Monday, President Trump abandons Trans-Pacific Partnership, an extensive free trade agreement which involves Japan and 10 other countries to increase the economic clout of China.
The agreement was negotiated by the former US President Barack Obama, which aimed at strengthening the economic ties between countries like Japan, Vietnam, Singapore, Brunei, New Zealand, Australia, Canada, Chile, Peru and more.
Eswar Prasad, a professor of trade policy at Cornell University Said:
“This abrupt action so early in the Trump administration puts the world on notice that all of America’s traditional economic and political alliances are now open to reassessment and renegotiation,”.“This could have an adverse long-run impact on the ability of the U.S. to maintain its influence and leadership in the world economic and political affairs.”
Watch President Trump signed an executive order withdrawing the U.S. from the Trans-Pacific Partnership trade deal:
The White House Press Secretary- Sean Spicer, stated that the Trump’s administration will follow bilateral trade deals that would result benefiting American workers and related industries with its “America First” policy, instead of multilateral deals like TPP, which according to Trump is a job-killing “Disaster”.
Spicer Told a News Briefing:
“The beautiful thing about a bilateral agreement is that if any one of the true parties in the agreement decides at any time they want to get out of the agreement, or they’re not being treated fairly, they can renegotiate much easier,”. “In a multilateral agreement, that’s not the case.”
Trump also singled out China, saying:
“If you want to take a plant or you want to do something, you want to sell something into China and other countries, it’s very, very hard.”
“In some cases, it’s impossible,”. “They won’t even take your product.”
John McCain, a Chairman of the Senate Committee on Armed Services, criticized it as
“A serious mistake that will have lasting consequences for America’s economy and our strategic position in the Asia-Pacific region.”
“This decision will forfeit the opportunity to promote American exports, reduce trade barriers, open new markets, and protect American invention and innovation,”
“It will create an opening for China to rewrite the economic rules of the road at the expense of American workers,” he said. “And it will send a troubling signal of American disengagement in the Asia-Pacific region at a time we can least afford it.”