The TPP negotiations in Hawaii have not yet reached final results

However, this is a defeat for the Obama administration, which promoted these talks as the final round of negotiations on a deal that would bind 40% of the world economy to a new set of rules for trade. In the end, a deal with 21st century policies on Internet access, advanced pharmaceuticals and clean energy trading was drowned out by issues that have plagued international trade for decades such as access to milk markets in Canada, sugar markets in the US and rice markets in Japan.

New Zealand's Trade Minister, who has insisted on better access for New Zealand's dairy exports, said "No, we will not be pushed out of this deal". Australia, Chile and New Zealand continue to resist a U.S. push to protect big pharmaceutical companies' intellectual property for up to 12 years, shielding them from generic competition and offsetting the costs of developing next-generation biologic drugs.

Total US trade excluding services in 2014 with Canada was $658 billion, Mexico $534 billion, Japan $201 billion, Singapore $47 billion, Malaysia $44 billion, Australia $37 billion, Vietnam $36 billion, Chile $26 billion, Peru $16 billion, New Zealand $8 billion and Brunei 0.6 billion.

Trade ministers have achieved some successes such as broad agreements on environmental protection for some of the most sensitive, diverse and threatened ecosystems on earth, ending one of the most controversial chapters of the Trans-Pacific Partnership.

They also reached an agreement on export labeling with separate “geographical indications” such as whether sparkling wine can be called champagne. And they agreed on a code of conduct and conflict of interest rules for extrajudicial arbitrators to hear complaints from companies that their investments have been harmed by unjust government actions.

But failure to complete a deal after eight years of negotiations means the next round will push the US ratification battle into 2016, a presidential election year. Most Republican presidential candidates are very likely to support it, but a final deal would force Democratic front-runner Hillary Rodham Clinton to declare her position. The promotion of TPP has divided the US President's Democratic Party. Further delays would increase the likelihood that the deal would be ratified by Obama's successor, just as George Bush's North American Free Trade Agreement (NAFTA) was signed by Bill Clinton.

The failure of the Maui talks shows the extreme difficulties of reaching an agreement with multiple countries, each with its own political problems. Vietnam, Malaysia and New Zealand are ready to make significant concessions to access the US market. But with Canadian Prime Minister Stephen Harper fighting for his political survival ahead of a national election this October, Canada is not budging any further on opening up its poultry and dairy markets. Chile, with a new center-left government and free trade agreements in place with each country in the TPP, sees no reason to compromise, especially on its demand for a short period of protection for big American pharmaceutical companies. DelegationAustralia insisted that pharmaceutical market protection beyond five years would never be approved by Congress, while the United States requested 12 years.

Ildefonso Guajardo, Mexico's Minister of Economy, is determined to oppose Japanese car exports that do not meet the 65% origin requirement from TPP.

The bright spot is environmental negotiations. The completed environment chapter will cover illegal wildlife trade, forestry management, overfishing and marine protection, and it could prove to be a milestone, setting a new floor standard for all future multilateral treaties.

Under the agreement, 12 countries, from Peru's jungles to Vietnam's Mekong Delta, must commit to complying with their existing wildlife trade treaties and environmental laws. Environmentally destructive subsidies, such as cheap fuel to power illegal fishing vessels and government boatbuilding support for overfished waters, are prohibited. This chapter highlights the “long-term conservation of endangered species” such as sea turtles, seabirds and marine mammals and “iconic marine life such as whales and sharks”. Non-compliance will be handled according to a procedure set out in the trade agreement, with the possibility of trade sanctions. The United States hopes the threat of economic sanctions will provide supportEnvironmental ministries are relatively weak in countries such as Peru, Malaysia and Vietnam.

The impact of the TPP's environmental chapter could be broad, for both countries inside and outside the agreement. The 12 TPP countries account for more than a quarter of global seafood trade and about a quarter of the world's wood and pulp production. Five of these countries are ranked among the most biodiverse in the world. Under the terms of the new agreement, member countries will have to increase port inspections and document checks. This provision could expand the scope of the agreement beyond 12 countries. Illegal wildlife and timber harvesting is on its way to countries like China passing through the ports of 12 countries. And TPP countries must take action if they discover that contraband has been illegally mined, even if the productthat is not considered illegal in their country.

Negotiators say they have significantly narrowed the number of outstanding issues. They pledged to continue the progress of negotiations. But, as one official said, if negotiations are interrupted for a long time, more countries will say no than yes.

Source: Vietnam Embassy in Chile, August 2, 2015.