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Future of TPP to be discussed in Hanoi

Released at: 14:13, 19/05/2017

Future of TPP to be discussed in Hanoi

Illustrative image (Source: ezlawblog.com)

Ministers from eleven signatories to TPP to discuss possible next steps in Hanoi on May 21.

by Van Long

Ministers from eleven countries that signed up for the TPP are scheduled to gather together in Hanoi on May 21.

According to a report from the Vietnam News Agency, during the meeting, to be co-chaired by Vietnam and New Zealand, the ministers will discuss the creation of new rules that would enable the US to easily return to the trade deal if circumstances were to change, or the possibility of putting the deal into effect without the US, as proposed by Japan.

Only Japan and New Zealand have ratified the pact to date. Others that had hoped to boost exports to the US may now be reluctant to do so under an eleven-member TPP, arguing that without the world’s largest economy the agreement would be of little benefit to their economies.

Canada and Mexico have been unwilling to irritate President Donald Trump by ratifying the TPP, as they stare down a possible renegotiation of the North American Free Trade Agreement (NAFTA) with Washington in the near future.

The TPP was signed by 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Under existing rules, the TPP requires ratification by countries accounting for 85 per cent of the combined GDP of the 12 signatories. The deal was therefore considered dead following the withdrawal of the US, as the country represents over 60 per cent of the trade bloc’s GDP.

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