11 countries sign Trans-Pacific Partnership without United States

Marie Harrington
March 10, 2018

After years of stalling and controversy, the Comprehensive and Progressive Trans-Pacific Partnership (CPTTP) has finally been signed in Chile, with Trade Minister David Parker describing it as a "fair deal".

Known as TPP-11, the newly created trade bloc does not include the United States, but links selected American, Asian and Pacific nations.

He said Malaysia still stands to gain from market access to countries like Canada, Peru and Mexico, despite the absence of the US.

The revised pact keeps most of the provisions, including tariff reductions, agreed in 2016 when US was still a member.

The new arrangement will kick into effect when six members have enacted it domestically, and it has been created to make it easy for the U.S. or another country to join.

"We are very hopeful like others that we will see the CP TPP coming into effect about the end of the year or shortly thereafter", said Australia Trade Minister Steven Ciobo.

In May 2017, foreign trade ministers of the Trans-Pacific Partnership (TPP) signatory countries agreed to assess the options to reach a new agreement following the United States' withdrawal.

It has also been reported that the United Kingdom is considering signing up to the trade deal after the country exits the EU.

More news: WMNF Celebrates International Women's Day on the airwaves

But the original Trans- Pacific Partnership, which included the United States, would have brought together 40 percent.

Richard N. Haass, president of the Council on Foreign Relations, said on Twitter Thursday, "Truly a sad and bad day for the United States, as TPP comes into force without us while USA deciding on which countries to apply unwarranted and ill-advised tariffs".

Yesterday, Trump went ahead with his threat to impose levies of up to 25% on steel and aluminium imports in a move that will impact the broader U.S. economy, decreasing demand - an assessment apparently echoed by the financial markets, which saw stocks tank following the announcement.

"As one of the pioneer members who has successfully negotiated the agreement 'on our terms, ' Malaysia should not miss the opportunity to grab the benefits of this agreement and efforts to complete the ratification process should be intensified", he said in a statement.

"New Zealand has to sell the things that we produce well to the rest of the world to pay for our cars and computers that we import".

"Most importantly, this agreement is the first of its kind to specifically address wine-related technical barriers to trade through the inclusion of a wine and spirits annex".

The CPTPP, as it looks to expand influence by adding other countries into its fold, will need to address other problems as well.

The revamped TPP also includes Brunei, Canada, Chile, Mexico, New Zealand, Peru, Singapore and Vietnam.

Other reports by TheSundaySentinel

Discuss This Article