Japan PM says free trade talks with United States possible

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Virtually all economic analyses of the proposed TPP, however, provided empirical arguments that the TPP would raise US workers' income, both for highly educated and less educated workers.

Second on the list are regulations that the United States have branded as Korea's "insufficient fulfillment" of the FTA, such as opening its markets for legal services and enhancing the clarity of investigations conducted by the Fair Trade Commission.

The meeting would be their first since Trump's inauguration last week.

Those negotiations could be tricky for US workers because Trump's victory has led to a decline in the Mexican peso.

His selection of Peter Navarro to head the first White House Trade Council has also alarmed some analysts. Trump could bargain for protections for workers that could be undermined by other sections of the agreement that give companies incentives to move overseas, said Lori Wallach, director of Public Citizen's Trade Watch and an opponent of TPP. Australia sent a message to invite other big countries such as China and Indonesia to join the partnership.

Japanese Prime Minister Shinzo Abe has touted it as an engine of economic reform, as well as a counter-weight to a rising China, which is not a TPP member.

TPP was signed last February by the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile, and Peru after more than five years' negotiation. New Zealand stands by Australia.

While Mr Trump campaigned on a pledge to ditch the TPP, blaming trade deals for gutting USA manufacturing jobs, Asian nations including Japan had made a last-ditch effort to convince him of the merits of the pact.

But by the time smooth-talking Conservative Prime Minister Brian Mulroney had pushed the deal through with a parliamentary majority and promises of access to a market of several hundred million people, Canadians had mostly signed on. After he signed the order to withdraw the USA from the TTP on Monday, Trump said the decision was a "great thing for the American worker".

Trump has also threatened to impose trade tariffs as a way to revive American manufacturing and compel USA companies not to take their manufacturing operations overseas.

Not only will you have three countries at the table, but interest groups that grudgingly accept the current deal as a fait accompli will begin to raise their voices. NAFTA, under which tariffs between the United States, Canada and Mexico were eliminated, has been pivotal to the global supply chain in trading parts and products. He has threatened a 35 percent tariff on products made in Mexico and brought into the States.

Trump has placed China hawks in key positions, and his immediate withdrawal from the Trans-Pacific Partnership trade agreement is just one demonstration that he is prepared to follow through on campaign promises. During his presidential campaign, Trump called the TPP a "potential disaster". His logic is that although pulling out from the TPP may seem favorable for Americans who immediately face job shortages, it may turn out to benefit rival China in the long run.

Obama's administration worked with the 11 countries that became signatories for more than two years to formulate the massive free trade deal that was set to reshape commerce throughout the Pacific Rim, triggering movement among multinational companies in the region at the same time.

Zhang Jun, a senior official of the Chinese Foreign Ministry's worldwide economics division, told foreign reporters in Beijing on Monday, "If it's necessary for China to take on the role of world leadership, China will indeed accept that responsibility".

As much as they need Trump, he needs them as well.

But Canada's trade with its southern neighbour has always been encouraged by geography - although an arbitrary line sketched across North America following the US revolutionary war with Britain imposed a border and interrupted natural north-south trade routes.

The next question is whether Trump will brand China a currency manipulator. This assumption was backed by Trump's interview with the Wall Street Journal in which he said he will not brand China a currency manipulator on his first day in office and that he wants dialogue with the country first.