Skip to main content

Advertisement

Advertisement

TPP members agree to pursue deal without US

HANOI — Singapore and other signatories of the Trans-Pacific Partnership (TPP) agreed yesterday to pursue the trade deal without the United States, as the Trump administration’s “America First” policy created tension at a meeting of Asia-Pacific countries.

Follow TODAY on WhatsApp

HANOI — Singapore and other signatories of the Trans-Pacific Partnership (TPP) agreed yesterday to pursue the trade deal without the United States, as the Trump administration’s “America First” policy created tension at a meeting of Asia-Pacific countries.

Turmoil over global trade negotiations was laid bare at the Asia-Pacific Economic Cooperation (Apec) forum meeting, which failed to agree on its usual joint statement after US opposition to wording on free trade and fighting protectionism.

The meeting in Hanoi was the biggest global trade gathering since US President Donald Trump upended the old order, arguing that multilateral free-trade agreements were costing American jobs and withdrawing from the TPP.

On the sidelines of Apec, the 11 remaining countries of the TPP agreed to explore how they could move ahead without Washington — partly in the hope that the White House would reconsider leaving.

Although the TPP members kept the trade agreement alive, they fell short of a wholehearted commitment to advance immediately with a deal that members also see as a way to contain an increasingly dominant China.

“We’re focused on how we can move ahead with 11 countries,” New Zealand Trade Minister Todd McClay said.

In a statement yesterday, the Ministry of Trade and Industry said: “Singapore is encouraged by our partners’ commitment to the TPP. This will have a positive spillover effect on economic integration in the region, and the agreement will also provide for others to join in when ready.”

Minister for Trade and Industry (Trade) Lim Hng Kiang said: “Singapore supports the joint efforts by the 11 to sustain the TPP. It is important that we keep up (the) momentum. Singapore will participate constructively in this collective process to harvest the TPP’s benefits.” The ministers have tasked senior officials to work out the options over the next few months to bring the TPP into force expeditiously, the statement added.

Mr Trump’s newly-appointed trade chief Robert Lighthizer poured cold water on the prospect of a US return to the TPP, saying Washington “pulled out of the TPP and it’s not going to change that decision”.

“The TPP 11 can make their own decisions, the US makes its decisions, that’s what sovereign nations do,” Mr Lighthizer told reporters, adding his country will “stay engaged” in the area, albeit on a bilateral basis.

One of the biggest challenges of the TPP is keeping on board Vietnam and Malaysia, which signed up for the deal and promised to make major reforms largely to get better US market access. “We will need to ensure that our interests remain protected and the benefits derived from it still outweigh the costs,” Malaysian Trade Minister Mustapa Mohamed said.

The volume of trade between the remaining countries is barely a quarter of the level it would have been if the US had remained in the TPP. The original pact — inclusive of American participation, would have covered around 40 per cent of the global economic output.

Fears of protectionism have grown under the Trump presidency and the failure of the Asia-Pacific countries to agree on their usual joint statement over the weekend did nothing to quell them. The US was against wording agreed to by the 20 other Apec countries that supported free trade and opposed protectionism, officials at the talks said.

A statement from the Vietnamese chairman of the talks gave a “commitment to promote trade and investment liberalisation”.

But the only announcement from all the Apec members was an “Actions Statement” that contained no such commitments. It mentioned topics such as sustainable growth, small businesses and technical cooperation.

The wrangling is similar to what has been seen at gatherings of Group of 20 and Group of Seven financial leaders, where statements were toned down to fit with the new US agenda.

China, putting itself forward as a global free trade champion in light of the US shift, is pushing an agreement to encompass the vast majority of Asian economies, known as the Regional Comprehensive Economic Partnership. AGENCIES

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.