Beijing urges Asia-Pacific FTA as counter to US-sponsored TPP

May 5, 2014

BEIJING – China’s Ministry of Commerce has proposed establishing a working group to study the feasibility of an Asia-Pacific Free Trade Agreement (FTAAP), a pact first proposed in 2006. The matter is scheduled to be discussed during the upcoming Asia Pacific Economic C-ooperation (APEC) forum year.

The announcement follows a trip to Asia by US President Barack Obama, where he promoted the creation of the Trans-Pacific Partnership (TPP), a grouping of 12 nations including Japan, Australia, Malaysia and Mexico. However talks on the TPP have stalled on issues related to Japan's tightly guarded car and agricultural sectors.

The FTAAP is considered a counter to the US-led TPP and an effort to curb US influence in the region while enhancing China’s. Last year, China’s Ministry of Commerce announced plans to build a high-level network of FTAs to expand China’s economic power. Beijing has signed FTAs with 12 countries and organisations, including ASEAN, Iceland and Switzerland, and is in negotiation with six economies, including South Korea, the Gulf Cooperation Council and Australia.