New Zealand PM Ardern wants the US to return to the Trans-Pacific Partnership deal

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the gold standard for promoting regional economic and trade ties, Ardern told the media after meeting with U.S. lawmakers in Washington on Wednesday (May 25, 2022).

The United States withdrew from the Trans-Pacific Partnership in 2017. After that, Japan and New Zealand, and other signatories of the agreement continued to promote the implementation of the agreement and renamed the agreement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

U.S. President Joe Biden officially unveiled the long-awaited IPEF, an Indo-Pacific economic framework seen as a counterweight to Chinese influence, during a visit to Japan earlier this week. A total of 13 countries were named as founding nations of the framework, including new Zealand.

In a fact sheet released at the same time, the White House said that the Indo-Pacific economic framework will strengthen the United States’ ties to this important region and create a stronger, fairer, and more resilient economy for the benefit of families, workers, and businesses in the United States and the Indo-Pacific region. , and clearly outlines technological innovation and the development of the global economy in the coming decades.

However, the Indo-Pacific economic framework currently does not explicitly include provisions to reduce tariffs and expand market access.

Ardern said the Indo-Pacific Economic Framework is a starting point for discussions on digital trade issues, climate change, and reducing trade frictions, but the CPTPP is the right platform if the U.S. seeks to develop economic ties with the region.

Ardern sought to expand exports to the US and attract more tourists to New Zealand during the US trip.

The Biden administration has not made returning to the Trans-Pacific Partnership a policy priority due to concerns about the impact on U.S. jobs. The deal has also been questioned by many members of Congress.

Singapore Prime Minister Lee Hsien Loong said in an interview with the Nikkei Shimbun a few days ago that Singapore also intends to join the US-led Indo-Pacific economic framework, but also supports China’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. He said China interacts better with the region according to common rules than it operates according to its own rules. Lee Hsien Loong also said that Singapore needs to strike a balance in its relations with the great powers and avoid being overly dependent on a single party.