Asian nations seek to save TPP trade after Trump withdrew U.S

President Donald Trump on Monday signed an executive order in the Oval Office on Monday pulling the U.S. out of the 2015 TPP agreement and distancing the country from its Asian allies.

The TPP, which the U.S. had signed but not ratified, was a pillar of former U.S. President Barack Obama’s policy to pivot to Asia.

Australian Prime Minister Malcolm Turnbull said he had held discussions with Abe, New Zealand Prime Minister Bill English and Singaporean Prime Minister Lee Loong overnight about the possibility of proceeding with the TPP without the U.S.

“Losing the United States from the TPP is a big loss, there is no question about that.

“But we are not about to walk away … certainly there is potential for China to join the TPP,” Turnbull told reporters in Canberra on Tuesday.

New Zealand’s English said the United States was ceding influence to China and the region’s focus could switch to alternative trade deals.

“We’ve got this RCEP agreement with Southeast Asia, which up until now has been on a bit of a slow burn, but we might find the political will for that to pick up if TPP isn’t going to proceed,” English said.

Malaysia’s trade minister said negotiators from the remaining TPP countries would be in “constant communication” to decide the best way forward.

“Notwithstanding the current position of the new U.S. Administration on TPP, we will continue to engage with our American colleagues to strengthen our bilateral trade and economic relations,” Mustapa Mohamed said in a statement.

The TTP, which has been five years in the making, requires ratification by at least six countries accounting for 85 per cent of the combined GDP of the member nations.

Australia held open the possibility of China, the world’s top exporter, joining a revised deal.

“The original architecture was to enable other countries to join,” Australian Trade Minister Steven Ciobo told the Australian Broadcasting Corporation on Tuesday.

“Certainly I know that Indonesia has expressed interest and there would be scope for China if we are able to reformulate it.”

Japan has led the push for the partnership, which also includes Brunei, Canada, Chile, Malaysia, Mexico, Peru and Vietnam.

“There is no change to our view that free trade is the source of economic growth,” Japanese Economy Minister Nobuteru Ishihara told reporters.
When asked whether Japan would be open to negotiating a bilateral trade pact with the U. S., Ishihara said it was still uncertain whether U.S. trade officials would start such negotiations.

Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda said separately that Japan was not considering moves with other TPP members based on a lack of U.S. involvement.

“As Prime Minister Abe has made clear, TPP without the United States is meaningless and the balance of interests would crumble,” he told a news conference, adding Tokyo would keep explaining the benefits of the pact for America.

Abe had made TPP a core of his economic growth policies and along with the Obama administration, viewed TPP as strategically vital in the face of a rising China

New Zealand Trade Minister Todd McClay said he had talked with a number of TPP-member ministers at the World Economic Forum in Davos last week and he expected they would meet over the coming months.

“The agreement still has value as a Free Trade Agreement with the other countries involved,” McClay said in an emailed statement to Reuters.