Australia and New Zealand to pursue 'TPP 12 minus one'

Australia and New Zealand say they are hopeful of pressing ahead with the Trans-Pacific Partnership trade deal, despite America's formal withdrawal.

The US-led 12-nation agreement was set to cover 40% of the world's economic output.
Pulling out of the TPP was one of Mr Trump's first executive orders and fulfils a long-held campaign promise.

Australia has already devised a name for a possible new agreement: TPP 12 Minus One.
The country's trade minister Steve Ciobo said Australia would not abandon the TPP just because it would require "a little bit of elbow grease" to keep it alive.

Meanwhile China, which was not part of the deal, hinted it may look to take advantage of TTP's collapse saying it was in favour of "open and transparent regional economic arrangements".

The trade agreement was negotiated by former US President Barack Obama and was aimed at deepening economic ties between member its countries, which were Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.

So what now for these countries - and indeed for China?

Australia: Holding out hope for a so-called 'TPP minus one'

Australia, among other nations, is looking for ways to salvage the TPP without the US.

Mr Ciobo was in Switzerland last week to discuss new deals at the World Economic Forum in Davos.

"I've had conversations with Canada, with Mexico, with Japan, with New Zealand, with Singapore, Malaysia," he told the Australian Broadcasting Corporation (ABC) from New York on Monday.

"I know that there's been conversations that have been had with Chile and with Peru. So there's quite a number of countries that have an interest in looking to see if we can make a TPP 12 minus one work," he said.

Mr Ciobo also said the original architecture of the TPP was designed to enable other countries to join.

"Certainly I know that Indonesia has expressed a possible interest and there would be scope for China if we were able to reformulate it to be a TPP 12 minus one for countries like Indonesia or China or indeed other countries to consider joining and to join in order to get the benefits that flow as a consequence," he said.

New Zealand: Hopeful for TPP, but eyeing one-on-one deals

New Zealand Prime Minister Bill English has said he is hopeful of keeping a free trade deal alive with remaining members of the TPP agreement, while the country's trade minister Todd McClay told local media he expected TPP ministers would meet in the coming months to navigate a way forward.

Like his Australian counterpart, Mr McClay said he had met with a number of TPP member countries in Davos.

"New Zealand's economy depends upon fair access to overseas markets. We will continue to advocate for the benefits of trade liberalisation on the world stage," he said.

The country is also looking to hammer out bilateral deals with other countries and has recently been to the Middle East, promoting key New Zealand products including dairy.

Last week, Mr McClay confirmed New Zealand and Sri Lanka would move ahead with discussions on new trade and investment opportunities, including a free trade agreement between the two countries.

And the minister has said trade relations with the UK are in good shape, with an agreement in place to try and ensure there is no disruption to bilateral trade between New Zealand and Britain in the wake of Brexit.