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Obama's legacy in Asia rests on TPP

Published Mon, Apr 21, 2014 · 10:00 PM
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WHILE there will be much on his to-do list during his tour of Asia this week, US President Barack Obama is determined to use his four-nation visit to ramp up support for a deadlocked trade deal that is key to his economic agenda and his country's so-called "pivot" towards Asia. Discussions on the ambitious Trans-Pacific Partnership (TPP) - a mega free trade pact involving 12 Pacific Rim countries including Singapore - have not gone as smoothly as the United States had hoped. The dragged-out negotiations missed a self-imposed end-

2013 deadline and it is still not clear when the talks - the next round will be held in Vietnam next month - can be wrapped up.

Agriculture and the auto sector are the two sensitive areas that have proven to be sticking points between the US and Japan, the world's No 1 and No 3 economies respectively. Washington wants Tokyo to lower its tariff on beef imports as well as ease protective measures that also ring-fence dairy products, pork and rice. Japan, meanwhile, wants the US to drop the tariffs imposed on imported cars and trucks, which the influential US automotive lobby has fiercely opposed. There is, however, a degree of optimism in the air that Mr Obama could make some headway on the TPP during his visit to Japan, his first stop on his swing through the region. Analysts are hopeful of a breakthrough in the TPP talks that would allow the two sides to signal that they have settled at least some of their differences and moved closer to an agreement.

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