TPP11 Explore Plan B Agreement In Japan
by Mary Swire, Tax-News.com, Hong Kong
13 July 2017
Following agreement reached by the remaining signatories to the Trans-Pacific Partnership (TPP) earlier this year to push ahead following US President Donald Trump's withdrawal of the United States from the pact, Japan has taken the lead with regard to formulating a plan B for the agreement.
The Japanese authorities, represented by Kazuyoshi Umemoto, hosted a meeting of representatives from the TPP-11 countries (Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Malaysia, Peru, Singapore, and Vietnam) on July 12.
Had the existing deal been adopted, it would have eliminated most tariffs on industrial goods immediately, with tariffs on some sensitive items phased out over longer timeframes. TPP members had also agreed to eliminate tariffs on textiles and apparel, which are economic growth drivers in several TPP markets.
However, the text provided that the deal could only enter into force once approval had been sealed from at least six countries representing at least 85 percent of the TP12's combined GDP. Now the US has withdrawn, it is impossible to now satisfy those parameters.
There are now concerns that some signatories will withdraw or seek to alter the terms they agreed to now that the US has decided not to proceed with the agreement, given that the US's commitments would have had significant benefits for those territories.
It is hoped that a plan of action can be agreed ahead of the Asia-Pacific Economic Cooperation Leaders' Meeting, due to take place in Vietnam in November.
To see today's news, click here.
Tax-News Reviews

A review and forecast of Cyprus's international business, legal and investment climate.

A review and forecast of Malta's international business, legal and investment climate.

A review and forecast of Jersey's international business, legal and investment climate.

A review of the latest budget news and government financial statements from around the world.
Stay Updated
Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.
By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.
To manage your mailing list preferences, please click here »
Network Blogs and Features
- Digital Take Center Stage... »
- Budgets Bypass Manifestos, Manifestly »
- Reforms Continue Apace... »
- LLC vs Corporation - All You Need to Know »
- A Mixed Bag of Swiss Rolls and VAT Selection Packs... »
- A Flurry Of Activity »
- Tinkering Behind The Scenes »
- Why choose Hong Kong for starting an Online Business? »
- Hong Kong International Focus »
- Political Declarations & Future Relationships »