TPP Hopeless, Chile, Peru Considers Joining China-backed RCEPPosted: November 20, 2016
SCMP says in its report “Latin American economies look to China for free trade options”, that as Trump opposes TPP, Chile and Peru consider joining China-backed Regional Comprehensive Economic Partnership (RCEP) as they believe that their economies will be benefited by free trade that Trump opposes in his election campaign.
SCMP quotes Paulina Nazal Aranda, Chile’s vice-minister of trade, as saying that Chile had expressed interest in also joining the RCEP.
It says, “Peru, another signatory nation of the TPP, confirmed last week that it has started talks with China about joining the RCEP, though it still holds hopes for the TPP.”
TPP excludes China as Obama says that he wants to set international trade rules to prevent them from being set by China. However, China has expressed its interest in joining TPP without opposing the rules set by the US.
RCEP excludes the US, but China does not want to exclude the US so that in APEC summit last year China proposed the establishment of Free Trade Area Asian-Pacific (FTAAP) to include the US.
The US wants to contain China with its TPP, but China wants cooperation with the US because cooperation benefits both countries. Containing China, however, hurt the US itself. That is why both US presidential candidates Clinton and Trump oppose TPP.
Chinese leaders are wise to pursue win-win cooperation while Obama is stupid to have the desire of hurting his own country in order to hurt China. In fact, he is helping China to carry out its very difficult reform to enable China to conform to Obama’s trade rules. TPP in fact hurts other countries, especially India and has infused great stimulus into India in pursuing RCEP.
Comment by Chan Kai Yee on SCMP’s report, full text of which can be found at http://www.scmp.com/news/china/diplomacy-defence/article/2047728/latin-american-economies-look-china-free-trade-options