Introduction

From the very beginning, the P4 Agreement was conceived as a catalyst for a broader free trade agreement (hereafter “FTA”) that would ultimately include most major economies in the Asia-Pacific. That is why the P4 Agreement includes an explicit clause that allows “any APEC economy or other state” to seek accession.

With Australia, Malaysia, Peru, the United States, Viet Nam and a host of other countries lining up to join the TPP, the P4 is making good progress towards expanding into a truly trans-Pacific mega-deal. The transition from the P4 to the TPP can be achieved in either of two possible ways: the first is the simpler route of transplanting the existing framework of the P4 into the TPP; the second is making a substantial transformation and going deeper than what the P4 has achieved. What are the pros and cons of each approach? Which route shall be taken? What is the likely outcome based on the current negotiating dynamic? In this chapter, I will try to provide some answers to these questions.