The Trans-Pacific Partnership (TTP) was less than 2 years old before The United States decided to part ways with the agreement. When signed in 2015, its goal was to establish a free trade zone between North America and 11 countries in the Asia-Pacific. There are good and bad components to the agreement, but the real question is how will this affect the future of many US industries.
Hilary Clinton and Donald Trump both made headlines for their campaign promises to abolish and/or renegotiate the TTP. Research had suggested that U.S exports would increase by $123 billion dollars and would roughly 650,000 jobs would be created. Although, it seems if things went the way of NAFTA, then it would in turn create jobs oversees but lose American jobs due to cheaper labor elsewhere. In addition, MSNBC correspondent Ali Velshi of reported another implication,
“The government is helping creating wealth for these companies, there’s no mandate that they spend it on hiring or wages. Companies love free trade. Companies get to share profits with shareholders, the government gets the taxes, but workers don’t get their fair share.”
The loss of the TTP is also a loss for, first and foremost, the lowered taxes on foreign imports and exports. Second, there were regulations as a part of the act that led to more standards in factories where goods are made. Consequently, activists hoped this would cut down on the child labor crisis that is so prevalent in many South Asian countries. Third, consumers even found security in TTP as it set rules against counterfeiting and protected intellectual property. Lastly, the partnership strengthened North American ties in Asia and helped keep China’s economic stronghold in the region in check. “You pull the U.S. out and the great fear is that China steps into that void and leaves us out,” John Husing, chief economist for the Inland Empire Economic Partnership reported.
The U.S Departure from the Trans-Pacific Partnership has raised questions and concerns. Meanwhile, the White House stated that, “The Trump administration will pursue bilateral trade opportunities with allies around the globe.” The exact measures are yet to be seen, but this will not be the last time the United States will partner with Asian countries in regards to trade.