World - - Nov 21,2016
China is eager to step into America’s shoes, if Donald Trump crashes the Trans Pacific Partnership
Several times during his presidential election campaigns, Donald Trump expressed his disapproval of various international trade deals and cited the popular anger on the after-effects of globalization. The president elect (now) had even called the Trans Pacific Partnership (TPP), “a disaster done and produced by the special interests of people who want to rape our country.”
The Trans Pacific Partnership is now in grave danger, since the president elect has already expressed such strong emotions against it. TPP was a major step President Barack Obama took to push and boost US influence in Asia. Experts today, believe that China is waiting eagerly for TPP’s demise, it is already looking up to push its own trade deals with other Pacific leaders during the summit in Peru this weekend.
The prospect of U.S. closing off its economy means that China has a free reign to become the focal point of these trade and integration efforts. “The U.S. seem largely ignorant of a constructive economic strategy towards this dynamic region”, Mireya Solis, a senior Brookings Institute fellow says.
TPP would have been the biggest regional trade deal historically, linking 11 countries with the U.S. economy andinculcating nearly 40% of the global GDP along with one third of world trade. Though, the Beijing-backed plan, the Regional Comprehensive Economic Partnership (RCEP) is smaller, it covers 16 nations, accounts for 30% of global GDP and more than 25% of the world trade.
Therefore, if the RCEP succeeds, China would be in the strongest position to lead a bigger, more ambitious Asia-Pacific free trade area in future. Despite the warnings that TPP would break the economy and shift jobs, experts advocate the policy saying that its death would be a bad news for America’s economic interests in the Pacific.