The eleven remaining Trans-Pacific Partnership countries are currently deciding what their next steps will be, as a result of the U.S. withdrawing from the agreement. To discuss what comes next, Chile has invited all countries involved and extended invitations to China and South Korea.
Foreign leaders made it known they are still pursuing the TPP and are not as interested in President Trump’s proposed alternative to the Asia-Pacific deal, which consists of new bilateral trade deals.
Many believe there is no reason why the deal shouldn’t move on without the U.S. Experts say the other countries could find a way to move forward and boost some economic gains while establishing new trade rules.
The possibility of China joining a multilateral deal may be an attractive option to the other countries. The biggest driver for most TPP participants was access to the U.S. market, which accounts for 69% for the combined GDP of the 12 countries. China’s 1.3 billion population and rising middle class could mean more exports of milk powder from New Zealand, palm oil from Malaysia and beef from Australia.
Written by Lacie Dotterweich