Australia and New Zealand to pursue 'TPP 12 minus one'

Australia and New Zealand say they are hopeful of
 pressing ahead with the Trans-Pacific Partnership 
trade deal, despite America's formal withdrawal.

The US-led 12-nation agreement was set to cover 40% of the
world's economic output.

Pulling out of the TPP was one of Mr Trump's first 
executive orders and fulfils a long-held campaign 
promise.

Australia has already devised a name for a possible new
agreement: TPP 12 Minus One.

The country's trade minister Steve Ciobo said Australia 
would not abandon the TPP just because it would require
 "a little bit of elbow grease" to keep it alive.

Meanwhile China, which was not part of the deal, hinted it
 may look to take advantage of TTP's collapse saying it 
was in favour of "open and transparent regional economic arrangements".

The trade agreement was negotiated by former US
 President Barack Obama and was aimed at 
deepening economic ties between its member
 countries, which were Japan, Malaysia, Vietnam, 
Singapore, Brunei, Australia, New Zealand, Canada,
Mexico, Chile and Peru.

So what now for these countries - and indeed for China?

Australia: Holding out hope for a so-called 'TPP minus
 one' Australia, among other nations, is looking for 
ways to salvage the TPP without the US.

Mr Ciobo was in Switzerland last week to discuss new
 deals at the World Economic Forum in Davos.

"I've had conversations with Canada, with Mexico, with 
Japan, with New Zealand, with Singapore, Malaysia,
" he told the Australian Broadcasting Corporation (ABC) 
from New York on Monday.

"I know that there's been conversations that have been
 had with Chile and with Peru. So there's quite a number 
of countries that have an interest in looking to see if we can make a TPP 12 Manus one work," he said.

Mr Ciobo also said the original architecture of the TPP
 was designed to enable other countries to join.

"Certainly I know that Indonesia has expressed a possible interest and there would be scope for China if we were
 able to reformulate it to be a TPP 12 minus one for 
countries like Indonesia or China or indeed other
 countries  to consider joining and to join in order 
to get the benefits that flow as a consequence," he said.

New Zealand Prime Minister Bill English has said he is
 hopeful of keeping a free trade deal alive with remaining members of the TPP agreement, while the country's trade minister Todd McCain told local media he expected TPP ministers would meet in the coming months to navigate
 a way forward.

Like his Australian counterpart, Mr McClay said he had 
met with a number of TPP member countries in Davos.

"New Zealand's economy depends upon fair access to overseas markets. We will continue to advocate for the benefits of trade liberalisation on the world stage," he said.

The country is also looking to hammer out bilateral deals
 with other countries and has recently been to the Middle 
East, promoting key New Zealand products including dairy.

Last week, Mr McClay confirmed New Zealand and Sri 
Lanka would move ahead with discussions on new trade
 and investment opportunities, including a free trade agreement between the two countries.

And the minister has said trade relations with the UK 
are in good shape, with an agreement in place to try and ensure there is no disruption to bilateral trade between 
New Zealand and Britain in the wake of Brexit.

Any hope of resurrecting the TPP will surely depend on 
Japan, the world's third largest economy.

Prime Minister Shinzo Abe has reinforced his trust in President Trump's leadership and said he hopes to
 continue talks with the US around free trade.

"I believe President Trump understands the importance 
of free and fair trade, so I'd like to pursue his understanding 
on the strategic and economic importance of the TPP trade pact," said Mr Abe during a parliament session on Monday.

Japan's finance minister Taro Aso reiterated this stance 
on Tuesday and told reporters that plans were being put in place for Mr Abe to visit the US and meet Mr Trump.

Trade Minister Hiroshige Seko said he would now be
 closely watching for any changes to the North American
 Free Trade Agreement (Nafta) - which includes Canada, Mexico and the US - and how that might impact Japanese companies. 

China: Left out in the cold, is Beijing now rejoicing?

China, which was left out of the TPP deal, has its eye on
 its own regional trade pacts.

It has suggested a Free Trade Area of the Asia Pacific
 and is supportive of the Regional Comprehensive 
Economic Partners his (RCEP), which could see a 
 free trade deal between countries including Australia,
 China, India, Japan, South Korea and New Zealand.

In Davos, President Xi Jinping defended the notion of
 free trade and said protectionism was akin to "locking
 oneself in a dark room".

The Chinese leader's comments were widely viewed 
as a reference to Mr Trump's "America first" policies 
and a clear signal that Beijing saw the move as an 
opportunity to play an even larger role in world trade
 - filling the vacuum left by the US.

At a press conference on Tuesday, a Beijing spokesman avoid answering questions about whether China would
 look to join the TPP.

China had been advocating open transparent trade routes
 in the Pacific region "along with win win solutions," he said.

"We believe in regional economic integration. We are for
 open and transparent regional economic arrangements.

 The economies of the Asia Pacific region are diverse.

 It's important to behave in a open way. We're ready to 
work with all sides to provide impeach for the Asia Pacific 
and the global economy."