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'Positive' sign on free trade pact(2)

2013-07-03 09:27 China Daily Web Editor: Wang Fan
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The objective of the Doha round is to lower trade barriers around the world.

Tian said the Doha stalemate has spurred the US to scramble for regional preferential trade pacts outside the WTO.

Besides the TPP, the US has announced the launch of talks on the Transatlantic Trade and Investment Partnership with the 28-nation European Union, with the first round of negotiations due in early July. The two sides already have bilateral trade and investment worth nearly $5 trillion, the world's largest.

US Vice-President Joe Biden has said the US expects to reshape global rules for trade and improve the rules and norms by advancing the proposed Asia-Pacific regional free trade agreement and another agreement with the EU.

Against such a background, the unnamed source said: 'China has to reconsider its strategy, turning more positive about the TPP. Otherwise, it will get sidelined on the global trade rules.'

Xue Rongjiu, vice-chairman of the China Society for WTO Studies, said: 'High levels of the Chinese government should show their resolution on joining the TPP, pressurizing ministries and local governments to make it happen. We have to break the barriers and break the vested interests.'

Wu Jiahuang, another vice-chairman of the China Society for WTO Studies, said while China's new leadership is seeking further reform and opening-up, the TPP could be a breakthrough for the nation.

'The earlier we join, the more benefits we will enjoy.'

Matthew Goodman, who was White House coordinator for the Asia-Pacific Economic Cooperation and the East Asia Summit forums during US President Barack Obama's first term, said: 'In a practical sense, it would be very difficult to incorporate China into the (TPP) negotiations at this stage. I don't think China, even if it expresses interest and seriously considers it, is going to be ready, willing and able to join.'

US Trade Representative Demetrios Marantis said in an interview with CNBC that while the TPP seeks to eliminate trade barriers and require members to comply with a high standard of transparency, China has to meet the high standards if it wants to join the pact.

The unnamed source from the Ministry of Commerce said: 'We know it's difficult, but the key point is we have to change minds and stick to opening-up to the world. Once we are determined on the TPP, everything else will be solved.'

The source said ongoing talks on an investment treaty between China and the US will pave the way for China to join the TPP.

'The treaty touches on many sensitive and important issues, based on which talks on the TPP would be easier,' he said.

China and the US began to negotiate on the investment treaty early in 1980, but the talks were suspended before being relaunched in 2008.

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