The Diplomat: Australia Keeps TPP Alive

Leaders of Japan and the United States, the leading economies that had negotiated the 12-nation Trans-Pacific Partnership, announced plans to pursue stronger bilateral ties. “Importantly, the joint statement also allowed for Japan to continue pursuing the TPP, even after [Donald] Trump’s January 23 decision to withdraw,” reports Anthony Fensom for the Diplomat, adding that Japan has invested more than $150 billion in foreign direct investment during the past year. “Trump said the United States would become ‘an even bigger player’ in trade, helped by an ‘incentive-based’ tax policy.” Australia, the 13th largest economy in the world, will continue to pursue the TPP with Canada and Mexico, ranked 10th and 15th, respectively, as well as economies like Malaysia, Chile, Peru and Vietnam – not among the world’s largest 35 economies, but with great potential for growth. The 10 small TPP economies combined are larger than the world’s third largest economy of Japan. Remaining TPP partners meet in March to talk about revising the trade pact without the United States. And parties to the larger Regional Economic Comprehensive Partnership, including China and India while excluding countries of the Americas, meets this month. The two trade pacts could be less contentious without the United States if the Asian partners can devise mechanisms for overcoming disparate levels of development and standards. – YaleGlobal