Tag Archives: Trans-Pacific Partnership

Trump meets Japan, Australia leaders over trade, North Korea threat

U.S. President Donald Trump holds a trilateral meeting with Japan's Prime Minister Shinzo Abe and Australia's Prime Minister Malcolm Turnbull alongside the ASEAN Summit in Manila, Philippines November 13, 2017.

MANILA (Reuters) – U.S. President Donald Trump raised North Korea’s missile tests during talks on Monday with the prime ministers of Japan and Australia, and said “a lot” of progress had been made in negotiations on trade.

On the sidelines of a summit of East and Southeast Asian leaders in Manila, Trump met with Japan’s Shinzo Abe and Australia’s Malcolm Turnbull, and said discussions at the meeting would include tensions on the Korean Peninsula and trade.

In brief remarks prior to news media being ushered out of the meeting, Turnbull said North Korea’s “recklessness” needed to be stopped, while Abe said the most immediate challenge was to ensure regional peace and stability.

Following the meeting, the White House said “the three leaders reaffirmed their commitment to maintaining maximum pressure on North Korea in the effort to denuclearize the Korean Peninsula.”

“They also discussed expanded security cooperation for enhanced deterrence and defense against North Korean aggression,” the White House said in a statement.

The three men also discussed the need for “free and open” trade in the Indo-Pacific region and “the need to pursue fair and reciprocal trade,” the White House added.

Trump, who campaigned heavily on U.S. trade issues, made pulling out of the Trans-Pacific Partnership (TPP) Asian trade deal one of his first acts in office. His administration has instead pledged to reach bilateral pacts with individual nations.

Countries remaining in the pact have said the deal is advancing without the United States.

 

(Reporting by Steve Holland; Writing by Martin Petty and Susan HeaveyEditing by Raju Gopalakrishnan and Jonathan Oatis)

 

Trans-Pacific trade deal advances without United States

Trans-Pacific trade deal advances without United States

By Kiyoshi Takenaka and Mai Nguyen

DANANG, Vietnam (Reuters) – Countries in the Trans Pacific Partnership (TPP) trade deal have agreed on the core elements to move ahead without the United States, officials said on Saturday, after last-minute resistance from Canada raised new doubts about its survival.

Taking the agreement forward is a boost for the principle of multilateral trade pacts after U.S. President Donald Trump ditched the TPP early this year in favor of an “America First” policy he believes would save U.S. jobs.

Talks – often heated – have been held on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit in the Vietnamese resort of Danang, where Trump and other leaders held their main meeting on Saturday.

“We have overcome the hardest part,” Vietnam’s trade minister, Tran Tuan Anh, told a news conference.

The agreement, which still needs to be finalised, would now be called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he said.

Japanese Economy Minister Toshimitsu Motegi said he hoped that moving ahead with the deal would be a step towards bringing back the United States.

Partly to counter China’s growing dominance in Asia, Japan had been lobbying hard for the TPP pact, which aims to eliminate tariffs on industrial and farm products across the 11-nation bloc whose trade totaled $356 billion last year.

Some 20 provisions of the original agreement were suspended. Those included some related to protecting labor rights and the environment, although most were related to intellectual property – one of the main sticking points after the U.S. withdrawal.

“The overall impact on most firms is quite modest,” said Deborah Elms of the Asian Trade Center think-tank, adding that the new version was “essentially identical to the original document”.

DOUBTS

Any kind of deal looked doubtful on Friday, when a summit of TPP leaders was called off after Canadian Prime Minister Justin Trudeau did not attend. Canada’s trade minister later blamed Trudeau’s absence on “a misunderstanding about the schedule”.

Canada, which has the second-biggest economy among remaining TPP countries after Japan, had said it wanted to ensure an agreement that would protect jobs.

Canada’s position has been further complicated by the fact that it is simultaneously renegotiating the North American Free Trade Agreement (NAFTA) with the Trump administration.

Speaking to reporters on Saturday, Trudeau said though Canada was pleased with the progress made on TPP, there was “still more important work to be done.”

Trudeau said Canada will always be “extremely closely linked to the American economy” but there was a need to diversify trade through other deals.

NAFTA talks with the United States were not affecting Canada’s stance on TPP negotiations, he said.

In a speech in Danang, Trump sent out a strong message that he was only interested in bilateral deals in Asia that would not disadvantage the United States.

Chinese President Xi Jinping used the same forum to stress multilateralism and said globalisation was an irreversible trend.

China had noted that the 11 TPP countries had made some progress on the deal, but it “hasn’t paid too much attention” because it is focused on APEC work during the meeting, Zhang Jun, Director General of the Department of International Economic Affairs of China’s Foreign Ministry, told reporters.

He said all trade arrangements in the region should promote openness and inclusiveness, with no “exclusive clubs”.

Zhang said the Beijing-backed Regional Comprehensive Economic Partnership (RCEP) trade pact will not be impacted by TPP, to which China is not party. The two trade deals are not mutually exclusive, and some countries would be members of both.

‘RAPID, COMPLEX CHANGES’

The APEC leaders met in closed sessions on Saturday, pausing for the traditional “family photograph”, taken above the South China Sea.

At the start of the meeting, Vietnamese President Tran Dai Quang noted APEC’s success in removing barriers to trade – as well as the new uncertainty in the world.

“We have witnessed changes more rapid and complex than we expect,” he said in opening remarks.

APEC trade and foreign ministers released a joint statement on Saturday, three days later than planned because of wrangling over customary language the United States wanted to change.

The statement still refers to free and open trade, but it also refers to fair trade and to members “improving adherence to rules agreed upon”.

A reference to strengthening the multilateral trading system was dropped. The ministers also said they would work to improve the functioning of the World Trade Organization – which Trump criticized in Friday’s speech.

Later, leaders of the 21 APEC economies agreed to address “unfair trade practices” and called for the removal of “market distorting subsidies,” in contrast to communiques they have issued in the past.

(Additional reporting by Michael Martina and A. Ananthalakshmi in DANANG, David Ljunggren in OTTAWA; Writing by Matthew Tostevin; Editing by Stephen Coates and Ros Russell)

Mike Pence to tour Asia next month amid security crises

U.S. Vice President Mike Pence speaks about the American Health Care Act during a visit to the Harshaw-Trane Parts and Distribution Center in Louisville, Kentucky, U.S

JAKARTA (Reuters) -U.S. Vice President Mike Pence will visit Japan and Indonesia as part of an Asian tour next month, sources said on Monday, amid concerns the Trump administration is rolling back Barack Obama’s “pivot to Asia.”

U.S. President Donald Trump has already withdrawn from the Trans-Pacific Partnership (TPP) trade agreement, which was seen as an economic pillar of the strategy.

A Trump administration official told Reuters: “The vice president is going to Asia next month I believe.”

The tour will include South Korea and Australia, the Nikkei Asian Review reported, with North Korea’s missile and nuclear programs and South Korea’s political crisis likely topics for discussion.

China has been infuriated by South Korea’s plan to deploy a U.S. missile defense system targeted at the North Korean threat. South Korea is also going through political turmoil after a court removed President Park Geun-hye from office over a graft scandal.

Pence is also expected to visit Tokyo for a U.S.-Japan economic dialogue, according to a source familiar with the matter.

The visit will come as North Korea’s latest missile launches and the assassination in Malaysia of North Korean leader Kim Jong Un’s estranged half-brother add urgency to the region’s security.

It will also follow this month’s trip by U.S. Secretary of State Rex Tillerson to Japan, South Korea, and China.

The TPP had been the main economic pillar of the Obama administration’s pivot to the Asia-Pacific region in the face of a fast-rising China.

Proponents of the pact have expressed concerns that abandoning the project, which took years to negotiate, could strengthen China’s economic hand in the region at the expense of the United States.

Indonesia’s chief security minister said Pence would meet President Joko Widodo to discuss terrorism and other security issues.

Indonesia has the world’s largest Muslim population and has recently grappled with a series of low-level militant attacks inspired by Islamic State.

“We discussed the planned visit of U.S. vice president Mike Pence to Indonesia and the strategic problems that can be on the agenda to discuss with our president,” chief security minister Wiranto told reporters after meeting the U.S. ambassador to Jakarta.

He added that no dates have been finalized.

In Indonesia, Pence is also expected to discuss a brewing contract dispute between the government and American mining group Freeport McMoRan Inc, said two Indonesian government sources.

Freeport has threatened to take the Indonesian government to court over newly revised mining regulations that have prompted a major scale-back in its operations in the eastern province of Papua.

(Reporting by Agustinus Beo Da Costa and Kanupriya Kapoor; Additional reporting by Malcolm Foster in Tokyo and David Brunnstrom in Washington; Writing by Kanupriya Kapoor; Editing by Nick Macfie and Jeffrey Benkoe)

Trump pulls U.S. out of Pacific trade deal, loosening Asia ties

President Donald Trump holds up executive order

By Roberta Rampton and Steve Holland

(Reuters) – U.S. President Donald Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday, distancing America from its Asian allies as China’s influence in the region rises.

Fulfilling a campaign pledge to end American involvement in the 2015 pact, Trump signed an executive order in the Oval Office pulling the United States from the 12-nation TPP.

“Great thing for the American worker,” Trump said as he signed the order on his third full day in office. The Republican says the trade deal would have damaged U.S. manufacturing.

The accord, backed heavily by U.S. business, was negotiated by former President Barack Obama’s administration but never approved by Congress. It had been the main economic pillar of the Obama administration’s “pivot” to the Asia-Pacific region to counter China.

Trump has sparked worries in Japan and elsewhere in the Asia-Pacific with his opposition to the TPP and his campaign demands for U.S. allies to pay more for their security.

Harry Kazianis, Director of Defense Studies at the Center for the National Interest think tank in Washington, said Trump must now find an alternative way to reassure allies in Asia.

“This could include multiple bilateral trade agreements. Japan, Taiwan and Vietnam should be approached first as they are key to any new Asia strategy that President Trump will enact,” he said.

U.S. BUSINESS LEADERS

The new president also met with a dozen American manufacturers at the White House on Monday, pledging to slash regulations and cut corporate taxes, but warning them he would take action on trade deals he felt were unfair.

Trump, who took office on Friday, has promised to bring manufacturing plants back to the United States – an issue he said helped him win the Nov. 8 election. He has not hesitated to call out by name companies that he thinks should bring outsourced production back home.

He said those businesses that choose to move factories outside the country would pay a price. “We are going to be imposing a very major border tax on the product when it comes in,” Trump said.

Trump asked the group of chief executives from companies including Ford, Dell Technologies, Tesla and others to make recommendations in 30 days to stimulate manufacturing, Dow Chemical CEO Andrew Liveris told reporters.

Liveris said the CEOs discussed the border tax “quite a bit” with Trump, explaining “the sorts of industry that might be helped or hurt by that.”

“Look: I would take the president at his word here. He’s not going to do anything to harm competitiveness. He’s going to actually make us all more competitive,” Liveris said.

At a portion of the meeting observed by reporters, Trump provided no details on how the border tax would work. The U.S. dollar fell to a seven-week low against a basket of key world currencies on Monday and global stock markets declined amid investor concerns about Trump’s protectionist rhetoric.

“A company that wants to fire all of its people in the United States, and build some factory someplace else, and then thinks that that product is going to just flow across the border into the United States – that’s not going to happen,” he said.

CUT TAXES AND REGULATIONS

The president told the CEOs he would like to cut corporate taxes to the 15 percent to 20 percent range, down from current statutory levels of 35 percent – a pledge that will require cooperation from the Republican-led U.S. Congress.

But he said business leaders have told him that reducing regulations is even more important.

“We think we can cut regulations by 75 percent. Maybe more,” Trump told business leaders.

“When you want to expand your plant, or when Mark wants to come in and build a big massive plant, or when Dell wants to come in and do something monstrous and special – you’re going to have your approvals really fast,” Trump said, referring to Mark Fields, CEO of Ford, who sat around the boardroom-style table in the Roosevelt Room.

Fields said he was encouraged by the tone of the meeting.

“I know I come out with a lot of confidence that the president is very, very serious on making sure that the United States economy is going to be strong and have policies – tax, regulatory or trade – to drive that,” he said.

Trump told the executives that companies were welcome to negotiate with governors to move production between states, but Trump was scheduled to hold a meeting later on Monday with labor leaders and U.S. workers, the White House said.

Between winning the presidential election in November and taking office, Trump hosted a number of U.S. CEOs in meetings in New York, including business leaders from defense, technology and other sectors. He also met with leaders of several labor unions, including the AFL-CIO.

(Additional reporting by David Brunnstrom, Doina Chiacu, Susan Heavey, Ayesha Rascoe and David Shepardson)

Obama, Singapore leader push Pacific trade deal in state visit

Obama and Loong discussing Trans-Pacific Deal

By Timothy Gardner and Ayesha Rascoe

WASHINGTON (Reuters) – President Barack Obama welcomed Singapore’s prime minister for a state visit on Tuesday with a major trade deal and China’s development of islands in the South China Sea at the top of their agenda.

Both the United States and Singapore are signatories to the 12 nation Trans-Pacific Partnership (TPP), which Obama hopes Congress will approve before he leaves office in January.

Obama and Prime Minister Lee Hsien Loong touched on the trade issue at the opening ceremony for Lee’s visit, which is the first official one by a prime minister from Singapore since 1985.

“We stand together for a regional order where every nation large and small plays and trades by the same rules,” Obama said.

Lee said TPP would be a major trading group linking both sides of the Pacific. “Not only will the TPP benefit American workers and businesses, it will send a clear signal and a vital signal that America will continue to lead in the Asia Pacific and enhance the partnerships that link our destinies together,” he said.

The TPP faces a battle in Congress. Some U.S. voters blame trade deals for shutting factories, shipping jobs overseas and favoring corporations over the environment. The deal also is opposed by presidential candidates Hillary Clinton, a Democrat, and Donald Trump, a Republican.

Obama believes the TPP will fix problems in a previous trade deal, the 1994 North American Free Trade Agreement, and will create jobs by allowing people around the world to buy U.S. products. The TPP aims to liberalize commerce in 40 percent of the world’s economy and would be a check against China’s influence in Asia.

Also on the agenda during Lee’s visit will be China’s build up of islands in the South China Sea. China claims most of the energy-rich waters through which trillions of dollars worth of shipping trade passes annually and has been fortifying islands in the sea. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims there.

China has accused the United States of fuelling tensions in the region with patrols and exercises.

Singapore is not a claimant to the South China Sea, but the tiny city-state has the largest defense budget in Southeast Asia at a time when nations are stepping up their military spending in response to China’s assertiveness in the region.

(Reporting by Timothy Gardner; Editing by Bill Trott)