Japan is keen on reconstituting the Trans-Pacific Partnership without the US. Japan and 10 other nations hope to reach a broad agreement. But New Zealand, a leading proponent of the TPP 11 effort, suddenly seems to be wavering. New Zealand wants restrictions on foreign real estate investment.

The 11 nations have already agreed not to alter the original terms of the pact, and if exceptions are made for New Zealand alone, the whole thing can fall apart. Some advocate simply removing New Zealand from the group, a solution that would reduce the amount of milk Japan imports under the deal. But such a step would be difficult given that New Zealand is a founding member of the TPP.

Vietnam also could prove a source of discord. The Southeast Asian country has not relented on its request for changes to critical rules abolishing tariffs on textiles and banning restrictions on the international transfer of e-commerce data. Had TPP proceeded as planned, as a 12-nation trade agreement, including the US, Vietnam was expected to reap the biggest gains from being afforded greater access to the US market. The deal for Vietnam was essentially it would implement difficult reforms on state-owned enterprises and labor and other areas in exchange for greater access to the US market, particularly for textiles and footwear.