Page 7 - SCBJ-201701
P. 7
January-February 2017
Phạm Binh Minh stated that if the TPP is not ratified, it will be summit in Lima, Peru on November Photo from bing.com
considered a setback, as countries spent much time and effort on 19-20. China’s President Xi Jinping
the negotiation process. However, he noted that besides the TPP, is expected to garner support for the RCEP from Asia-Pacific
Vietnam has concluded FTAs with many other partners, including countries during the summit.
the European Union (EU). Deputy Minister of Industry and
Trade Do Thang Hai said that with or without the TPP, Vietnam’s Unlike most other free trade agreements, the TPP included some
policy towards international economic integration will remain special provisions on areas such as labor standards, governance
unchanged. and transparency standards, and environmental and intellectual
property protection. RCEP, on the other hand, does not include
An ardent supporter of the TPP, Singaporean Prime Minister provisions that emphasize protection of intellectual property,
Lee Hsien Loong has stated that he feels “disappointed that the free flow of information or the leveling the field between private
TPP looks very unlikely, or will not be passed, or ratified now” businesses and state-owned enterprises.
as reported by The Straits Times. The newspaper quoted him
referring to Trump: “He had no sympathy for the TPP at all and With the dimmed prospects of the TPP, it is now possible that
I think that’s a disappointment to all of us who worked so hard to countries, such as Vietnam and Malaysia, which had made
negotiate the TPP”. In reply to queries if the TPP could be salvaged substantial compromises on issues such as labor rights, will now
if its terms are renegotiated or possibly changed to include have to move on to other deals. The RCEP, for instance, could be
countries like China, Lee said, “It’s not so easy to say we change a viable alternative for Vietnam in the event that the TPP fails
the terms, what are you going to change?… And if you bring in a to go ahead. Vietnam stands to gain from increased sourcing of
new country, it would be a completely new deal altogether because production from such RCEP member countries as Japan, South
a new country, particularly if it’s a big one, is not going to sign Korea and China.
on to everything which has already been agreed before they were
participants”. Like Vietnam, countries involved in the TPP will have Plan B’s.
However, as New Zealand’s ambassador to the US remarked
The Road Ahead recently, “The tragedy would be that the Plan B’s we have would
not include the United States”.
China is likely to gain from potential US abdication of the TPP.
China is the key driver behind the Regional Comprehensive Since its establishment in 1992, Dezan Shira & Associates
Economic Partnership (RCEP), a trade agreement between the has been guiding foreign clients through Asia’s complex
10 members of ASEAN, as well as Australia, China, India, Japan, regulatory environment and assisting them with all aspects of
New Zealand and South Korea. In the event that the TPP fails, the legal, accounting, tax, internal control, HR, payroll and audit
momentum towards the RCEP is likely to gain strength as China is matters. As a full-service consultancy with operational offices
likely to push for a successful conclusion. across China, Hong Kong, India and emerging ASEAN, we are
your reliable partner for business expansion in this region and
Japan, a key US ally who viewed the TPP as an effective mechanism beyond.
to contain China’s growing economic clout in the region, has
indicated willingness to turn towards the RCEP. Japanese Prime For inquiries, please email us at info@dezshira.com. Further
Minister Shinzo Abe has recently stated that there is now “no information about our firm can be found at: www.dezshira.com
doubt there would be a pivot to the RCEP if the TPP doesn’t go
forward”. He added that Japan “will shift focus to RCEP should
the TPP not go ahead”. Leaders of Asia-Pacific countries, including
the US, Japan, Australia and China, are scheduled to meet during
the upcoming Asia-Pacific Economic Cooperation (APEC) annual
5
Phạm Binh Minh stated that if the TPP is not ratified, it will be summit in Lima, Peru on November Photo from bing.com
considered a setback, as countries spent much time and effort on 19-20. China’s President Xi Jinping
the negotiation process. However, he noted that besides the TPP, is expected to garner support for the RCEP from Asia-Pacific
Vietnam has concluded FTAs with many other partners, including countries during the summit.
the European Union (EU). Deputy Minister of Industry and
Trade Do Thang Hai said that with or without the TPP, Vietnam’s Unlike most other free trade agreements, the TPP included some
policy towards international economic integration will remain special provisions on areas such as labor standards, governance
unchanged. and transparency standards, and environmental and intellectual
property protection. RCEP, on the other hand, does not include
An ardent supporter of the TPP, Singaporean Prime Minister provisions that emphasize protection of intellectual property,
Lee Hsien Loong has stated that he feels “disappointed that the free flow of information or the leveling the field between private
TPP looks very unlikely, or will not be passed, or ratified now” businesses and state-owned enterprises.
as reported by The Straits Times. The newspaper quoted him
referring to Trump: “He had no sympathy for the TPP at all and With the dimmed prospects of the TPP, it is now possible that
I think that’s a disappointment to all of us who worked so hard to countries, such as Vietnam and Malaysia, which had made
negotiate the TPP”. In reply to queries if the TPP could be salvaged substantial compromises on issues such as labor rights, will now
if its terms are renegotiated or possibly changed to include have to move on to other deals. The RCEP, for instance, could be
countries like China, Lee said, “It’s not so easy to say we change a viable alternative for Vietnam in the event that the TPP fails
the terms, what are you going to change?… And if you bring in a to go ahead. Vietnam stands to gain from increased sourcing of
new country, it would be a completely new deal altogether because production from such RCEP member countries as Japan, South
a new country, particularly if it’s a big one, is not going to sign Korea and China.
on to everything which has already been agreed before they were
participants”. Like Vietnam, countries involved in the TPP will have Plan B’s.
However, as New Zealand’s ambassador to the US remarked
The Road Ahead recently, “The tragedy would be that the Plan B’s we have would
not include the United States”.
China is likely to gain from potential US abdication of the TPP.
China is the key driver behind the Regional Comprehensive Since its establishment in 1992, Dezan Shira & Associates
Economic Partnership (RCEP), a trade agreement between the has been guiding foreign clients through Asia’s complex
10 members of ASEAN, as well as Australia, China, India, Japan, regulatory environment and assisting them with all aspects of
New Zealand and South Korea. In the event that the TPP fails, the legal, accounting, tax, internal control, HR, payroll and audit
momentum towards the RCEP is likely to gain strength as China is matters. As a full-service consultancy with operational offices
likely to push for a successful conclusion. across China, Hong Kong, India and emerging ASEAN, we are
your reliable partner for business expansion in this region and
Japan, a key US ally who viewed the TPP as an effective mechanism beyond.
to contain China’s growing economic clout in the region, has
indicated willingness to turn towards the RCEP. Japanese Prime For inquiries, please email us at info@dezshira.com. Further
Minister Shinzo Abe has recently stated that there is now “no information about our firm can be found at: www.dezshira.com
doubt there would be a pivot to the RCEP if the TPP doesn’t go
forward”. He added that Japan “will shift focus to RCEP should
the TPP not go ahead”. Leaders of Asia-Pacific countries, including
the US, Japan, Australia and China, are scheduled to meet during
the upcoming Asia-Pacific Economic Cooperation (APEC) annual
5
