Regional Economic Partnership More Reliable Than TPP: Minister

TEMPO.CO, Jakarta - The Regional Comprehensive Economic Partnership (RCEP) is considered more reliable than the Trans-Pacific Partnership (TPP), especially if the United States eventually withdraws from the cooperation, the government has stated.

If the United States (US), under the leadership of President-elect Donald Trump, withdraws from TPP, the cooperation will be less interesting, Trade Minister Enggartiasto Lukita said Tuesday.

"RCEP is seen as more advanced and provides certainty as compared to the TPPs whose initiator plans to withdraw," Enggartiasto said.

Indonesia just stated its interest in the cooperation which was initiated by President Barack Obama, but has not declared its intention to join, Enggartiasto said.

The Trans-Pacific Partnership is a block that not only regulates trade and services, but also removal of import-export tariffs and equal treatment between State Owned Enterprises (SOEs) and private sectors.

TPP was initiated by the United States and has 12 members from Canada, Australia, Japan, New Zealand, Mexico, Chile, Peru, and four Southeast Asian countries of Malaysia, Singapore, Brunei and Vietnam. However, the agreement has still not been ratified.

Meanwhile, RCEP is an idea to integrate ASEAN cooperation with other trading partner countries. These are China, Japan, South Korea, India, New Zealand, and Australia.

"However, we are also prepared if President-elect Donald Trump sticks on or leaves the TPP," Enggartiasto said.

In addition to making improvements in the country on priority, the government also seeks to increase trade diplomacy with partner countries. Such improvements are in the schemes of bilateral and multilateral cooperation.

Earlier, in his campaign, Donald Trump had stated that he would cancel the US participation in the Trans-Pacific Partnership. The Trans-Pacific Partnership was at odds with his government's agenda that prioritizes US interests, Trump had stated.

However, the Asia-Pacific Economic Cooperation (APEC) leaders are committed to fighting all forms of protectionism that will be applied by the US.

At the APEC Summit in Lima, Peru the leaders agreed to continue the Trans-Pacific Partnership without the US.

ANTARA