The Trans-Pacific Partnership: Defence, Industry and Strategy

Abstract

The Trans-Pacific Partnership, if ratified by all parties, is likely to have ramifications for the global defence market and the US’ economic and political strategy towards the Asia-Pacific region. Although the TPP excludes a number of defence-related issues such as defence procurement, the TPP’s provisions on technology transfers and intellectual property rights could bolster the US’ military-technology relations with the Asia-Pacific. For Europe, which is excluded from the Partnership, the likely impact of TPP is uncertain and could raise important challenges and opportunities related to Europe’s own defence-industrial relations with the Asia-Pacific and its wider security role in the region.

Keywords:

• Trans-Pacific Partnership
• Europe
• Asia-Pacific
• dual-use
• defence industry

Notes

¹ So far Malaysia is the only state-party to have ratified the TPP.

² See Schaefer, “US Unilateralism Supplement to WTO Initiatives?”, and Capling and Ravenhill, “Multilateralising Regionalism”.

³ “The Post’s View – Ratify the Trans-Pacific Partnership”, Washington Post, 12 November 2015.

⁴ “Preamble – Transpacific Partnership”, 2015, https://ustr.gov/sites/default/files/TPP-Final-Text-Preamble.pdf.

⁵ Green and Goodman, “Geopolitics of Asia and the Pacific”.

⁶ “Remarks on the Next Phase of the U.S. Rebalance to the Asia-Pacific”, speech by the Secretary of Defense Ash Carter at the McCain Institute, Arizona State University, 6 April 2015.

⁷ Carter, “Remarks on the U.S. Rebalance”.

⁸ “Chapter 29 Exceptions”, 2015, https://ustr.gov/sites/default/files/TPP-Chapter-Summary-Exceptions-and-General-Provisions.pdf.

⁹ “TPP Final Table of Contents”, 2015, https://ustr.gov/trade-agreements/free-trade-agreements/trans-pacific-partnership/tpp-full-text.

¹⁰ Ibid.

¹¹ “SIPRI Military Expenditure Database”, 2015, https://www.sipri.org/databases/milex.

¹² Bitzinger, “Defense Industries in Asia”, 457.

¹³ “TPP Final Table of Contents”.

¹⁴ Ibid.

¹⁵ Fiott, “The “TTIP-ing Point” and No “TTIP-ing” Point for European Defence?.

¹⁶ Zhu and Jeon, “Trade, FDI, and Information Technology” and Van Pottelsberghe and Lichtenberg, “Does FDI Transfer Technology?”.

¹⁷ Reppy, “Dual-Use Technology”, 269; Dombrowski and Gholz, Buying Military Transformation; Walsh, “The Role, Promise, and Challenges ”.

¹⁸ See, for example, Brooks, Producing Security.

¹⁹ Dombrowski and Gholz, Buying Military Transformation, 30.

²⁰ Reppy, “Dual-Use Technology”, 269.

²¹ “Trans-Pacific Partnership: US Aerospace Companies Hope for Increased Trade While Labor Unions Predict Lost Jobs”, International Business Times, 6 October 2015.

²² National Science Foundation, “Asia’s Rising Science and Technology Strength”, vii.

²³ OECD, “Main Science and Technology Indicators”, 2015, http://www.oecd.org/sti/msti.htm.

²⁴ Ibid, 12.

²⁵ “2016: Special 301 Report”, 7. https://ustr.gov/sites/default/files/USTR-2016-Special-301-Report.pdf

²⁶ See Bellais and Guichard, “Defense Innovation”.

²⁷ “TPP Final Table of Contents”. provided in footnote 9.

²⁸ Ibid.

²⁹ Ibid.

³⁰ “Don’t Forget the National-Security Case for TPP Trade Deal”, The Wall Street Journal, 23 October 2015.

³¹ Lord and Erickson, Rebalancing U.S. forces, and Simón and Fiott, “Europe After the U.S. Pivot”.

³² “Pacific pivot makes modest gains in early years”, Stars and Stripes, 29 June 2015.

³³ “National Export Initiative Fact Sheet”, http://trade.gov/nei/nei-fact-sheet.asp.

³⁴ Kelly et al. The U.S. Army in Asia, 2030-2040, 76.

³⁵ USTR, “Previous Findings on the Economic Impact of TPP”. https://ustr.gov/about/TPP/Previous-Findings-Economic-Impact-TPP.

³⁶ Ibid.

³⁷ Nando, “The U.S.-Singapore FTA”, 17-18.

³⁸ Ibid, 9.

³⁹ Parameswaran, “US, Singapore Ink New Defense Pact”.

⁴⁰ Fiott, “Europe and Pentagon’s Third Offset Strategy”.

⁴¹ “The Third U.S. Offset Strategy and its Implications for Partners and Allies”, speech by Deputy Secretary of Defense Robert Work at the Willard Hotel, Washington DC, 28 January 2015.

⁴² Ibid.

⁴³ Caverley, “United States Hegemony”, 606.

⁴⁴ Ibid.

⁴⁵ “National Defense Program Guidelines”, 2013, 5. http://www.mod.go.jp/j/approach/agenda/guideline/2014/pdf/20131217_e2.pdf.

⁴⁶ Hughes, Japan’s Re-emergence, 90-2.

⁴⁷ Dibb, “The Revolution in Military Affairs”, 103.

⁴⁸ Bitzinger, “Defense Industries in Asia”, 454.

⁴⁹ Basile and Isernia, “The US Rebalancing to Asia”.

⁵⁰ “The EU’s Bilateral Trade and Investment Agreements – Where are We?”, European Commission Memo, 3 December 2013. http://europa.eu/rapid/press-release_MEMO-13-1080_en.htm.

⁵¹ “Countries and Regions – Japan”, European Commission, 6 November 2015, http://ec.europa.eu/trade/policy/countries-and-regions/countries/japan/.

⁵² Ibid.

⁵³ “Annual Report 2014”, BAE Systems Annual Report 2014, http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/Annual%20Reports/bae-annual-report-2014.pdf, 41.

⁵⁴ “Airbus Defence and Space Announces Skynet 5 Satellite Move to Deliver Military Satcom Over Asia-Pacific Region”, Airbus Press Release, 16 March 2015, https://airbusdefenceandspace.com/newsroom/news-and-features/airbus-defence-and-space-announces-skynet-5-satellite-move-to-deliver-military-satcom-over-asia-pacific-region/.

⁵⁵ “Malaysia”, Finmeccanica, http://www.finmeccanica.com/en/finmeccanica-nel-mondo/international-presence-2/malaysia-3?WT.ac=Malaysia

⁵⁶ “Australia’s Submarine Decision: Concerns Down Under, Celebrations in Paris”, Defense News, 2 May 2016, http://www.defensenews.com/story/defense/2016/04/29/australia-submarine-dcns-france-hollande-turnbull-stitt-davies-germany-japan-tkms-mitsubishi/83713442/

⁵⁷ “Southeast Asia: The Next Growth Opportunity in Defence”, McKinsey&Company, 2014, http://www.mckinsey.com/~/media/McKinsey/dotcom/client_service/Aerospace%20and%20Defense/PDFs/SEA%20Defense%20Report%202014%20-%20Final.ashx.

⁵⁸ “Night-Vision Startup Tonbo Bags Multimillion Dollar Contracts”, The Hindu, 14 November 2015.

⁵⁹ Simón, “Europe, the Rise of Asia”.

⁶⁰ “The Challenges of Conflict Resolution: Jean-Yves Le Drian”, IISS, 5 June 2016, https://www.iiss.org/en/events/shangri%20la%20dialogue/archive/shangri-la-dialogue-2016-4a4b/plenary4-6c15/drian-5b52

⁶¹ Neuman, “Defense Industries and Global Dependency”, 451.

⁶² Bitzinger, “Defense Industries in Asia”.