• February 8, 2017 at 9:04 am

     

     

    One of Donald Trump’s slogans for his presidential election campaign was , “ I will work for the benefit of American worker and American families , promote American industry and raise American wages”.

    Within a week of assuming office he started following his promises. On 23 rd jan 2017 , an executive order of withdrawal of the United States of America (USA) from Trans Pacific Partnership Agreement (TPPA) was signed. Many of us are not aware what actually TPPA is and how it affect the lives of Americans and trade in rest of the world !

    It is a multifaceted agreement between 12 participating countries: USA , Canada , Mexico , Peru , Chile , Japan , Australia , Vietnam , Malaysia , Singapore , Brunei and New Zealand. These countries collectively constitute 40 % of world’s gross domestic product (GDP). The agreement was designed to enhance economic growth (with respect to productivity and competitiveness) and raise living standards of citizens of participating countries. The main aim of these countries was open trade and integration cross

    Many people assumed that it was only a trade agreement. But in Reality, it was much more than that. It was a 30 – chapter document which include free trade agreement with slash tariffs , anti – corruption measures , intellectual property obligations , human rights and child labour conditions , dispute settlement and environmental commitment. In final chapter of the agreement , it was mentioned that whenever TPPA will come into effect , there will always be a scope of amendment and participating parties have all the rights to withdrew from the agreement ! which gibve this agreement an edge from other agreement enforced by World Trade Organisation. USA and Japan are largest economy and trade partners among all participating countries. Hence their consent is necessary for execution of this agreement !

    In contrast to the positive impacts on trade claimed by TPPA , a study of Tuft University predicts that implication of TPPA may lead to slight decline in annual GDP growth of USA. Another consequence of TPPA could be loss of approximately 8 lac jobs in participant countries !!

    Initially this agreement was backed by Obama’s Administration. However , during presidential election , Donald Trump found ways to exploit the above information. He suggested that this agreement will provide benefit to big corporation at public expenses. The information of all American personal data could be sent across borders with limited protection. There will be lack of transparency , multi – stakeholder participation and was shrouded in secrecy. Hence , he made arrangements to withdraw USA from TPPA. He also stated that USA will directly deal with individual countries for future trade on bilateral basis.

    Although with this decision , Trump has gained credibility among his supporter that he is working on campaign promises. In future , this could be proven as a double edge sword to Trump administration. A part of American industry has been distressed with Trump’s decision of TPPA. It is their perspective that TPPA could be an option for American industry to explore Asia – Pacific region for trade. This would result in an economic and political growth of their country.

    On the other side , with the withdrawal of USA from TPPA has disappointed other participating countries. Countries like India and china who were not a part of TPPA has started looking to explore benefits of demises of TPPA ! China actively started coming with an alternative agreement called , “ Regional Comprehensive Economic Partnership (RCEP). It might be possible that this will not be so friendly for USA. Similarly , India is looking for open competitive trade in international market where they have nothing to lose !

    QUESTION: Has Trump era has created a competition for Americans or Business for Americans ???

    Wait till answer appear ! 

     

    • This topic was modified 4 months, 3 weeks ago by Profile photo of Jyoti Sharma Jyoti Sharma.
    • This topic was modified 4 months, 3 weeks ago by Profile photo of Jyoti Sharma Jyoti Sharma.
    • This topic was modified 4 months, 3 weeks ago by Profile photo of Jyoti Sharma Jyoti Sharma.