January 23, 2017

TPP: Government scrambles to salvage Trans-Pacific Partnership after Donald Trump pulls US out

The Federal Government is scrambling to rethink the Trans-Pacific Partnership (TPP) after President Donald Trump pulled the US out of the Asian trade deal.

Now Prime Minister Malcolm Turnbull is instead hoping the remaining 11 countries can salvage the deal, though he said there was potential for the US to return to the table in the future.

Mr Trump signed an executive order overnight to pull the US out of the 12-country agreement, which could have solidified his country's leadership in the Asia-Pacific.

Mr Trump described the deal — which would have covered nearly 40 per cent of the global economy — as a "rape" of his country.

Mr Turnbull said the withdrawal was a "big loss", but not necessarily the end of the deal.

"It is possible that US policy could change over time on this, as it has done on other trade deals," he said.

"There is also the opportunity for the TPP to proceed without the United States. I've had active discussions with other leaders as recently as last night."

The Government had been pushing hard for Parliament to confirm the deal as soon as possible, but Trade Minister Steve Ciobo now said the Government would keep its options open.

"It is a case of being an ongoing discussion and obviously when the time is right, we'll have a look at the best way forward," he said.

"We are not going to walk away from pursuing high-quality trade deals."

Mr Ciobo said there was also potential for countries such as China to join the TPP.

"The original architecture was to enable other countries to join," he said.

"Certainly I know Indonesia expressed a possible interest and there would be scope for China if we were able to reformulate it."

Japan is the only country to ratify the deal to date, with Prime Minister Shinzo Abe reiterating his commitment to the TPP during a phone call with Mr Turnbull last night.

Opposition Leader Bill Shorten said the deal was "not going to see the light of day".

Mr Shorten said pursuing the agreement on the hopes that the US would change its mind was "the peak of delusional absurdity".

"Ever since Donald Trump got elected back in November, Mr Turnbull should have realised that the Trans-Pacific Partnership was dead," he said.

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