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2011 November 23 - 29 TOP3 [ECONOMY]

Asian nations cool toward TPP

“To incorporate the growth of Asia” – This is the slogan the Japanese government has come up with to stress the need for Japan to gain from increased multinational free trade. However, countries participating in the Trans-Pacific Trade (TPP) negotiations from Asia are Singapore, Brunei, Vietnam, and Malaysia. In the recent Asia-Pacific Economic Corporation (APEC) conference held in Hawaii, many Asian states showed a cool attitude towards the TPP.

For example, Indonesia – with the largest population among the Association of Southeast Asian Nations (ASEAN) member states – announced that it will not join the TPP and instead will promote economic partnership with ASEAN members, Japan, China, South Korea, India, and two other countries. The United States will not be included.

China is distancing itself from the TPP as well. Assistant Minister of Commerce Yu Jianhua at a joint press conference after the APEC ministerial meeting on November 11 said, “Beijing had not been invited to join talks on the agreement in any manner.” This was a reaction to U.S. Trade Representative (USTR) Ambassador Ronald Kirk who was asking APEC members and regions to take part in the TPP.

The Chinese official went on to say that economic integration in the Asian region should be inclusive and transparent. Obviously, he was expressing the opinion that China is not happy with the U.S.-led TPP. He also warned against Japan’s eager willingness to be a TPP member, saying that Japan has also indicated that it wants to promote another regional integration mechanism such as a free trade agreement (FTA) with China and South Korea.

Chinese President Hu Jintao during his stay in Hawaii for the APEC conference said that China will support moves toward economic integration in the Asia-Pacific region on the basis of ASEAN plus three (Japan, China, South Korea), ASEAN plus six, and the TPP. He made clear that China does not want the U.S.-centric TPP to stand alone in the region.

ASEAN leaders in their summit meeting on November 17 agreed to establish an ASEAN Framework for a Regional Comprehensive Economic Partnership. They reconfirmed their commitment to achieve an ASEAN-led open economic integration in cooperation with countries outside the region. Economic integration led by only major countries is no longer acceptable in the region.