Trans-Pacific Partnership nations focus on merging trade agreements with China

China loomed large in the considerations over the controversial Trans-Pacific Partnership (TPP) trade deal, trade ministers revealed at the official signing in New Zealand Thursday.

Asked if China would one day come "into the tent" of the 12-nation deal, trade representatives said at a press conference after the signing ceremony that the deal would set a trade standards that could be expanded to other nations including China.

United States Trade Representative Michael Froman said the TPP was not directed against any particular country, but was directed towards setting high standards for the region.

All the countries in the region realized the importance of continuing to have a constructive economic relationship with China, said Froman.

"We're continuing to work with them (China) whether it's through our bilateral dialogues or through the negotiation of a high-standard bilateral investment treaty to ensure that they are also hitting high standards and that we have a strong rules-based trading system here in the region," he said.

Australian Trade and Investment Minister Andrew Robb said the TPP together with the Regional Comprehensive Economic Partnership (RCEP) negotiations, which involved China in another regional trade deal backed by the Association of South East Asian Nations, could together become a very strong basis for a unifying set of trade rules in the Asia-Pacific region.

"When you remove the noodle bowl of bilateral rules, which have worked effectively as the foundations for the TPP and I think will again work as the foundations for RCEP, to make that into one set of seamless trading rules across the region, it reduces the cost, it makes it a lot easier to trade, it increases certainty for exporters and importers and it is really a very strong objective that we're all ultimately heading for," said Robb.

Malaysian Minister of International Trade and Industry Mustapa Mohamed said there were fears in many TPP countries, including his own, that the TPP could jeopardize the trading relationship with China, which was either their biggest trading partner or one of the biggest.

"To that our response has been that China is now our biggest trading partner and we don't see that changing in the next few years," said Mohamed.

"The way we look at it in Malaysia is that the TPP will bring the momentum for bigger trade opening-up in the region and of course, as you know, we are open to other countries coming on board," he said.

"The way forward is to continue having very strong economic links with China and next of course to always welcome the accession of new members."

Chilean Minister of Foreign Affairs Heraldo Munoz said the TPP was perfectly compatible with advancing the Free Trade Area of Asia Pacific, under discussion by the Asia-Pacific Economic Cooperation group of countries, including China.

"China is the main trade partner for Chile and we look forward to deepening that relationship, and we think that we have to make this convergent rather than to see it as divergent," said Munoz. Enditem