Trump administration announces withdrawal from TPP www.nhk.or.jp
The administration of new US President Donald Trump has announced through the White House website that the US is withdrawing from the Trans-Pacific Partnership free trade agreement.
The website says that with tough and fair agreements, international trade can be used to grow the US economy.
It adds that this strategy starts by withdrawing from the TPP.
In February of last year, 12 countries including Japan and the United States signed the pact. Member countries have since been proceeding with domestic procedures needed to put the agreement into effect. Congressional approval in the US is necessary for implementing the TPP.
The announcement of US withdrawal means the pact is unlikely to take effect.
Instead, the Trump administration plans to negotiate bilateral economic deals that are more likely to reflect US national interests.
But the US presence in Asia could decrease as negotiations are underway on the Regional Comprehensive Economic Partnership, or RCEP, which includes China and Japan, but not the US.
Trump has suggested that the US will impose high tariffs on imports from China, with which the US has a huge trade deficit.
The White House website also says Trump is committed to renegotiating the North American Free Trade Agreement.
It says that if Mexico and Canada refuse a renegotiation that gives American workers a fair deal, then the president will give notice of the US intent to withdraw from NAFTA.
Trump has criticized NAFTA, saying it has caused factories in the US to move to Mexico. He has warned that he will impose 35-percent tariffs on products made at such factories in Mexico.
Some analysts say Trump's protectionist trade policy may lead to stagnation in global trade.
Published Date:2017-01-21