SHADOW OVER TOKYO TALKS

New 11-member club risks getting bogged down by resistance from Canada

TRADE officials gathered in Japan yesterday for two days of talks to try to forge a trade pact that United States President Donald Trump abandoned last year, but the new 11-member club risks getting bogged down by resistance from Canada.

The member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, also known as TPP 11, reached a basic agreement on the pact in November.

But Canada is holding out to secure protection of its cultural industries, like movies, TV and music, and has said it will not be rushed into a deal that other members hope to conclude by March.

That is casting a shadow over a meeting of trade officials from member countries this week here and raises questions about the economic benefits of a pact that doesn’t bring Canada into the fold.

“There are still gaps, between Canada and other members,” said Kazuhisa Shibuya, Japan’s senior TPP official after the first day meetings.

The economic impact of the TPP would be “significantly further eroded” if Canada postponed its decision to join, said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.

After Trump pulled the US out of the agreement last year, Japan took a leading role in pushing for a replacement pact.

Along with Australia and Mexico, Tokyo has lobbied hard for the agreement, which aims to eliminate trading barriers and tariffs on industrial and farm products across the 11-nation bloc whose trade totalled US$356 billion (RM1.4 trillion) in 2016.

“Our strong preference is for all 11 countries to join the first wave, but our focus is on bringing a new TPP agreement into force as soon as possible with those who are ready to move,” said Australian Prime Minister Malcolm Turnbull here last week. Reuters