Japan, Vietnam urge US to rejoin ‘very high-standard’ Pacific trade deal

Japan and Vietnam on Thursday urged the United States to rejoin a sprawling Pacific trade deal, almost two years after President Donald Trump’s withdrawal dealt a major blow to what would have been the world’s largest free trade pact.

Trump pulled out of the Trans-Pacific Partnership (TPP) deal in one of his first post-election moves as part of his “America First” clarion call, declaring the 12-nation trade pact a “job killer.”

The 11 remaining countries have pledged to move ahead with the deal, which could go into effect by the end of this year, although in a significantly watered-down version without the US.

They have kept a door open for Washington’s return, and have also not ruled out allowing other non-Pacific countries to join the deal.

Japan’s foreign minister on Thursday encouraged the US to come back to the pact, speaking at a regional World Economic Forum (WEF) where concerns over trade protectionism have dominated discussions.

“We believe TPP is still the best option for (the) United States,” Taro Kono said.

“It will be very attractive for American industries, American farmers to join it.”

Japan, the largest remaining economy in the TPP, has led the charge to keep it alive.

The newly rebranded deal, dubbed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which forms a market of 500 million people, could go into effect by the end of 2018, Kono added.

Vietnam’s foreign minister Pham Binh Minh echoed Kono’s appeal, calling the deal “a very high-standard agreement.”

Vietnam stood to be the biggest winner from US involvement before Trump’s withdrawal from the pact, which would have opened access to US markets for its cheap manufactured goods – from shoes and shirts to mobile phones and computer processors.

For smaller signatories like Vietnam, unfettered access to US markets was a major draw. In its original iteration, the free trade bloc would have made up 38 percent of the global economy. Today, the remaining signatories comprise about 13.5 percent.