Australia ‘won't walk away’ from free trade despite TPP blow

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After US President Donald Trump's overnight decision to withdraw from the Trans-Pacific Partnership (TPP), Australian Trade Minister Steve Ciobo said that the country would work with the remaining TPP nations and look to other nations to salvage the deal.

US President Donald Trump speaks during a meeting in the Oval Office at the White House in Washington, DC on January 23, 2017. /CFP Photo‍

“We are not going to walk away from pursuing high quality trade deals which are good for Australian exports,” Ciobo told Sky News on Tuesday.

Following Trump's decision to axe America's involvement, leaving TPP in its current form “dead in the water”, the remaining nations have begun to discuss a potential replacement, as the Trump decision was “not unexpected.”

Ciobo expressed a possibility of a “TPP 12 minus one” plan. This plan may involve the remaining 11 signatories, and hopefully get off the ground as the Australian government has been in close contact with other TPP nations.

“I've had conversations with Canada, Japan, Mexico, New Zealand, Singapore and Malaysia. I know there have been conversations with Chile and Peru,” Ciobo told the Australian Broadcasting Corporation (ABC) on Monday.

Trade ministers from the Trans-Pacific Partnership (TPP) nations in Sydney on October 26, 2014. /CFP Photo

The trade minister also hinted at the possibility of introducing new nations into the agreement.

“There are quite a number of countries that have an interest in looking to see if we could make a 'TPP 12 minus one'. Certainly I know that Indonesia has expressed interest. And there would be scope for China if we're able to reformulate it to be a ‘TPP 12 minus one’.”

However, Ciobo indicated there may be some time before formal discussions, since US President Trump was also keen to “renegotiate” the existing North American Free Trade Agreement (NAFTA).

Australian Prime Minister Malcolm Turnbull in Parliament House, Canberra, Australia, on November 28, 2016. /CFP Photo

Despite the optimism from the Australian government, the federal opposition has urged the government to “move on” from the doomed multilateral trade deal.

Opposition spokesperson Jason Clare said: “Donald Trump's executive order means the TPP is now officially dead. It's time for (Australian Prime Minister) Malcolm Turnbull to wake up and move on, and develop a real economic plan for Australia.”

(Source: Xinhua)