Renegotiations of TPP?

By | 2018-03-29T17:22:14+00:00 March 29th, 2018|U.S. Customs|

When President Obama was in office in 2016, his decision for the United States to be a part of the Trans Pacific Partnership (TPP) was based on strengthening economic ties with Asian Nations. Flash forward to President Trump’s first week in office, and the TPP is officially terminated.

Trump supported his decision by insisting that the TPP would have harmed the country’s workers. If the partnership had passed, it is argued that the US would have seen job losses in their manufacturing industry. In fact, even Bernie Sanders expressed gratitude towards Trump’s decision.

With the US pulling out, eleven countries were left committed to going forward, but unable to. The TPP’s enactment date was set for February 2018; Trump opted out on January 23, 2018. In order for the agreement to have gone forward, a portion of the countries making up 85% of the network’s economic output would have to have signed. Of course, the US made up a significant portion of that 85%.

Singapore, Brunei, New Zealand, Chile, Australia, Peru, Vietnam, Malaysia, Mexico, Japan, and Canada decided to move forward, even without the US. They have since renamed the agreement, “Comprehensive and Progressive Agreement for Trans-Pacific Partnership” (CPTPP).

Although President Trump maintained his position that the TPP did not reflect his America First Policies, only a couple days after opting out, he expressed a willingness to renegotiate. The President made it clear that the US had been made a “terrible deal”. If the US were offered a better deal, Trump would reconsider.

At this point, however, the CPTPP is moving forward without the involvement of the US.