Economy - - Nov 22,2016
Donald Trump on Monday announced that the United States would pull out of the Trans-Pacific Partnership (TPP) trade deal as soon as he takes office.
Trump posted a short video message on YouTube yesterday, in which he outlined the tasks that his government intends to do within the first 100 days after taking office in January next year. Trump highlighted 6 major issues including trade, energy, immigration, national security and ethics and pledged that the government will start executing these plans ‘on day one’ of its term.
Trump also promised to reduce restrictions on coal production and stop visa abuses, saying that they ‘kill jobs’ for the working class Americans. He also cleared the air on media reports that targeted his inability to form a cabinet, by saying, “our transition team is working smoothly, efficiently and effectively”.
The TPP trade deal was signed by 12 countries that together cover almost 40% of the world’s economy, including the US, Japan, Malaysia, Australia, New Zealand, Canada and Mexico. Signed in 2012, TPP’s aim was to deepen economic ties and boost growth by reducing tariffs.
Opponents of this deal have often said that, it was negotiated in secret and it favored big corporations. Trump had termed TPP as “the greatest danger yet” to US economy.
US signing out of TPP is said to be a potential threat to many parts of emerging Asia. Other countries may go ahead on their own, but small countries may suffer without an access to the US market. Vietnam and Malaysia were set to gain the most from this deal as they already have a foothold in the US market but were banking upon tariff cuts. Japanese Prime Minister Shinzo Abe has warned that the deal would be ‘meaningless’ without the US.
China could benefit from the deal by stepping up with the regional trade deal, known as RCEP. Asian Countries excluded from TPP, like Philippines, Thailand and South Korea might benefit from the RCEP by getting a preferential access to China’s markets.