Malcolm Turnbull to discuss trade with Donald Trump after US President reopens door to TPP

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Malcolm Turnbull to discuss trade with Donald Trump after US President reopens door to TPP

By Fergus Hunter
Updated

The United States is unlikely to rejoin the Trans-Pacific Partnership in the near future but it would be "great" if they did, Prime Minister Malcolm Turnbull said after President Donald Trump expressed a willingness to reconsider the trade pact if he could secure a "substantially better deal".

Mr Turnbull said he would be discussing trade when he meets with Mr Trump in Washington DC next month and emphasised that the agreement struck between 11 countries had been designed to admit new members and "even re-admit a member like the United States that chose to pull out".

"But I don't expect the United States to join the TPP anytime soon. We're certainly not counting on it. It would be great if they did. It is a real engine for jobs, for investment. There are thousands of jobs that will be created by the TPP," Mr Turnbull said on Friday.

"Of course, it would be a bigger deal if the United states was in it. It will become a bigger deal when other countries join. Indonesia has expressed strong interest, so has Thailand, South Korea. Even the UK has expressed interest in talking about it."

Malcolm Turnbull at an Australia Day ceremony on Friday.

Malcolm Turnbull at an Australia Day ceremony on Friday.Credit: Jamila Toderas

In an interview with CNBC from the World Economic Forum in Davos, Switzerland, Mr Trump said he would re-enter the pact if the terms were more favourable for the US.

"The deal was terrible, the way it was structured was terrible. If we did a substantially better deal, I would be open to TPP," he said.

In January 2017, as one of his first acts as President, Mr Trump dramatically withdrew the US from the massive Pacific Rim agreement. The world's most powerful economy had accounted for more than 60 per cent of the total GDP represented inside the deal.

In March, the 11 remaining nations are set to sign a revised version, officially called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

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Donald Trump arriving in Switzerland this week.

Donald Trump arriving in Switzerland this week.Credit: Evan Vucci

Australian Trade Minister Steven Ciobo welcomed Mr Trump's latest comments and said he would discuss them with US trade representative Robert Lighthizer in an upcoming meeting.

The nations currently involved are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, representing a combined GDP of $13.7 trillion.

Mr Ciobo said this week the pact would eliminate more than 98 per cent of tariffs between the countries and would deliver 18 new free trade agreements.

"For Australia, that means new trade agreements with Canada and Mexico and greater market access to Japan, Chile, Singapore, Malaysia, Vietnam and Brunei," he said.

Australian farmers will be able to sell more beef, cheese, wheat and rice to Japan and more sugar to Canada and Mexico.

Labor has said it wants to see more detail and economic modelling before deciding to support or oppose the new TPP.

"This new arrangement, while it's much smaller than the old one, certainly bears consideration," Opposition Leader Bill Shorten said on Friday.

"What I want to make sure is that Australians aren't getting dudded, that there are jobs for Australians. That we are making sure that Australian interests are put first. If it stacks up, Labor will give it the tick. If it doesn't stack up, then we are not going to give it the tick."

The Greens have expressed concerns about the Investor State Dispute Settlement provisions and have also demanded more information.

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"The original deal gave multinationals the power to override the will of the Australian people by allowing corporations to sue governments, even when a government is acting in the interest of the community," the party's trade spokeswoman Senator Sarah Hanson-Young said.

"It has no protection for local content and Australian creative industries. If this zombie TPP is anything like what was originally proposed, it should have been left dead, buried and cremated."

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