During the presidential campaign, President-elect Donald Trump made his
However, it is not only the NAFTA that Trump wants to leave. On Monday, the president-elect said on Facebook Inc NASDAQFB that he would withdraw the country from the Trans-Pacific Partnership (TPP) on his first day in the White House.
What Is The TPP?
The TPP is a 12-nation trade deal that was signed earlier this year by the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru, after seven years of negotiations. The idea is to trim tariffs, incentivizing trade between the involved parties.
It has been estimated that this partnership would reach
Last year, the value of trade between the United States and the other TPP-signing countries surpassed $1.5 trillion. As it can be appreciated in the chart below, the figures are far from negligible.
On the other hand, right and left-wing experts have said that the TPP and similar agreements have benefited large corporations, in detriment of working families.
“Instead we will negotiate fair bilateral trade deals that bring jobs and industry back on to American shores,” Trump assured, when justifying his intention to quit the treaty.
Winners And Losers
Companies that would benefit from the TPP (and lose from a withdrawal) include:
- Farmers and food production companies.
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