By Rosalind Mathieson and Haslinda Amin
Asian governments are watching with some anxiety the fate of the North American Free Trade Agreement as the Trump administration kicks off a review of the pact.
"All of us are keen to know whether America is committed to have an open, liberal trading environment," Malaysian Trade Minister Mustapa Mohamed said at the Asia-Pacific Economic Co-operation ministerial meeting in Hanoi, Vietnam.
Mr Mustapa said ministers were "anxious to hear" from new US Trade Representative, Robert Lighthizer. "In this first meeting, the first thing is to get some clarity on protectionism, this America First and how it's going to affect us in this part of the world," he said.
The US government served notice to Congress last week of the administration's intention to renegotiate Nafta. During the US presidential election campaign, Donald Trump called the deal with Mexico and Canada a "disaster" that had cost millions of US jobs and hollowed out the manufacturing sector. A few weeks ago, he was weighing up whether to pull out of the deal entirely.
Donald Trump's administration's intends to renegotiate the North American Free Trade Agreement.Credit: Evan Vucci
Mr Trump has also said he plans to renegotiate some bilateral trade deals with Asian nations, including South Korea. And in one of his first acts as President he pulled the US out of the 12-nation Pacific trade pact, the Trans-Pacific Partnership.
Hallmark of US engagement
The deal, which would have covered 40 per cent of the global economy, was seen as a hallmark of US engagement with Asia under the prior administration and a buffer against China's rising economic and military clout.
There will be a sideline meeting in Hanoi of the remaining 11 nations in the TPP, with countries such as Japan and Australia pushing to proceed without the US.
Progress on the TPP without the US would require significant revision of terms that at least six states, which together account for 85 per cent of the combined gross domestic product of all original signatories, ratify it. The US made up about 60 per cent.
Indonesia's Trade Minister Enggartiasto Lukita said the general mood for global trade was good and there was no sign of protectionist attitudes from the meeting so far.
He added the Regional Comprehensive Economic Partnership would be discussed and ministers still "hope to get it by the end of this year".
Bloomberg