U.S. President Donald Trump would probably fid it tough to get the world's largest economy back into the Pacific trade deal even as he has reportedly expressed his intention to take another look at the deal. Last year, he had withdrawn the U.S. from that deal soon after becoming the president.
A new agreement without the participation of the U.S. has bene forged by the 11 remaining countries in the Trans-Pacific Partnership fater the withdrawal of the U.S.
The White House said last week that Trump wanted to know whether a better trade deal could be negotiated in the TPP agreement and asked his trade and economic advisers to do so.
The TPP was described as a “disaster” by Trump during the election campaign for the Presidential election in 2016. And therefore, his decision to pull out of the deal was an important campaign promise.
But why has he changed his opinion now?
According to experts, one of the biggest factors is the trade rife with China. Conceived by the Obama administration, the original aim of the TPP agreement was a way for the U.S. to halt the rising Chinese economic influence through the Pacific clout. And even though China is not a part of het TPP, there are some experts who believe that China may alter its approach to trade by the events since Trump took office.
"I think this is part of the administration's growing awareness that bilateral pressure on China is unlikely to get the job done on its own," said Edward Alden, a senior fellow at the Council on Foreign Relations who specializes in trade and economics. "The TPP was a source of leverage against China, but President Trump simply didn't listen to those who were making that case before he pulled the plug."
Since the U.S.-China trade disputes threatens to reduce the export market for U.S. farmers., there is ricing concerns that farmers in Canada, Mexico and Australia will get an advantage in export because of the TPP which has been missed out by the U.S. China has already announced imposition of higher tariffs on import of U.S. fruit and pork into the country and has threatened with tariffs for other larger exports, including soybeans.
There has been a cautious response ot Trump’s change of heart about the TP{P deal by come member countries of the deal.
"We would like to welcome the president's remarks if it means that he recognizes the meaning and effect of the TPP," said Yoshihide Suga, the Japanese government's chief cabinet secretary. He warned that "it is extremely difficult to take out one part and renegotiate." New Zealand has also raised a similar point.
"If the United States genuinely wished to reenter, that would trigger another process of engagement and negotiation," New Zealand Prime Minister Jacinda Ardern said. "It's not simply a matter of slotting into an existing deal."
The priority for Australia currently is to implement and make effective the new TPP agreement that was signed by the 11 countries last month, even though the country welcomed the new interest shown by the U.S. in the deal, said Australian Trade Minister Steven Ciobo.
"There isn't an appetite for any substantial renegotiation in any material way of the TPP," he said.
(Source:www.money.cnn.com)
A new agreement without the participation of the U.S. has bene forged by the 11 remaining countries in the Trans-Pacific Partnership fater the withdrawal of the U.S.
The White House said last week that Trump wanted to know whether a better trade deal could be negotiated in the TPP agreement and asked his trade and economic advisers to do so.
The TPP was described as a “disaster” by Trump during the election campaign for the Presidential election in 2016. And therefore, his decision to pull out of the deal was an important campaign promise.
But why has he changed his opinion now?
According to experts, one of the biggest factors is the trade rife with China. Conceived by the Obama administration, the original aim of the TPP agreement was a way for the U.S. to halt the rising Chinese economic influence through the Pacific clout. And even though China is not a part of het TPP, there are some experts who believe that China may alter its approach to trade by the events since Trump took office.
"I think this is part of the administration's growing awareness that bilateral pressure on China is unlikely to get the job done on its own," said Edward Alden, a senior fellow at the Council on Foreign Relations who specializes in trade and economics. "The TPP was a source of leverage against China, but President Trump simply didn't listen to those who were making that case before he pulled the plug."
Since the U.S.-China trade disputes threatens to reduce the export market for U.S. farmers., there is ricing concerns that farmers in Canada, Mexico and Australia will get an advantage in export because of the TPP which has been missed out by the U.S. China has already announced imposition of higher tariffs on import of U.S. fruit and pork into the country and has threatened with tariffs for other larger exports, including soybeans.
There has been a cautious response ot Trump’s change of heart about the TP{P deal by come member countries of the deal.
"We would like to welcome the president's remarks if it means that he recognizes the meaning and effect of the TPP," said Yoshihide Suga, the Japanese government's chief cabinet secretary. He warned that "it is extremely difficult to take out one part and renegotiate." New Zealand has also raised a similar point.
"If the United States genuinely wished to reenter, that would trigger another process of engagement and negotiation," New Zealand Prime Minister Jacinda Ardern said. "It's not simply a matter of slotting into an existing deal."
The priority for Australia currently is to implement and make effective the new TPP agreement that was signed by the 11 countries last month, even though the country welcomed the new interest shown by the U.S. in the deal, said Australian Trade Minister Steven Ciobo.
"There isn't an appetite for any substantial renegotiation in any material way of the TPP," he said.
(Source:www.money.cnn.com)