Abe warns TPP impasse would shift focus to China-inclusive trade pact

US President-elect Donald Trump’s administration should consider supporting a Beijing-backed free trade deal in the Asia-Pacific, state media said on Tuesday, adding that China would be relieved to see a rival USA -led trade deal wither under Trump.

Trump, who opposes the TPP trade pact, has won the United States presidential election, and several experts believe that the Republican victory would put an end to this trade agreement.

Over the weekend the Senate’s top Democrat Charles Schumer told union leaders the deal would not be ratified.

Though President-elect Donald Trump has been firmly against the Trans-Pacific Partnership, a senior House Republican is now saying the controversial trade deal may not be dead, just “on hold”.

After global and relentless protests against the now-dying U.S.Trans-Pacific Partnership, China is expected to seek support for a Beijing-led free trade area at the regional Asia-Pacific Economic Cooperation summit which kicks off Thursday in Peru.

The RCEP comprises Japan, China and 12 other Asian countries plus Australia and New Zealand.

Japan’s Prime Minister said yesterday (Nov 15) that it would be turning to the Regional Comprehensive Economic Partnership, also known as the RCEP. On Thursday, Trump will meet in NY with Japan’s Prime Minister Shinzo Abe who is traveling to a summit of Asia-Pacific leaders in Peru.

Rice made the appeal in an article to The National Interest magazine as the fate of the policy of putting USA foreign policy priority on Asia has been thrown into doubt with the surprise election of Donald Trump as Obama’s successor.

“We’ll have to see how ambitious the pact is”, Ferreyros said of RCEP. Peru and Chile are both party to the now dying TPP, and would likely be inclined to join China’s FTAAP.

But he said that the US Trade Representative would continue to work on broad trade agreements to end tariffs on environmental goods as well as a separate deal liberalising services trade. “If the US has a vision for what should be in a trade agreement, it makes more sense to include more countries in it”.

The recent presidential election in the United States may have opened up an opportunity for China at this forum of 21 economies. “Can they breathe life into it or find another form for it?” he said.

Mustapa said a clearer picture on the state of the TPP was expected to emerge during discussions on the sidelines of next week’s APEC Summit in Lima, the Peruvian capital.

He said if the TPP was not passed due to any reasons, it would be considered a setback, as countries spent much time and effort on the negotiation process.

“Until then, New Zealand will continue its own, well-proven path to openness and inclusiveness in the global trade arena”, says Mr McClay.