Former President Barack Obama was the one who initiated for
the U.S. to join the TPP, but on President Trump’s first day in office he
signed an order stating that the U.S. was to be removed from the partnership.
He declared an end to the era of multinational trade agreements. What they’ve
done with their choice to withdraw from the partnership is to give them an
incentive for diversifying their trading partners. In hopes that the
diversifying will make them find their own way to start conversations and have
negotiations that the U.S. will not participate in. However, removing the U.S.
from the TPP increases doubt among the United States’ allies about how reliable
the U.S. is across an array of overseas and financial matters. This removal
marks the first time the U.S. has backed out from an agreement it supported. President
Trump has changed the U.S. trade policy by insisting he will only negotiate
trade deals with specific allies. It is to be determined how the administration
will put the strategy into place and how to utilize it. The U.S. had tried
bilateral agreements in the past, but they were slow to progress and some of
the negotiations had to be abandoned which resulted in a shift to multinational
agreements.
Source: (Solís, 2017)
https://www.brookings.edu/blog/unpacked/2017/03/24/trump-withdrawing-from-the-trans-pacific-partnership/
Source: (Solís, 2017)
https://www.brookings.edu/blog/unpacked/2017/03/24/trump-withdrawing-from-the-trans-pacific-partnership/
Could a decision like this, especially made on the first day in office, prevent companies from investing into the US? The argumentation somehow makes sense to me, but does anyone agree to me that this decision makes the US somehow seem unpredictable and therefore a complicated/unstable trading partner?
ReplyDeleteThe question with regard to the US trade with these 11 countries tied to the TPP is how many individual members can negotiate (or have negotiated now) similar or equal terms with the US, independently from the integrated regional body? The TPP allowed the US to eliminate some 18000 taxes on US exports!
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