GOOD news out of Washington is rare. Last week congressional leaders agreed on a bipartisan bill which, if passed, would for the first time in years give the president “fast-track” authority when negotiating trade deals. The bill would be a boost for the prospects of a huge trade deal, the Trans-Pacific Partnership (TPP), binding America with 11 economies (including Japan but not China) around the Pacific rim. Now, as if on cue, come welcome signals about the TPP itself. As Japan’s prime minister, Shinzo Abe, prepared to head to Washington for a much-anticipated trip including an invitation to address a joint session of Congress (see article), he claimed that America and Japan were close to agreement over their bilateral terms—on which the whole TPP deal hinges.
Yet there are two big caveats. First, fast track, formally known as Trade Promotion Authority, may still fall foul of Congress. Second, Japan may not make any serious cuts to tariffs that protect its farmers. Those outcomes are more likely because...
from The Economist: Leaders http://ift.tt/1HwgeHf
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