Key’s ‘Trump Pacific Partnership’ joke has serious side for trade
- News Feed
- Tuesday, 29 November 2016
US president-elect Donald Trump isn’t enamoured with the Trans-Pacific Partnership. He vowed on the election stump to consign it to the dustbins of history, following other proposed trade deals which foundered because of the protectionist – and dare we say that word, isolationist – attitudes of politicians of the Trump genre.
Except, of course that there is actually no such thing as a Trump genre. He is maybe not entirely unique but very close to it. Even though he has targeted TPP again since the election there is still a lingering hope among other TPP nations he will back off slightly to allow a compromise.
That’s doubtful, but after the hard work put in by TPP leaders, notably Australia’s Malcolm Turnbull and NZ’s John Key, at the APEC summit in Perú a number of options present themselves (albeit weakly).
One is to go ahead with TPP absent the US, requiring a change in the rules and a partial re-write with all the difficulties that engenders. But do we need globalisation as such? It’s a rather vague term and relatively new to the general lexicon.
To build trade we need to trade actively. That’s what keeps our industry sector alive.
On the other hand, do we absolutely need to sign up with more rather than fewer partners in any one trade agreement?
It could be argued that TPP in its earlier manifestations without the US might have been a winner. But the US is a giant trading partner and any improved access is to the advantage of Australia, NZ and most other economies.
So is globalisation an elephant in the room rather than a mega-opportunity?
China made it clear during and prior to Apec it was keen to ramp up its free trade agreements with Australia and NZ; work has already begun on the latter. It is also signalling that it would like to work with other countries throughout the greater Asia Pacific region, taking a positive attitude towards agreements.
President Obama has become sensitive to the growing power of China in the region and TPP was seen as one way to maintain the existing balance.
But what if we look to helping develop a partnership of nations that espouses free trade without too many of the lobbyist-driven constrictions of TPP?
Well, the US isn’t the only country going all-out to protect local industry, agriculture and services. Japan and Canada for instance are also inclined that way, although both seem to be showing signs of willingness to at least part-open key sectors.
During Apec John Key joked about bringing Trump aboard by renaming TPP the Trump Pacific Partnership.
Nice try. Better though to step up traction on other bilateral arrangements and groupings.
