“One month ago, Mr. Brady, Mr. Levin and I were in Honolulu, Hawaii talking to TPP country officials. In our meetings, I was struck by the urgency that so many representatives of other countries had for a strong agreement. I think we all see big potential in the TPP.
“The Asia Pacific countries account for 40 percent of the global population and, together, generated 56 percent of global GDP in 2010. Indeed, my home state, Washington, exports nearly 70 percent of its total exports to markets in the Asia-Pacific region.
“But we have to do things right if we are to unlock the potential of TPP. We have to ensure that TPP lives up to its billing as a ‘21st century’ agreement.
“This is all the more important because, as President Obama said in Honolulu last month, ‘the TPP has the potential to be a model not only for the Asia Pacific but for future trade agreements.’
“So, what does it mean to be a ‘21st century’ agreement?
“To me, it means an agreement that can help create American jobs and promote American values. TPP must tackle the range of real world barriers to competition. This means not just tariffs and non-tariff barriers, but also things like unfair competition from state-owned enterprises.
“In June, every Democratic Member of the Ways and Means committee signed a letter to President Obama identifying State Owned Enterprises as ‘one of the greatest of... the 21st century challenges faced by U.S. businesses and workers’ and urging robust SOE disciplines in TPP. Ensuring that SOEs compete on an even playing field with private actors has to be a critical component of any TPP agreement.
“This is all the more important when there are countries like Japan that are seeking entry into TPP. Japan is notorious for the range of methods its uses to close its markets to foreign competition.
“This includes special benefits for SOEs such as Japan Post, as well as a host of tariff and non-tariff measures in sectors ranging from agriculture to autos to pharmaceuticals. USTR has just initiated a comment period to help in deciding whether Japan should be allowed at the negotiating table.
“Some are skeptical that Japan will really open its markets; skeptics think Japan will continue to use creative methods to keep out foreign goods and services while taking advantage of other countries’ TPP trade concessions.
“That is clearly an unacceptable situation. We need to make sure we do not end up there if we do agree to Japan’s participation.
“We also need to look carefully at the ‘rules of origin’ that determine which products will be getting duty-free treatment and create rules that help keep the maximum benefit of the FTA - and thus the greatest number of jobs - in the TPP region.
“We also need to incorporate and, where appropriate, build on the so-called May 10 Agreement. That Congressional-Executive agreement reflected state-of-the-art thinking on a range of critical issues, including labor, environment, and intellectual property.
“May 10 has to be the basis for the TPP and all other FTAs moving forward.
“Speaking as a physician with experience in less developed countries, I think we got it right in the May 10 agreement on IPR access to medicines.
“We crafted language that ensured protection for innovation but also ensured that life-saving generics would be available in developing countries at the exact same time that they become available in the United States.
“That is consistent with core American values. Lives are at stake. Poor people in poor countries shouldn’t have to die because they don’t have the affordable medicines we have here.
“I’ve been very disappointed by USTR’s move away from this policy. I think this reported change would be deeply flawed. Hopefully, USTR can address the issue in its testimony today.
“The expectations are high for this agreement, as are the stakes.
“And I think we can overcome them, but we have a lot of work ahead of us. I look forward to working with the Administration and with our Republican colleagues to get there."
