Trump looking at US rejoining TPP

Reports from the US say that President Trump has instructed advisers to look at re-entering the Trans-Pacific Partnership trade agreement, a month after it was signed by the remaining eleven countries, including New Zealand.

This looks to be a reaction to pressure from US farmers over Trump’s trade war with China,.

During the 2016 campaign Donald Trump spoke strongly against the TPP. As soon as he took office he withdrew the US from the agreement. Perhaps he thought that would kill the hole deal, but the the TPP progressed without the US, was renamed the CPTPP and was signed by the other eleven countries last month in Chile.

President Obama had promoted US participation in the TPP.

January last year: Trump Abandons Trans-Pacific Partnership, Obama’s Signature Trade Deal

President Trump upended America’s traditional, bipartisan trade policy on Monday as he formally abandoned the ambitious, 12-nation Trans-Pacific Partnership brokered by his predecessor and declared an end to the era of multinational trade agreements that defined global economics for decades.

With the stroke of a pen on his first full weekday in office, Mr. Trump signaled that he plans to follow through on promises to take a more aggressive stance against foreign competitors as part of his “America First” approach. In doing so, he demonstrated that he would not follow old rules, effectively discarding longstanding Republican orthodoxy that expanding global trade was good for the world and America — and that the United States should help write the rules of international commerce.

Although the Trans-Pacific Partnership had not been approved by Congress, Mr. Trump’s decision to withdraw not only doomed former President Barack Obama’s signature trade achievement, but also carried broad geopolitical implications in a fast-growing region. The deal, which was to link a dozen nations from Canada and Chile to Australia and Japan in a complex web of trade rules, was sold as a way to permanently tie the United States to East Asia and create an economic bulwark against a rising China.

Mr. Trump’s decision to scrap the Trans-Pacific Partnership, or T.P.P., reversed a free-trade strategy adopted by presidents of both parties dating back to the Cold War, and aligned him more with the political left. When he told a meeting of union leaders at the White House on Monday that he had just terminated the pact, they broke into applause.

“We’re going to stop the ridiculous trade deals that have taken everybody out of our country and taken companies out of our country, and it’s going to be reversed,” Mr. Trump told them, saying that from now on, the United States would sign trade deals only with individual allies. “I think you’re going to have a lot of companies come back to our country.”

Earlier this year, when it looked like the deal would go ahead without the US, there were signs Trump was rethinking, and now Senators there say he has instructed advisers to look at re-entering the deal.

CNBC: Trump told his advisors to look at re-entering massive Pacific trade deal, senators say

  • Senators say President Donald Trump wants his advisors to reconsider entering the TPP.
  • Lawmakers from agricultural states met with the president about the possible harm to farmers from Chinese retaliation to Trump’s proposed tariffs.
  • Trump left the massive 12-nation deal agreed to by President Barack Obama, and the remaining 11 nations reached a new agreement.

The president said he has instructed chief economic advisor Larry Kudlow and U.S. Trade Representative Robert Lighthizer to consider trying to rejoin the Trans-Pacific Partnership, said Sens. Pat Roberts, R-Kan., and Ben Sasse, R-Neb. The senators were among the lawmakers from agricultural states who met with Trump on Thursday about the White House’s proposed tariffs on China, which farmers worry would lead to retaliation that hurts their businesses.

After the meeting, Sasse told reporters the 12-nation trade deal agreed to by President Barack Obama and abandoned by Trump would be the “single best way” to counter alleged Chinese trade abuses.

“That cheating needs to be countered. But the single best way we can counter that is by leading all the rule of law nations in the Pacific who would rather be aligned with the U.S. than be aligned with China,” he said.

With the original deal, the nations intended in part to counter China’s economic influence in the region.

In January, Trump told CNBC he would join TPP again if he could make a “substantially better deal.” He argued the agreement as previously crafted was “terrible.”

On Thursday, Sasse suggested Trump thinks the U.S. could still join in on the agreement. The president reaffirmed “multiple times” that he believes it may be easier to join the agreement now, the senator said.

Now the deal has been signed without the US it puts them in a much weaker negotiating position.

 

 

7 Comments

  1. David

     /  April 13, 2018

    Kudlow is a good appointment and is a free market guy since forever, at this stage I see it in the context of getting China to behave and wring concessions out of them.

  2. Blazer

     /  April 13, 2018

    U.S Corporations like the I.P and ISS clauses in the TPPA .
    The irony..Trump and his tariffs=barriers to free trade,and appointment of Kudlow…’a free market guy since forever’ according to..David.
    Free market as we know is just semantics,has never existed and…never will.

    • Alan Wilkinson

       /  April 13, 2018

      How is Trademe not a free market? You are full of crap.

  3. PartisanZ

     /  April 13, 2018

    Surprise surprise!!!