WASHINGTON (AP) — The failure to finalize a landmarktrans-Pacific trade pact this year as planned
has dealt a blow toPresident Barack Obama’s policy shift to Asia.While negotiatorssay they have made
substantial progress, many hurdles remain to creatinga bloc encompassing a third of global trade. One of the
biggest will bewinning the backing of Congress.As recently as October, theleaders of the 12 nations in the
Trans-Pacific Partnership had saidtheir goal was reach an agreement by the end of 2013, although
mostanalysts had viewed that as unrealistic given the complexity of the pactand the political pressures
governments face in winning domesticapproval.Labor groups and lawmakers from Obama’s own DemocraticParty
wasted little time in pouncing on the indecisive outcome Tuesdayof closed-door deliberations in Singapore.
Trade ministers said thatthey had identified "potential landing zones" for most of theoutstanding
issues but gave few specifics. They plan to meet again nextmonth."The failure in Singapore makes clear
that theadministration is far from reaching agreement with the other countries,and it’s far from reaching a
deal that the Congress can support," Rep.Rosa DeLauro, D-Conn., told reporters.With sizable numbers
ofDemocrats coming out against the deal, principally because they argue itwill cost American jobs, the
administration will be counting on strongRepublican support, which is not guaranteed in the bitterly
partisanpolitical atmosphere that pervades Washington."There may be asignificant number of tea partyers
who are so fed up with Obama thatthey’re willing to depart from their values on free trade to obstructthe
legislative program," said Gary Hufbauer, an international tradeexpert at the Peterson Institute for
International Economics.Theadministration views the partnership as key to boosting American exportsin Asia’s
fast-growing markets and demonstrating U.S. economicleadership in a region where strategic rival China looms
increasinglylarge. That supports a diplomatic and military effort by Obama to shiftU.S. foreign policy focus
after a decade of costly war in Afghanistanand Iraq.Congressional support isn’t just needed for
ratificationof the trade pact. Even before it reaches that stage, U.S. negotiatorswill face difficulties
finalizing the terms of the deal with the other11 nations unless Congress first gives the administration
formalauthority to negotiate on its behalf.That authority, known asfast track, ensures that the
administration can negotiate a tradeagreement that Congress can accept or reject but cannot change. But
thatauthority — under which the U.S. negotiated its most recent tradeagreements with South Korea, Colombia
and Panama — lapsed in 2007.Unless it is renewed, it could undermine the confidence of otherTrans-Pacific
Partnership nations in the U.S. negotiators’ ability tostick to their commitments, as Congress could demand
changes to theagreement reached by the 12 governments.The Trans-PacificPartnership, or TPP, is ambitious. It
aims to reduce tariffs on goodsand services to close to zero among disparate economies and addressissues
beyond the scope of previous trade pacts, including labor andenvironmental standards, intellectual property
and competitiveadvantages of state-owned companies.Originally, Obama called forTPP to be completed by the
end of 2012. That deadline slipped and wasreset, but in the meantime, Japan, the world’s third-largest
economyjoined the negotiations, which has complicated things but given the pacta strategic clout it lacked
before. The other nations are Australia,Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru,
Singapore,the United States and Vietnam."The result (in Singapore) wasdisappointing but not surprising
— and not fatal, provided they keepmoving toward agreement in the first half of next year," said
MatthewGoodman, a former international economic adviser in the Obama WhiteHouse. He said the new de facto
deadline is probably April, when Obamais due to visit Asia. He was forced to cancel a trip to the region
inOctober trip because of the government shutdown.Hufbauer saidfast track could still squeak through
Congress, although a complicatingfactor is that 2014 is a midterm election year in the U.S. and
lawmakerswill be reluctant to vote for a trade deal that could be unpopularamong their constituents. Some
151 Democrats and 22 Republicans — out of435 members of the House — have already come out in opposition
torenewal of fast track.But there’s also support for TPP inCongress. Prominent Republicans last week called
for a consensus onsupport for TPP, saying it’s in American strategic and economicinterests, and
congressional aides say there’s been progress towardintroducing a bipartisan bill for fast track.Rep. Dave
Camp,R-Mich., who chairs the House Ways and Means Committee, which overseestrade policy, said Tuesday he
thought a fast-track bill could be passedearly next year although in the past it has taken close to a year
frombill introduction to presidential signing.Economists say TPPwould boost growth. The U.S. Trade
Representative says goods andservices exports to TPP countries already support 4 million Americanjobs, and
if the deal takes effect, it could generate an estimated $305billion in additional world exports per year,
by 2025, including anadditional $123.5 billion in U.S. exports. It says that would benefitAmerican
businesses, workers, farmers, ranchers and service providers.Butsecrecy of the TPP negotiations has only fed
into the skepticism amongDemocrats and labor unions about how free trade agreements would affectU.S.
companies and workers.Rep. Louise Slaughter, D-N.Y., saidTuesday that since the trade pact with South Korea
took effect in 2012,the U.S. trade deficit with that East Asian nation has hit recordlevels. She said TPP
would benefit multinationals and described fasttrack as an "undemocratic seizure of
power."Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.