China left out of Trans-Pacific Partnership, but door left open for the future
Beijing had “put out feelers” about joining the pact in June but US President while not ruling out the possibility said it would take significant time and effort for China to make the difficult changes necessary to sign on to the TPP
The hard-won Trans-Pacific Partnership agreement is a boon for US efforts to exert influence in Asia amid increasing competition with China, which has been flexing its growing economic and military might in the region.
China, the world’s second-biggest economy, is noticeably absent from the 12-nation pact.
Japanese Prime Minister Shinzo Abe welcomed the TPP agreement on Monday as “a far-sighted policy for all participating countries that share the same values and are trying to build a free and fair economic zone”. He added: “This is a significant achievement not only for Japan, but also for the future of the whole Asia-Pacific region.”
Japanese carmakers and auto-parts manufacturers will likely benefit from the removal of tariffs. Japanese retailers also said they saw the TPP as potentially beneficial as partner countries lift or ease barriers on “service exports” and welcome foreign companies in their markets. However, Japan’s agriculture sector has been wary that U. food imports could hurt its business.
Nevertheless, in an editorial, Japan’s Yomiuri newspaper said the pact could have not just economic, but long-term “security” benefits.
“If the presence of the United States and Japan in the Asia-Pacific region is enhanced through the TPP, it will be able to contain China’s moves to pursue hegemonic influence in the region,” it said. It took note of the fact that China recently launched an Asian Infrastructure Investment Bank with 57 founding members including Malaysia, Singapore and four other TPP countries – an initiative that the US and Japan resisted.
The paper said a broad TPP agreement would help facilitate other negotiations concerning economic partnerships that Japan is seeking.
