Pacific Rim Ministers meet in Hanoi, seek to revive TPP

In a stormy first foray overseas for Robert Lighthizer, the new U.S. Trade Representative failed to get Asian and Pacific countries to back the Trump administration’s “fair trade” agenda as the two sides disagreed over protectionism.

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.

Mr Trump signalled in January he would block the passage of the 12-nation pact in order to protect American jobs.

New Zealand, Australia and Japan worked behind-scenes on the sidelines of the APEC meeting to convince countries like Vietnam and Malaysia to agree to revive the TPP.

“The ministers tasked their senior trade officials to engage to take forward the preparation” of assessments of options to achieve a comprehensive and high-quality deal, a statement released after their meeting in Hanoi said.

Vietnam and Malaysia had been expected to be beneficiaries from the original TPP with greater access to US markets and investments.

Some TPP provisions would apply to all countries including the United States whether or not they were TPP parties, such as greater transparency around Pharmac decisions or extending copyright from 50 years to 70 years.

A statement from the group said their work would address “concern about protectionism” and maintaining open markets.

Fears of protectionism have grown under the Trump presidency, and the gathering in Hanoi has done nothing to quell them.

US President Donald Trump has withdrawn the US from the TPP, leaving the 11 countries left wondering what to do next. “But I firmly believe there is economic benefit to all of the remaining 11 countries through TPP, and most importantly there is a strategic reason that we should continue to consider TPP”.

Lighthizer, a 69-year-old trade lawyer who has a reputation as a tough negotiator stretching back to the Reagan era, was only confirmed by the Senate as US trade representative on May 11.

Ministers from 16 Asia-Pacific countries are expected to agree to conclude a regional free trade deal as soon as possible when they wrap up their meeting on Monday in Hanoi.

The minister said this would be an open agreement that would enable other countries to participate at appropriate times and under conditions that can preserve the high standards of the TPP, including the return of the United States.

“The TPP 11 can make their own decisions, the USA 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.

Asked why the United States was against using language opposing protectionism, he said it favoured free trade, but would defend against unfair trade.

Initially spearheaded by the United States, the deal was broadly acknowledged as a vehicle for the country to influence the rules of 21st century trade. It is not as exhaustive as the TPP deal and doesn’t have its strong protections for intellectual property or for labor rights and the environment.

Mr Ciobo said that, rather than following TPP critics into proclaiming the trade talks finished and a waste of effort, the meeting showed “calmer heads have prevailed”.

Trump withdrew from the TPP in one of his first acts in office.

RCEP, on the other hand, benefits from the backing of China, whose regional dominance has gained greater momentum with the policy shift in the United States and its own Belt and Road initiative to extend its global influence.

The grouping has consistently stated support for free trade, a point emphasised by the Vietnamese hosts on Saturday.

Source: PPP Focus