Listen Live
    Demonstrators protest against the legislation to give US President Barack Obama fast-track authority to advance trade deals, including the Trans-Pacific Partnership (TPP)

    Withdrawal From TPP Puts Washington's 'Reliability Into Question'

    © AFP 2019 / SAUL LOEB
    Politics
    Get short URL
    4915

    Donald Trump has fulfilled one of his campaign pledges in the first days of his presidency, signing an executive order which has seen Washington withdraw from the negotiations on the Trans-Pacific Partnership (TPP). Analysts told Sputnik that this move is likely to have an adverse effect on America's image and strategic interests in Asia.

    Trump's approach "raises doubts as to whether decisions US leadership makes are well thought-out and reliable," Vietnamese political analyst Nguyen Dat Phat said. "How reliable is a partner like the United States? Can the TPP survive without the US? Should other countries be asked to join the TPP?"

    The Trans-Pacific Partnership is a controversial deal aimed at deepening economic ties among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the US. The agreement was also seen as a means for Washington to secure a firmer footing in the Asia-Pacific in a bid to counter China's rise.

    President Trump has repeatedly expressed his disliking of multilateral free trade agreements, saying that they are damaging for the US economy. The TPP, he said, is a "disaster" pushed through by special interests. He also described the deal as "a continuing rape of our country."

    On January 23, President Trump signed an executive order confirming that the US will not seek further negotiations on the TPP. He also said that his administration intends to pursue "fair and economically beneficial" bilateral trade deals instead.

    Fyodor Lukyanov, Academic director of the Valdai Discussion Club, suggested that Trump's decision points to a "lack of clear strategy" at the White House. "On the one hand he wants to pressure China, on the other – he backs out of the TPP which was designed primarily to counter China. This makes it difficult to follow his logic," the analyst said.

    Washington's withdrawal from the TPP "leaves many uncertainties related to the future of the deal," Nguyen Dat Phat observed.
    Professor Keichi Umada from Kyorin University maintained that Trump's current stance on the TPP does not necessarily mean that he does not want the US to be part of the deal.

    "There are signs indicating that Trump is applying basic methods of dealing in real estate to diplomacy. He is not talking about buying (ratifying) good assets (TPP), but points to its drawbacks, creating an impression that he does not intend to make the transaction (withdrawal from the TPP), prompting the seller to lower the price (second round of talks). If Japan succeeds in encouraging the US to take part in talks, this alone will qualify as a huge success," the analyst explained.  

    Professor Kong Gaofeng of Johns Hopkins University pointed out that Trump's decision will have an adverse impact on global trade flows.

    "The US is China's key trade partner," he said. "China imports resources, turns them into industrial products and consumption goods and sells them to the US. If the US chooses protectionism, the US consumer will alter the structure of global trade. If China creates an alternative free trade project, then the question is how to find new customers."

    Never miss a story again — sign up to our Telegram channel and we'll keep you up to speed!

    Related:

    Trump on Trade: Tear Up TPP, Renegotiate NAFTA
    America in Full Retreat? How Trump's Exit From TPP May Bolster China's Advance
    Why Trump Snubbing TPP Will Benefit States Supposed to Profit From Deal the Most
    Impact of TPP's Demise on China, Japan and Regional Security
    Tags:
    international trade, trade deals, free trade, Trans-Pacific Partnership (TPP), Donald Trump, Asia-Pacific, Japan, China, United States
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik