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HANOI/TOKYO: Remaining members of the Trans-Pacific Partnership (TPP) free-trade agreement are working on a statement to reaffirm their commitment to it despite the withdrawal of the US, sources close to the discussions said.
Talks are happening on the sidelines of an Asia-Pacific Economic Cooperation (APEC) meeting, the biggest trade gathering since US President Donald Trump upended the world order with his “America First” policy.
The competing visions are evident at this weekend’s APEC meeting of ministers from countries that account for well over 40 percent of world trade.
While new US Trade Representative Robert Lighthizer will hold bilateral talks with key countries, China will be pushing its favored Asian trade agreement as it puts itself forward as a global free-trade champion.
Meanwhile, Japan is leading the countries that still want to go ahead with a much more comprehensive TPP agreement, a deal Trump ditched in one of his first acts in office and which does not include China.
Sources close to the discussions said the so-called TPP-11 states — the 11 members left after the US withdrew — were planning a statement for Sunday that would say they were committed to moving ahead with TPP.
“There will be two main points: To aim for an early entry into force of the TPP-11 and to bear in mind an environment where a signatory country can return,” said one source close to the discussions who was not authorized to speak to the media.
The agreement is due to come into force next year.
Among the challenges is keeping on board Vietnam and Malaysia, who would have been big beneficiaries of the agreement if it included the US.
Vietnam would want to renegotiate requirements in areas like labor reform and intellectual property rights if it were to continue without US participation, said one Vietnamese official who declined to be identified.
Japan is still hopeful that the US can be brought back to the agreement.
In Hanoi, Lighthizer is due to hold bilateral meetings to start making official contact with key trade officials.
Nearly all the other 20 members of APEC had requested bilateral meetings, US officials said.
Main countries are China, Japan and South Korea, with which Trump wants to renegotiate a free-trade deal. Canada and Mexico will be at the Asia-Pacific meetings and are also in the North American trade area.
In other talks on the sidelines, China will be driving for progress on its favored trade deal for Asia: The Regional Comprehensive Economic Partnership (RCEP).
The free-trade agreement does not cover as many areas as the TPP deal or demand tough conditions for members on issues such as protecting intellectual property, labor rights or the environment.
Doubts over TPP have given greater impetus to discussions, which members hope to complete by the end of the year.
But officials said there remained significant points of disagreement in the talks between Southeast Asian countries, China, India, Australia, New Zealand, Japan and South Korea. The US has never been part of those discussions.