It would have been the largest free trade zone in the world. Twelve Pacific countries had agreed to the TRANS-Pacific partnership (TPP) together. But on Monday, the new US President, Donald Trump signed a decree for the withdrawal of the USA from the contract. The United States alone make up approximately 60 percent of the economic performance of all TPP signatory countries, according to questionable the future of the Treaty.
Now, Australia is trying to save the agreement without the United States. The Australian government leader Malcolm Turnbull said the withdrawal of the USA is undoubtedly a great loss. He had but spoken with his colleagues, Shinzo Abe (Japan), Bill English (new Zealand) and Lee Hsien Loong (Singapore), TTP without the United States. “There is certainly the possibility that China’s TPP accession,” said Turnbull.
The Australian Minister for trade Steven Ciobo said the TV channel ABC, Japan, Australia and other countries wanted to hold on to the already negotiated points. Accordingly, his country had already spoken with Canada, Mexico, Japan, new Zealand, Singapore, Malaysia, Chile, and Peru. These are nine of the remaining eleven TPP countries, including Vietnam and Brunei.
US-exit is “a great shame”
Now we must see whether the TPP could function as a Convention of “12 minus 1″countries. Ciobo was also open for the entry of other States and calling China and Indonesia. The structure of the agreement had already been so, that you could take in further countries, said Ciobo. May be the contract had to be negotiated but also on a larger scale.
According to the Japanese news Agency Jiji Press Japan hopes to be able to the USA to rethink the move. Accordingly, Finance Minister Taro Aso said that they wanted to promote understanding for the “strategic and economic importance” of the TPP. Foreign Minister Fumio Kishida was quoted as saying that the US had benefited after the war, very from free trade. It was important that Japan and the United States ed next to each other.
Actually, TPP has been used as a counter-weight to the large influence of the people’s Republic of the Pacific, designed by the US exit, the opposite is even possible. Said that Trumps decision, Australia’s trade Minister Ciobo: “This is a great shame, but not unexpected.”
One of the difficulties that the rescue attempt is that Trump wants to renegotiate the North American free trade agreement (Nafta) with Canada and Mexico. Probably needs to be there, found a conclusion, before it goes to the TPP-rescue, said Ciobo. Experts anticipate that the Nafta will drag the negotiations on for years.
Further discussions in the coming months
The TPP agreement was signed last year out of twelve countries from the Asia-Pacific region including the United States, but is not yet in force. Be the completion of a centerpiece of the Agenda of Trumps predecessor, Barack Obama, wanted to strengthen the economic ties the United States to Asia and, thus, the influence of the United States. So far, only the Japanese Parliament has ratified the agreement.
By TPP should be about the disappearance of 18,000 customs regulations. The free trade zone would have a combines countries with very different economic strength. Critics feared that these differences lead to a downward spiral in the wages of workers, because the production of goods within the free trade zone to migrate to more favorable regions.
Further conversations about the future to give it, according to new Zealand trade Minister Todd McClay in the coming months. He had agreed last week at the world economic forum in Davos, already with some counterpart. “The agreement still has value as a free-trade agreement,” said McClay.