[At-Large] [APAC-Discuss] Draft Trans Pacific Partnership Agreement on IP

Carlton Samuels carlton.samuels at gmail.com
Mon Sep 3 18:36:16 UTC 2012

Thanks for this Sala.  The gentleman is telling Taiwan 'let not your heart
be troubled' or become too alarmed by the 're-balancing' act; moving from
bi-lateral trading relationship to a more multi-lateral profile that is the

The message objective: TPP is intended to create a bigger pie. And if you
wait and be of good cheer, a bigger slice comes to you.

- Carlton

Carlton A Samuels
Mobile: 876-818-1799
*Strategy, Planning, Governance, Assessment & Turnaround*

On Fri, Aug 31, 2012 at 2:23 PM, Salanieta T. Tamanikaiwaimaro <
salanieta.tamanikaiwaimaro at gmail.com> wrote:

> Dear All,
> Whilst on the Trans-Pacific Partnership, the US Assistant Secretary Jose
> Fernandez made some remarks which are interesting. Worthwhile noting is the
> inclusion of Mexico, Canada and Japan.
> Here you go:
> Strengthening the U.S.-Taiwan Economic Relationship
> Remarks
> Jose W. Fernandez
> Assistant Secretary, Bureau of Economic and Business Affairs
> American Chamber of Commerce
> Taipei, Taiwan
> August 5, 2012
> ------------------------------
> *I. **Introduction*
> Thank you. This is my first trip to Taiwan and I continue to marvel at the
> numerous cultural and economic ties that bind our people. One of our ties
> was illustrated to me as I read the paper this morning. I enjoyed seeing
> that Jeremy Lin’s visit took top billing in the newspaper, and the meeting
> between President Ma and I drew a little less attention.
> Let me give you just one example that is illustrative of the larger U.S. –
> Taiwan relationship. It is a great American tradition to start new
> companies in a home garage. In an Irvine, California garage in 1988 Linksys
> was born. The creators of this now ubiquitous line of home computer
> networking devices were Taiwan immigrants Janie and Victor Tsao. At the
> time they founded Linksys, they were also working as consultants
> specializing in pairing U.S. technology vendors with manufacturers in
> Taiwan. That pairing has become emblematic of the U.S. – Taiwan economic
> relationship. The latest numbers show that two-way trade between the United
> States and Taiwan in electrical machinery hovers around $23 billion per
> year.
> *II. **Strategic Rebalancing Toward Asia*
> While Taiwan has been exemplary as one of the so-called “Asian Tigers,” I
> want to put our economic relationship with Taiwan in the larger Asian
> context before discussing Taiwan specifically. That larger context is our
> work on the Trans Pacific Partnership, and the Select USA initiative.
> As you know, the global economic crisis of the past few years has pushed
> us in the United States to pursue our own economic recovery. This is a
> two-sided coin, with an eye toward regional trade liberalization on one
> side, and concerted efforts to attract more foreign investment to the
> United States on the other. At all levels of the U.S. government, we are
> broadening and deepening our economic relationships throughout the Asia
> Pacific region. We are acutely aware that reinvigorating our economy at
> home goes hand in hand with partnering on economic growth abroad.
> The United States has long been involved in developments in the Asia
> Pacific region. We are proud that our contributions to regional security
> here helped create the conditions that brought more people out of poverty
> faster than anywhere else in history. That engagement continues today and
> the futures of the United States and the Asia Pacific are inextricably
> linked. As Secretary of State Hillary Clinton has highlighted, we are not
> just a diplomatic or military power here. We are an economic force as well.
> In 2010 alone, our exports to the Pacific Rim were over $320 billion,
> supporting 850,000 American jobs.
> But our work is not finished. One of our country’s great challenges in
> this century will be to establish a stronger network of trade links and
> practices around the Pacific Rim. Our recently enacted Free Trade
> Agreements with South Korea and Colombia, and our commitment to the
> Trans-Pacific Partnership, are clear demonstrations that we are here to
> stay.
> I am proud to note that the American Institute in Taiwan (AIT) has been a
> very active promoter of these efforts. In fact, they have been so
> successful in working to promote America’s economic relationship with
> Taiwan that I was able to personally congratulate the former Director, Bill
> Stanton, on winning my award for export promotion in 2011. He also received
> the State Department’s coveted Cobb award for global trade promotion
> efforts. That’s two awards in the same year to one man, something that
> doesn’t happen very often in the State Department. The AIT team in Taipei
> and Kaohsiung (“GOW shung”) is carrying on that tradition and I expect
> great achievements from the incoming leadership team here in Taipei.
> All of these individual efforts fit into our larger work toward regional
> trade liberalization. Also supporting this effort is our commitment to the
> Trans-Pacific Partnership.
> Looking ahead to the next generation of trade agreements, we are aiming at
> crafting an agreement that addresses new and emerging trade issues and
> challenges. The Trans-Pacific Partnership, or TPP, includes the United
> States, along with Australia, Brunei Darussalam, Chile, Malaysia, New
> Zealand, Peru, Singapore, and Vietnam. It is a high-standard, broad-based
> regional agreement. We see the TPP as the most credible pathway to broader
> Asia-Pacific regional economic integration.
> The agreement will include core issues traditionally found in trade
> agreements, such as industrial goods, agriculture, and textiles as well as
> rules on intellectual property, technical barriers to trade, labor, and the
> environment. But it will also address cross-cutting issues not previously
> found in trade agreements, such as making the regulatory systems of TPP
> countries more compatible so U.S. companies can operate more seamlessly in
> TPP markets. It will also help innovative, job-creating small- and
> medium-sized enterprises participate more actively in international trade.
> Equally important is addressing new emerging trade issues, such as trade
> and investment in innovative products and services, and ensuring that
> state-owned enterprises compete fairly with private companies and do not
> distort competition in ways that put U.S. companies and workers at a
> disadvantage.
> The United States is participating in the TPP as the best vehicle to
> advance our economic interests and to promote economic growth and
> development in the critical Asia-Pacific region. Expanding U.S. exports is
> critical to our economic recovery and to the creation and retention of
> high-quality jobs in the United States. With its rapid growth and large
> markets, there is no region with which expanding our trade is more vital
> than the Asia Pacific.
> The TPP countries recently announced the addition of Mexico and Canada to
> the negotiations. Late last year Japan also formally expressed interest in
> beginning consultations with TPP member countries with a view to possibly
> joining the negotiations. Candidate countries for TPP must demonstrate
> through their actions and through bilateral consultations with each TPP
> country their readiness to meet the standards and objectives of the
> agreement. Once those bilateral processes are concluded, the current TPP
> partners must decide by consensus before a new member can participate. In
> short, we are excited by the possibilities created in the Asia-Pacific by
> the TPP, and are working very hard to make it a reality by the end of this
> year.
> Let’s move on to another program we just started, Select USA. So one side
> of the coin of economic recovery is expanding opportunities for U.S.
> companies to do business effectively abroad. The other side of that coin is
> the work that we do at home to encourage investment in the United States.
> The United States consistently ranks at the top of most major indicators
> for its attractive business and investment climate. In fact, from 2006
> through 2010, the United States received more FDI than any other country.
> The FDI flow into the United States in 2010 - $228 billion - was more than
> double the flow into any other country in the world, and despite economic
> difficulties of the time, 49 percent greater than the FDI flow into the
> United States in 2009. At the same time, total Taiwan direct investment
> flow in the United States was over $5 billion in 2010, an increase of 14.7%
> from 2009.
> Under a program called SelectUSA, the U.S. Departments of Commerce and
> State engage partners around the world, as I am doing here, to promote
> investment into our dynamic economy. SelectUSA showcases how the United
> States is the world’s premier business location and provides easy access to
> federal-level programs and services related to business investment.
> Why do I say that the United States is the world’s premier business
> location? Because we are the world’s largest economy; we consistently rank
> at the top of most major indicators for our attractive business and
> investment climate; our own investment in research and development makes us
> the world’s center for innovation; and our leadership in protecting
> intellectual property with a transparent and predictable legal system makes
> doing business in the U.S. both cost-efficient and secure. Also, one of the
> strongest reasons will always be the quality of our higher education,
> particularly in science and engineering. Taiwan people in the United States
> are well aware of this: 80 percent have achieved some level of higher
> education, particularly in these fields and in medicine. I understand that
> the U.S. regulatory environment can be daunting to some investors, but
> through our hardworking representatives at the American Institute in
> Taiwan, and SelectUSA and other U.S. government partners back in
> Washington, we can help connect investors with the business counseling and
> training they may need to comply with applicable regulations.
> We can also direct you to the different states’ economic development
> agencies, making sure you get connected to the right partners for your
> investment selection process.
> *III. **U. S. – Taiwan Economic Relations*
> Where does Taiwan figure into this picture? How can Taiwan partner with us
> and benefit from this wealth creation? Today, Taiwan is our 10th largest
> trading partner and our 15th largest export market. It would surprise
> many people but the United States actually trades more with Taiwan than
> with France; and Taiwan-U.S. trade is at near the same level as India-U.S.
> bilateral trade. The United States is Taiwan’s largest foreign investor,
> and Taiwan companies have made significant investments in the United
> States. Historically, the United States has been the strongest champion of
> Taiwan’s participation in global trade bodies such as the World Trade
> Organization and the APEC forum. Our strong economic relationship covers
> more than six decades. Taiwan has been an invaluable partner in influencing
> others to embrace reform and strive for economic growth.
> In recent years, however, this immensely valuable relationship has hit
> some bumps in the road that hinder our partnership and progress. We can’t
> afford these bumps and need to make sure that they do not detract from
> efforts to make full use of our potential. We were pleased to see that the
> Legislative Yuan recently took action that will clear the path for Taiwan
> to establish a maximum residue limit for ractopamine in beef, eliminating a
> serious impediment to U.S. beef imports. U.S. trade agencies will be
> monitoring implementation of the regulatory measures needed to allow U.S.
> beef imports to resume. These steps will be important in helping to rebuild
> confidence in our bilateral trade relationship.
> We know from our own experience that adhering to bilateral and
> multilateral trade commitments is not always easy, but it is essential to
> maintaining the credibility that serves as the foundation of what has long
> been a positive, constructive relationship between trading partners.
> Of course our bilateral economic relationship goes well beyond this
> particular issue and we have continued to engage Taiwan at the working
> level and via our capable colleagues at AIT on the full range of important
> bilateral trade and investment issues. For example, the United States
> worked for many years in support of Taiwan’s candidacy to join the WTO
> Government Procurement Agreement. These joint efforts were rewarded when
> Taiwan acceded to the Agreement in 2009. Taiwan has already made many
> reforms to its procurement practices, and we stand ready to assist as
> Taiwan continues to harmonize its measures with global best practices with
> regard to transparency, contract terms, and licensing.
> Taiwan has made tremendous progress over the years in improving
> intellectual property rights protection and enforcement, and the United
> States has carried out significant bilateral cooperation activities on
> intellectual property rights—IPR—issues. Still, challenges remain,
> including with regard to online infringement and the theft of trade
> secrets. During my time here in Taiwan I have visited companies that have
> had their technology stolen and heard their stories. For U.S. firms the
> protection of IPR is so vital because so many of our exports derive from
> IPR. A recent study estimated that 75% of U.S. exports involve IPR. Taiwan
> aspires to be an economy based on innovation, and together our unceasing
> efforts will ensure that Taiwan’s IPR enforcement regime meets the highest
> standards. Improved protection of trade secrets in Taiwan will help both
> foreign and domestic firms be competitive and innovative in today’s
> knowledge-based economy. The bottom line: we have made major progress over
> the years on many critical issues when both sides have been prepared to
> work together. The United States sincerely desires a reinvigorated trade
> relationship with Taiwan. It’s already generally good, but we can do better.
> Like the United States, Taiwan is also pursuing trade liberalization. We
> understand the Ma Administration has indicated a desire to be considered
> for the TPP in eight years. As a gold standard for future trade agreements
> in the region, the TPP requires members to embrace ambitious and
> comprehensive liberalization and open their markets to competition. We
> commend President Ma for recognizing the importance of trade integration,
> and for his expressed determination to push forward liberalization measures
> that would help Taiwan make its case as a possible candidate for future
> trade agreements.
> Change will not be easy, but the benefits of liberalization are clear:
> stronger and more competitive firms, better services, wider availability of
> products at lower prices, greater efficiency, and smoother integration into
> the world marketplace. More comprehensive economic liberalization will be
> an essential component for securing Taiwan's economic future. Real
> liberalization will demonstrate Taiwan's commitment to trade integration
> and potential inclusion in various trade arrangements. This includes
> comprehensive, bilateral FTAs—such as Taiwan's ongoing negotiations with
> Singapore—which is an important first step. As Taiwan's leaders implement
> meaningful market liberalization measures and pursue new trade agreements,
> firm resolve and commitment to free market principles as a responsible WTO
> member are essential attributes to live by. We look forward to deepening
> our trade and economic interaction with Taiwan. We will support Taiwan as
> it embraces these fundamental prerequisites to effective and meaningful
> trade integration. Everyone in this room is an important element of what we
> hope to do.
> *IV. **Next Steps & Conclusion*
> Just as Janie and Victor Tsao understood when they founded Linksys nearly
> 25 years ago, trade between Taiwan and the United States is vital to the
> prosperity of both. The United States and Taiwan have a long and positive
> history of cooperation and many shared interests in the region. We are
> hopeful that the positive recent steps Taiwan has taken to address the beef
> issue are a demonstration of the sustained commitment that will be needed
> to reenergize our bilateral trade dialogue. To be sure, Taiwan, like any
> democracy, will face tough choices in order to live up to its international
> obligations and to put its long-term economic interests above domestic
> politics. Taiwan is a part of the Asia-Pacific region’s economic future. We
> look forward to working with Taiwan as it builds cooperative and credible
> partnerships throughout the region, including with the United States.

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