Wednesday , 28 June 2017
REUTERS

Game over for the TPP

Donald Trump has signed a decree on withdrawing the US from the Trans-Pacific Partnership.

One of his campaign pledges fulfilled

Getting out of the TPP was on the list of Donald Trump’s pre-election promises. Many criticized him for his populist rhetoric and were convinced that he was only making loud statements.

However, the signing of the decree to withdraw from the TPP was done in the early days of his presidency, and a lot of countries consider this project to be an enormously important one. In the least, this move is positioned as a fundamental change in the world economy aimed at directly improving the economic performance of the United States.

History

The TPP agreement was signed on February 4th, 2016, and was actively lobbied by the Obama Administration. The US, Canada, Australia, Mexico, Japan, Chile, Peru, Singapore, Vietnam, Malaysia, New Zealand, and Brunei confirmed their membership in this agreement. According to the plan, the agreement was to establish a free trade zone and cover up to 40% of global GDP.

Discord among partners

Japan and Peru are expected to be hit the hardest after the US withdraws from the agreement.

Yesterday, Japanese Prime Minister Shinzo Abe, speaking in the lower house of parliament, said he was planing to meet with Donald Trump “as soon as possible” to discuss regional security issues and the Trans-Pacific Partnership. In Peru, the signing of the TPP agreement caused social and political upheaval, as this agreement directly affects the pharmaceutical sector of the country, which has suffered significant losses. Now, the US withdrawal will lead to another polarization of society.

Who was the cleverest of all?

It is significant that one of the US’ most important partners, South Korea, refused to join the agreement, citing the fact that the country has enough bilateral agreements with all prospective members of the TPP. Instead of Obama’s project, Seoul has made gestures in the direction of Eurasian economic projects.

Katehon

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