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On Monday President Donald Trump followed through on one of his many campaign promises. He signed the papers that removed the U.S. from TPP. The Trans-Pacific Partnership, or TTP, was a major talking point for President Trump over the last many months. TTP was a major piece of foreign policy for President Obama. Its effects, good or bad, will never be seen however because it was never ratified by a divided congress.
TPP was a free trade agreement between the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Together, these 12 nations have 793 million consumers, produce 40% of world GDP and 26% of its trade.
Trump has been against TPP and NAFTA, the North American Free Trade Agreement, since the beginning. He strongly believes that free trade between the U.S. and these other 11 nations will ultimately harm American workers and undermine American businesses.
At first glance, it would seem that free trade among nations would be good for everybody involved. For some people and businesses that would be true. Free trade encourages a higher amount of import and export between countries. When there is a higher demand for a product or natural resource jobs are created. However, when you have a country with high regulation, high labor cost, and high taxation like the U.S. and a country with low regulations and low labor costs, the natural progression will be to move mid and lower tier jobs overseas. This increases the profit margins of the corporation but it hurts the American workforce.
There is still much uncertainty about what effect President Trump’s policies and decisions will have on the country. But one thing is for certain, he really does want to make America great again. He wants to keep jobs in America. He wants to bring corporations and their money back to U.S. soil. Only history will tell us if his passion and direction lead us to a better place.
After spending years attempting to get the Trans-Pacific Partnership passed through Congress, President Obama has decided to no longer attempt to get it passed through Congress. It will now be in the hands of President Donald Trump and the Republican controlled Congress.
President Obama and his cabinet members have been fighting for months to pass the Trans-Pacific Partnership deal after the election and during the lame-duck session of Congress. However, Trump’s victory and the Republican’s control of government has derailed Obama’s plans. Congress has made it clear they have no intention of taking up TPP before Trump’s election.
Paul Ryan said he would not put it up for a lame-duck vote. Trump made the issues of TPP a key part of his campaign. He labeled the Trans-Pacific Partnership a disaster and called it “a rape of our country.” He has been vocal about allowing imported goods from China and Mexico into our country. His opposition to the Trans-Pacific Partnership has been supported by the blue-collar workers in states like Ohio, Michigan, Wisconsin and Pennsylvania, which gave him the victory against Hillary Clinton.
Trump’s “First 100 Day’s” plan calls for scrapping the Trans-Pacific Partnership and renegotiate the North American Free Trade Agreement and create a tougher trade stance with China. The TPP agreement was signed in 2015 with the hopes of removing trade barriers along with boosting relations with allies in Asia in hopes of keeping China in check as its influence continues to rise.
Before leaving office, President Obama will contact the TPP member countries at the Asia Pacific Economic Cooperation summit, that the United States government will continue to be engaged in Asia and supports trade deals with them.
The Trans-Pacific Partnership was a key piece of President Obama’s attempt at rebuilding relations in Asia, which would strengthen economic, security and diplomatic relations. If approved the TPP would create strong standards for copyright protections and intellectual property rights.
The short and tumultuous life of the Trans-Pacific Partnership (TPP) agreement has come to an end. The trade deal was mired in opposition and controversy amidst a public backlash. Ironically, Democrats and Republicans in Congress both supported the agreement. Voters, however, were extremely skeptical and wary of the deal. Hence, Bernie Sanders and Donald Trump were both very outspoken about it on the campaign trail. With Trump winning the United States’ presidential election, President Obama has dropped the TPP deal from his list of agenda items. TPP could not garner support in Congress at this juncture.
Does this mean the Trans-Pacific Partnership will never return? Time will reveal the answer to that question but, right now, public sentiment is very much against free trade agreements.
11 countries were to join the United States with the TPP deal. President Obama is now tasked with delivering the bad news to the other countries in a major meeting in Peru.
Once again, new trade deals are sure to be developed. Nations do have to trade with one another for the benefit of all countries’ economies. The specific one that takes the form of the TPP, however, has been scrapped. One major complaint about the TPP agreement is it was too long and very few people in the voting public knew much about its contents. In the current landscape of a heated presidential election, the public wouldn’t likely go for such a bill. Hence, it could not move through Congress.
Donald Trump campaigned heavily among blue collar workers and, during his campaigns, he lambasted trade deals. Trump’s winning of the White House sealed the fate of the Trans-Pacific Partnership agreement. Trump has noted he will renegotiate trade deals. So a new trade deal very well emerge, but with different terms, conditions, and components.
TPP is simply the wrong legislation at the wrong time. The shadow of the “Brexit” vote is cast over any multi-national deal. Populism seems to be outpacing globalism at this juncture.