TPP Eleven Reached a Deal

Eleven countries that were remaining in a high-level free trade framework called Trans-Pacific Partnership decided on having a meeting for signing on new agreement at Chile in March. The agreement froze 22 points required by United States, which withdrew from the negotiation after inauguration of new America-First President, with expectation of US coming back. Like a little boy who easily overturned his own words, President Donald Trump indicated that US might return to the framework.

In the last meeting by the heads of delegation last November, the eleven parties agreed on freezing 20 points of US requirement in past TPP negotiation. However, Malaysia, Brunei, Vietnam and Canada demanded other points to be frozen.

Canada has been suffering from an agreement of excluding internet films from regulation on foreign movies, which had been led by US. Having English and French as official two languages, Canada had to protect its linguistic diversity. Other parties opposed that exception as an unfair regulation. It is supposed that all the parties will allow effective regulation with a supplemental document.

Vietnam demanded certain moratorium on trade sanction against violation of rules on labor market. Eleven parties settled Vietnam’s dispute with introducing voluntary abstention from applying the sanction. Two points demanded by Malaysia or Brunei were regarded as necessary for freezing. 22 points of freezing were prepared for possible coming back of US.

Japan was satisfied with the conclusion, because it could demonstrate its leadership in the negotiation without the main actor of the framework, US. “It is an epoch-making outcome for both Japan and the future of Asia-Pacific region,” told the head of Japanese delegation, Toshimitsu Motegi, after the deal was finalized. Japanese government recognizes the negotiation to have reached a goal with its alternative leadership.

As expected, Trump announced in a TV interview in Davos, Switzerland, that he would consider returning back to TPP framework, if the agreement would be improved from the previous one. He argued that current TPP agreement was terrible one and demanded eleven parties further openness of their markets for US exports. It is still unclear whether Trump will be satisfied with new agreement, or whether the eleven parties can accept renegotiation of settled agreement.

Leaving from TPP had been the top issue of Trump administration. He declared permanent withdrawal from the framework on the day one of his presidency. The eleven parties, however, remained in the negotiation without US, because they knew it was extremely ridiculous for US to withdraw from the framework US was definitely involved in for its own interest.