The World Bank noted that if ratified by signatories, the TPP could increase member countries` GDP by an average of 1.1 percent by 2030. It could also boost member countries` trade by 11 percent by 2030 and boost regional trade growth, which had slowed from about 10 percent in 1990-07 to an average of about 5 percent in 2010-14. [153] The World Bank notes that the agreement will raise real wages for all signatories: «In the United States, for example, changes in real wages are expected to be small, as wages for unskilled and skilled workers will increase by 0.4% and 0.6%, respectively, by 2030. In contrast, the TPP in Vietnam could increase the real wages of unskilled workers by more than 14% by 2030, as the production intensity of unskilled workers (e.B. Textiles) in Vietnam. [153] President Trump signed a presidential memorandum [Note 2] on January 23, 2017 to remove the United States from the TPP. [71] United States. Senator John McCain criticized the withdrawal, saying, «It will send a troubling signal of U.S. withdrawal in the Asia-Pacific region at a time when we can least afford it.» [72] U.S. Senator Bernie Sanders welcomed the decision, saying, «Over the past 30 years, we have had a number of trade agreements …
which have cost us millions of decently paid jobs and created a «race to the bottom» that has lowered the wages of American workers. [73] The agreement reduces more than 18,000 tariffs. [87] Tariffs on all U.S.-made products and almost all U.S. agricultural products would be completely eliminated, with most eliminations occurring immediately. [88] According to the Congressional Research Service, the TPP is «the largest U.S. free trade agreement in terms of trade flows ($905 billion in the United States). Exports of goods and services and $980 billion in imports in 2014).» [21] Including the United States, the signatories account for about 40% of global GDP and one-third of world trade. [89] In a speech on the 2016 presidential campaign, Republican Party candidate Donald Trump promised to withdraw the United States from the Trans-Pacific Partnership if elected. He argued that the deal would «undermine» the U.S. economy and its independence.
[65] [66] On November 21, 2016, in a video message, Trump outlined an economic strategy that «puts America first» and said he would «bring back fair bilateral trade agreements that would bring jobs and industry back to American shores.» As part of that plan, Trump confirmed his intention for the United States to withdraw from the Trans-Pacific Partnership on his first day in office. [67] [68] [69] McConnell reiterated that the TPP would not be considered at the Lame Duck session of Congress before Trump`s inauguration. [70] Guidelines on Electronic Commerce. The TPP was the first regional agreement to include comprehensive rules for digital commerce that would have ensured the free flow of information across borders, required consumer privacy, and prohibited policies that require investors to move their servers and other related facilities to the host country. Marc L. Busch, professor at Georgetown University, and Krzysztof J. However, Pelc, a professor at McGill University, notes that modern trade agreements are long and complex because, in addition to tariffs, they often address non-tariff barriers such as different standards and regulations. Due to the steady decline in tariff barriers since the Second World War, it has become increasingly likely to erect trade barriers in the form of non-tariff barriers. Domestic companies often pressure their own governments to adopt regulations to prevent foreign companies from entering.
The TPP addresses many of these «disguised trade restrictions,» for example by «basing these measures on agreed scientific evidence; make the rule-making process more transparent; and to give foreign exporters the opportunity to make a substantial contribution to the development of these measures. [199] In November 2009, President Obama announced the United States` intention to participate in the Trans-Pacific Partnership (TPP) negotiations to conclude an ambitious next-generation trade agreement for the Asia-Pacific that reflects U.S. economic priorities and values. Through this agreement, the Obama administration seeks to boost U.S. economic growth and support the creation and preservation of quality American jobs by increasing exports to a region that includes some of the world`s strongest economies and accounts for nearly 40 percent of global GDP. The Obama administration is working closely with Congress and various stakeholders to reach a strong agreement that addresses the issues facing American businesses and workers in the 21st century. Some countries, including New Zealand, have suggested that some sort of alternative deal might be possible without the United States. For its proponents, such a deal would have expanded U.S. trade and investment abroad, boosted economic growth, lowered consumer prices and created new jobs, while promoting U.S. strategic interests in the Asia-Pacific region. But critics, including Trump, said the deal was likely to accelerate the decline in U.S. output, cut wages and increase inequality. TPP economies accounted for about 40 percent of global gross domestic product (GDP), and the deal would have been the largest ever reached by the United States, both in terms of number of countries and total trade flows.
U.S. data from the International Trade Commission [PDF] shows that U.S. trade with TPP countries was worth more than $1.5 trillion, or about 40 percent of all U.S. countries.
