Indonesia moves away from TPP because of Trump triumph
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The Indonesian government has said it will not be in a hurry to seek membership of the US-led Trans-Pacific Partnership (TPP) trade deal following the election of Republican Donald Trump as the country’s president.
The decision was made considering Trump’s promise on the campaign trail to scrap the TPP, a multinational trade deal between the US and countries in the Asia-Pacific.
“We are still calculating the costs and benefits of the TPP. This kind of agreement requires thorough negotiation and recently the discussion was getting stressful,” Trade Minister Enggartiasto “Enggar” Lukita said on Friday during a media briefing in Jakarta.
He explained that problems persisted because each country had its own “ego” in expressing its needs through the mega trade deal.
President Joko “Jokowi” Widodo expressed his intention to join the 12-member trade bloc last year.
The TPP, which covers 40 percent of global gross domestic product (GDP), was signed by Brunei Darussalam, Canada, Australia, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore the US and Vietnam.
The trade deal has not been ratified by the US Congress.
Questions & Answers
Q.What is the primary reason for Indonesia's change in stance regarding the TPP?
What is the primary reason for Indonesia's change in stance regarding the TPP?
Indonesia is not rushing to join the TPP after Donald Trump's election. This decision comes as Trump promised to scrap the multinational trade deal during his presidential campaign, making its future uncertain.
Q.Which Indonesian official commented on the country's current approach to the TPP?
Which Indonesian official commented on the country's current approach to the TPP?
Trade Minister Enggartiasto “Enggar” Lukita stated that Indonesia is still calculating the costs and benefits of the TPP. He mentioned that discussions were becoming stressful due to countries' individual 'egos'.
Q.How many countries initially signed the TPP agreement?
How many countries initially signed the TPP agreement?
The TPP agreement was signed by twelve countries, including the US, Canada, Japan, Australia, and New Zealand, among others. It aimed to cover 40 percent of global gross domestic product.
Q.Has the TPP agreement been fully implemented yet?
Has the TPP agreement been fully implemented yet?
No, the TPP agreement has not yet been fully implemented. Although signed by the member nations, the deal still requires ratification by the US Congress before it can come into full effect.
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