By Michael O’BrienBy Michael O”BrienBloombergTechnology reporterBloombergTechnologyNewsThe deal to close the Trans-Pacific Partnership (TPP) has put US President Donald Trump in the driver’s seat to win the next US presidential election.
The deal will end a decades-long trade war between the United States and 11 other countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
The trade deal would open up trade between the US and countries like China, which is already the world’s second-largest economy.
The US already has a large trade deficit with China, with trade of more than $600 billion (NZ$490 billion) in the first nine months of 2017.
It is likely to take years before US exports will rise substantially to the level of exports to China, but US exports to the country increased by more than 10 percent in the same period.
The TPP is a multilateral free trade agreement between the four Pacific Rim nations.
The countries are all members of the World Trade Organization.
The pact was designed to open up markets to foreign investment, including from countries like Vietnam, which have historically had relatively low wages.
Vietnam’s economy has been on the decline, but its economy grew by more in the third quarter of this year than in the entire previous quarter.
In January, the country’s government announced a cut to its corporate tax rate, which it says will help the country avoid a deficit.
It’s unclear how much impact that cut will have on Vietnam’s GDP.
However, analysts say it will have an impact, because Vietnam will have to reduce subsidies for its exports to countries like Australia, which would be a huge boost to its export revenues.
Australia is currently the largest importer of Vietnam’s manufactured goods, accounting for about a third of the countrys exports to Vietnam.
In an interview with the Wall Street Journal, Vietnam’s trade minister said the country was ready to sign a deal with Australia that would help it to “be competitive in the Asia-Pacific region” and to help the US “gain more market share”.
“We need to be able to help [the US] grow economically, but we also need to have a fair trade,” he said.
“We are ready to meet our fair share of the burden and the benefit of the TPP.”
“We have been working with Australia, but at the same time, we are also ready to talk to our own neighbours to get more trade and economic links.”
Vietnamese President Tran Dai Quang said that he was “open to” the possibility of joining a trade deal with the US.
However it is not certain that Vietnam will join the TPP, and there are concerns that it may not be able or willing to do so.VN:F [1.9.22_1171]