Canada picks Singapore for Asia gateway as TPP flounders

Canada's trade finance agency is launching its first global branch in Singapore as the country steps up efforts to boost business ties with Asia following the withdrawal of the United States from the Trans-Pacific Partnership (TPP) trade deal.

Export Development Canada's branch will allow the agency to facilitate structured finance and corporate finance in local currencies, rather than Canadian dollars, while avoiding delays caused by the time difference, its regional vice-president Bill Brown told Reuters.

The TPP, which originally covered some 40 percent of global gross domestic product, was effectively torpedoed in its current form when President Donald Trump withdrew the United States from the agreement in January. The deal included Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam.

"Canada's largest trading partner is the US but the fastest growing economies are in this part of the word," Brown said. "The base case for putting this branch here remains very strong regardless of whether there's a TPP or not."

EDC aims to facilitate transactions between Canadian and Asian businesses worth 3.5-4 billion Canadian dollars ($2.7-$3.00 billion) annually for the next four years.