U.S. President Barack Obama's push for a pan-Pacific trade pact, a key part of his strategic pivot to Asia, suffered a major blow at the hands of Senate Democrats on Tuesday when they blocked debate on a bill that would have smoothed the path for the deal.
The stunning outcome cast doubt on the Trade Promotion Authority (TPA) "fast track" bill which is key to the Obama administration's ability to complete the 12-nation Trans-Pacific Partnership (TPP).
Washington's negotiating partners say enacting U.S. fast-track legislation to expedite passage of any trade deal is vital to clinching an agreement that would create a free trade zone covering 40 percent of the world economy.
"Each negotiation member nation considers the TPA bill indispensable towards an early agreement on TPP talks," said Japan's Chief Cabinet Secretary Yoshihide Suga told a news conference. Tokyo has long said TPP members would find it difficult to make trade concessions if the trade deal was subject to revision in the U.S. Congress.
"Japan strongly hopes an early enactment of the bill in the U.S.," Suga, the top government spokesman, told a regular news conference.
Failure to clinch a U.S.-led TPP agreement could also damage Washington's leadership image in Asia, where China is forging ahead with a new Beijing-led Asian Infrastructure Investment Bank (AIIB) without the participation of the United States and Japan.
The Senate voted 52-45 - short of the 60 votes needed - to pave the way for debate on the "fast-track" trade authority for Obama. "What we just saw here is pretty shocking," said Senate Majority Leader Mitch McConnell, a Republican.
The vote marked a victory for Senate Democratic leader Harry Reid, an outspoken opponent of fast-track, after weeks of speculation that the toughest fight would be in the House of Representatives and not the Senate.
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