Published: Mon, November 21, 2016
Economy | By Melissa Porter

No vote on Pacific trade deal before Trump takes office - McConnell

The deal, which President Obama hoped would be part of his legacy, was slammed by President-elect Donald Trump during the election campaign, and Republicans made it clear they wouldn't consider it during the lame duck session.

Senate Majority Leader Mitch McConnell had already signaled in August that the U.S. Senate would not vote on TPP this year. "It would be up to discussions with the new president".

The long-shot trade agreement faced widespread Democratic opposition on Capitol Hill and the environment for passing the deal only grew more toxic during the presidential campaigns.

Victoria University director of the Centre for Strategic Studies David Capie said a big part of the drawcard of TPP was the fact it included the USA, which New Zealand does not already have a free trade agreement with.

"In terms of the TPP agreement itself, Leader McConnell has spoken to that and it's something that he's going to work with the President-elect to figure out where they go in terms of trade agreements in the future", Mr Adeyemo said.

"At the end of the day I don't think Congress wants to be responsible for handing the keys to the castle to China", US Trade Representative Michael Froman said in July.

"As Trump adapts to being a president and no longer a combative outsider pushing into the U.S. political system, he may mallow and may find that after all, selective free trade agreements are a jolly good thing".

Peru will host the Asia-Pacific Economic Cooperation summit next week.

Besides Japan and the USA, the TPP includes 10 other countries: Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Given the United States and Japan, the world's biggest and third-largest economies, account for 60 per cent of the gross domestic product among the 12-strong TPP nations, the economic clout of a revised pact without America would be questionable, according to some analysts.

The TPP was one of two trade deals negotiated by the former Harper government.

"That would actually take a separate step".

The failure to pass the TPP deal, the biggest trade agreement in more than a decade, was a bitter defeat for Obama and it would also dent American prestige in the Asia-Pacific region, according to the Wall Street Journal.

"For quite some time TTIP will be in the freezer".

"China believes we should set a new and very practical working plan, to positively respond to the expectations of industry, and sustain momentum and establish a free trade area in Asia-Pacific at an early date", Li said. But it quickly lost support on both sides of the aisle.

The document said withdrawing from the massive free trade agreement with Japan and ten other Pacific Rim nations would be done within the first 100 days of a Trump administration.

The TPP would have included the USA and 11 countries in Asia, South America and the south Pacific, and was designed in large part to curb the growing economic influence of China.

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