Trans-Pacific Partnership
President Trump is making his presence felt just three days into his presidency, and has already enacted one of his campaign promises. The President has been very busy re-branding the nation's path in the global economy. On Monday, the Asian trade agreement was canceled by Trump, who stated that the previously signed Trans-Pacific Partnership was not in the best interest of the country. The Trans-Pacific Partnership includes Canada, USA, Mexico, Japan, Australia, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and Brunei.
However, while the Republican-led administration referred to it as a disastrous agreement, the former President, Barack Obama stated that the agreement would support economic growth while fostering job creation and innovative enhancements in poor and developing countries.
President Trump also held a meeting with several business leaders in the Roosevelt Room where he discussed the state of the American manufacturing industry. The cancellation of the Asian deal signals to business leaders that Trump’s tough trade talks as a Republican candidate will be carried over to his newly formed administration. Additionally, the North American Free Trade Agreement, (which was another of his promises during the recent election campaign) will also be renegotiated at a later date.
Will the 22-year-old trade agreement get gutted?
Donald Trump had also reiterated his threat against automakers with operations in Mexico and other parts of the world, as well as companies that build factories overseas, then ship the products back to the US. Another contentious topic will be the renegotiation of Mexico and Canada's 22-year-old deal, which his senior advisers have suggested is a top priority for the new Republican administration.
However, Cornell’s University Professor Eswar Prasad (in an interview) warned that the Republican President could experience an adverse effect globally, with the American influence on political and economic affairs.
President Trump has formally placed the world on notice, declaring that all traditional economic and political alliances with the United States are now open to re-assessment and re-negotiation.
