Minister: Malaysia to pursue bilateral FTAs with Pacific partners if TPP fails

Were this to happen, South Korea would lose US$30 billion over the next five years, estimated the Korea Economic Research Institute in a recent study.

For Singapore alone, the disappearance of the TPP will not provide much harm as the Lion state has already in place FTAs with the U.S. and 10 of the 12 TPP countries, leaving Canada and Mexico outside the bilateral free trade which may be negotiated at a later date.

Japanese Prime Minister Shinzo Abe on Tuesday confirmed his nation is turning attention toward RCEP – which would in turn omit the U.S. That’s even as he plans to stop off in NY on Thursday en route to Lima to meet Trump and make a last-ditch sales pitch for the TPP.

“There will be no TPP without the US’ participation”, he said. And it was clear that the TPP was in trouble in 2015, when Fast Track authority for the TPP barely squeaked through Congress.

While the TPP was seen as a “symbol of US commitment to the East Asia region”, it was not immediately clear how big an impact Trump’s withdrawal could have on America’s role in region. That meant time to organize, organize, organize.

The TPP had been broadly welcomed by food makers, with United States meat, poultry and dairy sectors by-and-large approving of the increased access to overseas markets.

“But whatever Malaysia decides, we will look into the benefit of Malaysians and Bumiputera companies”, he said. The coalition that stopped the TPP is powerful and united and will fight forward to deliver that change.

On the trade front, other concerns lie in moves by a Trump administration to renegotiate “or even scrap” a Korea-U.S. free trade agreement (KORUS).

Peru, which will host the Asia-Pacific Economic Cooperation (APEC) meeting and is party to the TPP, has said that Pacific-rim countries can forge a new trade deal to replace the TPP that includes China and Russian Federation but not the United States.

Australia will now pursue other regional trade deals, such as ASEAN’s planned Regional Comprehensive Economic Partnership (RCEP), which will be a hot topic of discussion at the Asia-Pacific Economic Co-operation summit in Peru next weekend.

Minh said if the TPP is not passed due to any reasons, this is considered as a setback as countries had spent much time and effort on the negotiation process. “I’ve been a supporter of TPP, but TPP, as far as I can tell, is dead”.

President Barack Obama championed the 12-nation deal saying it would enable the United States to set the global trade agenda in the face of Chinese increasing economic clout.

The GDP of the USA alone constitutes about 60 per cent of the total GDP of the TPP members.

China is seen as an untapped frontier for USA capital markets participants, and it recently embarked on initiatives to loosen restrictions on domestic investors buying foreign-issued securities.

“Unlike the European liberals’ reaction in the last few days, Asians are going to accommodate rather than object”, Mohan said.