There is still no clarity on what’s to become of the Trans Pacific Partnership, the Pacific rim trade deal that would have been the world’s largest, covering roughly 40 per cent of global GDP. Had TPP proceeded as planned, as a 12-nation trade agreement, Vietnam was expected to reap the biggest gains from being afforded greater access to the US market.
Now Vietnam may want to follow the United States’ path out of the deal. With the US out, TPP just isn’t as lucrative for Vietnam. The deal for Vietnam was essentially it would implement difficult reforms on state-owned enterprises and labor and other areas in exchange for greater access to the US market, particularly for textiles and footwear.
Malaysia, too is having doubts about continuing with TPP. Meanwhile Peru and Indonesia are working on an alternative. Peru is working on a aggressive trade agenda, which includes the start of negotiations on a free trade agreement with Indonesia. Peru’s aggressive plans for trade also include efforts to reduce trade barriers between Australia, New Zealand, Singapore, Canada and the Pacific Alliance bloc including Peru, Mexico, Chile and Colombia.