Skip to main content

Advertisement

Advertisement

Door open for China to join TPP: US officials

WASHINGTON — China’s absence from the Trans-Pacific Partnership (TPP) is not due to any United States containment policies, and the door will be open for the world’s second-biggest economy to enter the trade pact if it is willing to meet the necessary standards and requirements.

WASHINGTON — China’s absence from the Trans-Pacific Partnership (TPP) is not due to any United States containment policies, and the door will be open for the world’s second-biggest economy to enter the trade pact if it is willing to meet the necessary standards and requirements.

US officials in Washington DC reiterated these points as the TPP began its 16th round of negotiations in Singapore over the weekend, with Asia-Pacific’s major economies looking to reach an agreement by the end of the year.

But while China is missing from what is potentially the world’s biggest free trade agreement, it is not being shut out of the process, Mr Robert Wang, the US State Department’s senior official for the Asia-Pacific Economic Cooperation (APEC), told reporters in Washington.

“Participation in the TPP is voluntary — countries are not even invited. It is really a question of China sitting there and deciding whether it’s interested. As the TPP has its short-term costs in terms of agreeing to market access and intellectual property rules, each economy will look at it and decide whether it wants to commit to these requirements,” he said.

“It is completely false to say China has asked to join the TPP but was rejected — that is not how the process works,” Mr Wang added. “China, like any APEC economy, is welcome to look at the TPP and decide if it’s willing to meet its requirements. The goal is to expand the TPP … it’s not a tennis club.”

Similar sentiments were reflected by Congressman Charles Boustany of Louisiana at a recent panel discussion in the US capital.

“I want to emphasise: (The TPP) is not an effort to contain or exclude China. This is an effort to set high standards and we’re open to inviting China back into a truly rule-based trading system, where we can have fair trade and fair commerce,” said Mr Boustany, who sits on the influential House Committee on Ways and Means, which oversees trade and tariff issues.

Countries in APEC can announce their desire to join the TPP, but entry is possible only after consulting with the existing 12 members. The latest to do so is South Korea, which will engage the TPP members for discussion soon.

Meanwhile, China has yet to formally state its interest in joining the TPP. But its absence from the US-led pact has been seen in some quarters to be a result of regional power competition, as the US seeks to grow its economic and geopolitical presence in Asia.

China has, instead, focused on the Regional Comprehensive Economic Partnership (RCEP), which is based on the Association of South-east Asia Nations and its current free trade agreement partners. RCEP negotiations are set to conclude by the end of 2015.

Despite these separate efforts, the push for an Asia-Pacific trade bloc does not have to be a competition, said Mr Reggie Singh, Director for Asia-Pacific Affairs at the Office of the US Trade Representative, which is responsible for developing and coordinating US international trade policy.

“We are perfectly fine with RCEP, and will be happy to see it succeed and flourish. Because, at the end of the day, any trade and investment agreement that lowers barriers is positive for everyone,” he said.

“Meanwhile, there is no reason China or any other APEC member cannot join the TPP. It’s definitely not our intention to exclude China — that’s counter-productive,” he added. “When you are pursuing a trade agreement, you want as many members as possible — provided they meet the agreement’s standards.”

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.