacific Partnership Agreement (“TPP”). This follows closely on the heels of a November 5thpublic release of a “Subject to Legal Review” text of the TPP.
The TPP is an unprecedented free trade agreement reached by negotiators of twelve countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam) after over five years of negotiations. The TPP, which impacts approximately 40% of global trade, brings with it the elimination or reduction of duties on goods from the member countries that satisfy specified rules of origin and other technical requirements. The TPP follows a NAFTA-like approach with special rules applying to certain sectors, including textiles and automotive.
The TPP is subject to Congressional review under “fast track” procedures which, subject to certain conditions, limits Congress to an up or down vote (i.e., not subject to amendment). The fast track legislation, however, provides for a number of required steps before implementation.
Such steps include (among others): notification by the President to Congress and the public of his intent to sign the Agreement at least 90 days in advance of signature; making the Agreement text publicly available at least 60 days before Presidential signature; submission to Congress of a list of required U.S. legal changes within 60 days after entering into the Agreement; submission to Congress of a copy of the final legal text of the agreement at least 30 days before submitting the implementing legislation; and passage by Congress of the implementing legislation into law. The Presidential announcement has started the 90-day clock on the first step forward.
We are available to work with your company (be it in the form of providing additional analyses, workshops or otherwise) to prepare for and maximize the potential duty-savings opportunities created under the TPP. Please do not hesitate to contact Arthur Bodek ([email protected]) or any other members of our firm.