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Trump Has Scuttled The Trans-Pacific Partnership (TPP). Will The U.S. Lose Because Of This Policy?

ArmchairPoliticianTradeAsia, November 11, 2017, by Brad Peery,
Blog site: WWW.ArmchairPolitician.US
Email: ArmchairPolitician.US@gmail.com

President Trump’s trip to Asia in early November, 2017, was supposed to be about the possible de-nuclearization of the Korean Peninsula. However, an important element of the trip was to make it clear that Trump wants to follow-up on the U.S. withdrawal from the TPP by arranging bilateral trade agreements with the countries in Asia. Had the U.S. done this 15 years ago with China, instead of relying on the World Trade Organization to police the compliance of countries with their edicts, including China the trade situation with China might be quite different today.

*An advantage of an agreement such as TPP includes preferential terms for member countries, that can reduce tariffs from what they might otherwise be. This group of countries represents 16% of global GDP. Not being a member of TPP could be negative for U.S. farming interests. For example, in July, 2017, Japan imposed a 50% tariff on U.S. frozen beef. Australia’s tariff cost is 27.5% because of their membership in TPP. Japan has also signed an agreement with the European Union to import their farm products. It is working on a similar agreement with Canada, whose pork producers are taking market share from the U.S.

While the U.S. is emphasizing its policy of negotiating bilateral trade agreements, China is doing just the opposite. It has developed a trade agreement, called the Regional Comprehensive Economic Partnership, with 16 countries making up 39% of global GDP. China is the main trade competitor of the U.S. on the global stage. It has an ambitious project called the Silk Road Trade Network that will connect 60 countries to China economically, and as joint investors. These types of activities can result in relationships that go far beyond trade and can involve joint investment and military relationships.
*Trump’s Pacific Trade Tear, Wall Street Journal Editorial, November 11, 2017

ArmchairPolitician.US Opinion

It may turn out the renegotiating Nafta with Mexico and Canada will work out to the benefit of the U.S. mainly by requiring and verifying certain levels of U.S. content in automobiles imported into the U.S. It is much less certain that this will be the case for the U.S. withdrawal from the TPP. There is no evidence yet that any of the countries will be willing to negotiate bi-lateral agreements with the U.S. There are benefits in developing relationships with countries in Asia, beyond just the trade aspect of those relationships. Having the TPP as one element of a relationship with a country can be very beneficial overall.

If the U.S. wants to be a player in Asia, it will need to be viewed as a reliable long term partner. Being a democracy that can change policy, as administrations change, does not bode well for forging lasting partnerships. That is the main issue for the U.S. in developing lasting foreign policy relationships, including trade relationships. It is no wonder that results occur such as how disadvantaged the U.S. is in its trading relationship with China. They know who they are, and where they are going, and can therefore take a very long term view in executing their plans.

See
ArmchairPolitiicianChina, July 27, 2017, by Brad Peery, WWW. ArmchairPolitician.US, ArmchairPolitician.US@gmail.com
China Is Building A Massive New Silk Road Trade Network: This Will Provide Important Challenges To The U.S.

35 comments to Trump Has Scuttled The Trans-Pacific Partnership (TPP). Will The U.S. Lose Because Of This Policy?

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      I look at this as the first edition of what will be our first of publication. I plan to update the book about every 3-4 months as an update to our blog site http://WWW.ArmchairPolitician.US. I plan to continue posting political blogs on http://WWW.ArmchairPolitician.U.S.

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      Brad Peery & ArmchairPolitician.US

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      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

      Hi,

      Thanks for your comments and interest in the ArmchairPolitician.US blog.

      We at ArmchairPolitician.US have published our first book on Amazon. We have also published it on Kindle. Its title is: Trump’s Political Agenda and Achievements, By ArmchairPolitician.US and Brad Peery.

      I thought you might have an interest in getting an update on our website that is organized by subject, making it easier for you to get an overall picture of each of the subjects, countries, and events that are going on and affect U.S political issues and possible solutions.

      I look at this as the first edition of what will be our first of publication. I plan to update the book about every 3-4 months as an update to our blog site http://WWW.ArmchairPolitician.US. I plan to continue posting political blogs on http://WWW.ArmchairPolitician.U.S.

      If what I am doing is of interest, please buy the book and let me know you have done so. I will then put you on a preferred list that can stay in touch with me personally, and with whom I can communicate directly.

      Thanks for your interest in our blog, and hopefully our book, and staying in touch with us.

      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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    • acp

      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

      Hi,

      Thanks for your comments and interest in the ArmchairPolitician.US blog.

      We at ArmchairPolitician.US have published our first book on Amazon. We have also published it on Kindle. Its title is: Trump’s Political Agenda and Achievements, By ArmchairPolitician.US and Brad Peery.

      I thought you might have an interest in getting an update on our website that is organized by subject, making it easier for you to get an overall picture of each of the subjects, countries, and events that are going on and affect U.S political issues and possible solutions.

      I look at this as the first edition of what will be our first of publication. I plan to update the book about every 3-4 months as an update to our blog site http://WWW.ArmchairPolitician.US. I plan to continue posting political blogs on http://WWW.ArmchairPolitician.U.S.

      If what I am doing is of interest, please buy the book and let me know you have done so. I will then put you on a preferred list that can stay in touch with me personally, and with whom I can communicate directly.

      Thanks for your interest in our blog, and hopefully our book, and staying in touch with us.

      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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