PM Lee disappointed by TPP failure, will seek more clarity at Apec meet

SEMARANG — Expressing disappointment that the Trans-Pacific Partnership (TPP) will not be ratified before President-elect Donald Trump takes office in January, Prime Minister Lee Hsien Loong said on Monday (Nov 14) he hopes more clarity on a resolution to the stalled pact could emerge at the Asia-Pacific Economic Cooperation (Apec) meetings later this week.

Speaking to Singapore media at the end of his leaders’ retreat in Semarang, Indonesia, Mr Lee said it was premature to discuss alternatives to the TPP — given Mr Trump’s opposition to the trade deal during his campaign — but he hopes for a practical solution.

Mr Lee noted that it was “quite well-known” that Mr Trump “had no sympathy for the TPP at all” during the United States presidential campaign. The American tycoon’s position on the 12-member trade deal covering about 40 per cent of global output was “a disappointment to all of us who worked so hard to negotiate the TPP”, he added.

When they meet in Peru for the Apec Summit later this week, leaders of nations in favour of the TPP, including President Barack Obama, will exchange notes and “see what we can do about the situation”, Mr Lee said.

On the campaign trail, Mr Trump had strongly opposed the TPP. He had said he wanted to renegotiate the deal despite other world leaders warning that such a move would unravel the entire package. Following Mr Trump’s electoral victory last week, Republican congressional leaders confirmed that the TPP was most likely going to fall through. A few days ago, the Obama administration announced that it had suspended efforts to win congressional approval for the trade deal and that the fate of the TPP was left to Mr Trump and the Republican lawmakers.

On Monday, Mr Lee was asked about suggestions that the terms for TPP could be reviewed or that could include countries like Russia and China. He replied that that would make it a completely “new animal”. 

Noting that the TPP is a very elaborate and carefully-balanced deal that was a result of five to six years of negotiations, Mr Lee said it is “not so easy to say we’ll change the terms”. 

“What are you going to change? Who is going to give up more or less? And what’s the balance — and if you bring in a new country, it’s a completely new deal altogether,” he added. 

Furthermore, if the new entrant is a big country, they will not sign on to what has already been agreed upon before they were participants, said Mr Lee. “They will want to reopen everything. So effectively you’ll be talking about a new exercise."

But it was still premature to pursue definitive alternatives, added Mr Lee. “Let’s first assess how everybody feels and what they think could be done as a practical second best or solution for the time being.”

Singapore has been among those calling on the US to ratify the TPP soon. In an interview with Time magazine editor-at-large Ian Bremmer published last month, Mr Lee had said a failure by the US to ratify the TPP will be a “very big setback for America”.

With some countries, such as Japan, ratifying the pact, the US’ failure to deliver on the TPP will affect the country’s credibility. “Your standing goes down with many countries around the world,” Mr Lee said then.

A spokesperson for Singapore’s Ministry of Trade and Industry told TODAY previously that the Republic will continue to work with the US and other TPP parties to realise the benefits of the agreement. 

“Singapore and the US are like-minded partners, who share robust and long-standing bilateral economic relations. The US enjoys a healthy trade surplus with Singapore, and our companies have created good jobs in both countries,” said the spokesperson.