Japan will attempt to persuade Donald Trump to reconsider his decision to withdraw the United States from the Trans-Pacific Partnership (TPP), after rejecting Australia's bid to proceed with the deal without the US.
US President Donald Trump boards the elevator at Trump Tower. Photo: AFP
Australian Prime Minister Malcolm Turnbull had been talking to his New Zealand and Japanese counterparts about pressing ahead with it all the same.
But Tokyo last night rejected the bid to proceed with the 12-nation trade deal.
International law expert Donald Rothwell, of the Australian National University, said the deal would need significant renegotiation without the United States.
Mr Rothwell told Morning Report there would be a lot of work if other countries, such as China, were recruited.
"China is a very major economy and it will bring its own particular interests to the table, and inevitably demands to the table, as to what it wants to get out of the agreement. Any renegotiation to try and accomodate China's interests could see some critical aspects of the agreement fall apart."
The Canadian government says the Trans-Pacific Partnership cannot proceed without the United States, even though Australia and New Zealand have pledged to salvage it.
The foreign minister, Chrystia Freeland, says the agreement was constructed in such a way that it can only enter into force with the US as a ratifying country.
Therefore, she says, the TPP as a deal cannot happen without the US being a party to it.
Beef farmers had been hoping to expand exports to Japan under lower tariffs included in the TPP, but the Canadian Cattlemen's Association says Canada should now focus on a trade deal with Japan.
Financial Times Tokyo correspondent Leo Lewis said Mr Trump's move was being seen as a big defeat for the Japanese government, although it was being welcomed by the agriculture lobby.
Australia is insisting the deal can be made to work, and has already come up with a name for a possible new agreement: TPP 12-1.
Trade minister Steve Ciobo said Australia would not abandon the TPP for want of "a little bit of elbow grease" to keep it alive.
Prime Minister Bill English has acknowledged New Zealand would not be high on the list of countries the United States would want to sign bilateral trade deals with.
Mr Trump has raised the prospect of negotiating bilateral trade deals with the other 11 nations, but Mr English was not optimistic about New Zealand getting such an agreement.
He said as a smaller country, New Zealand would be down the list.
Mr English said a bilateral trade deal might not be entirely satisfactory, given comments made by the Trump administration.
"On the other hand they've made it clear, consistent really with their political rhetoric, that they'd expect America to come out of any deal ahead of the other partner."
Mr English said the idea of a 30-day "out clause" for the US, mentioned by Mr Trump, would be unattractive to New Zealand.
The Canadian government said the Trans-Pacific Partnership cannot proceed without the United States.
Foreign minister Chrystia Freeland said the agreement was constructed in such a way that it could only enter into force with the US as a ratifying country.
Beef farmers had been hoping to expand exports to Japan under lower tariffs included in the TPP, but the Canadian Cattlemen's Association said Canada should now focus on a trade deal with Japan.