Courtesy of Mish.
President Obama made a foolish decision to not welcome China in the formation of the Trans-Pacific Partnership (TPP).
It was ludicrous for Obama to leave China out of things. China is the second biggest economy in the world, third if you treat the EU as a block.
Had China been in the deal all along, we may not have seen the ludicrous provision that allowed companies to sue governments. That provision was one of the key reasons the deal failed.
With the election of Trump, TPP is officially dead. China, not the US, will be at the center of a new Asian trade pact.
TPP Dead, China Strives to Fill Void
On November 10, in the wake of Trump’s election, Beijing sought to fill the void left by TPP by reviving its proposed Free Trade Area of the Asia-Pacific pact.
The Financial Times reported Beijing Plans Rival Asia-Pacific Trade Deal After Trump Victory.
Xi Jinping is rekindling efforts to promote a rival to the US-led Trans-Pacific Partnership trade agreement in the wake of Donald Trump’s election victory, Chinese officials said on Thursday.
With Mr Xi set to travel to Peru this month for the annual Asia-Pacific Economic Co-operation summit, Li Baodong, vice-foreign minister, said China’s plan could fill the void. Chinese officials have previously sought to promote the proposal at Apec, only to encounter resistance from US officials who wanted to prioritise TPP negotiations.
“Protectionism is rearing its head and the Asia-Pacific region faces insufficient growth momentum,” Mr Li said at a briefing on China’s plans for Apec, which starts next weekend. “China believes we should set a new plan to respond to the expectations of industry and sustain momentum for the early establishment of a free trade area.”
US officials have warned for months that the failure of the TPP would open the door to China to promote its own trade agreements.
“We are seeing that play out in real time,” Mike Froman, the US trade representative, said in an interview this week. “We are the only ones who are going to be left on the sidelines as others move forward if [TPP] doesn’t happen.”
China’s efforts have been focused on wrapping up talks over a deal known as the “Regional Comprehensive Economic Partnership” with the 10 members of Asean and other countries including Australia and India.
Australia Snubs Obama, Dumps TPP
