Business

Donald Trump pulls out of Trans Pacific Partnership or TPP – Why it may still survive?

Donald Trump pulls out of Trans Pacific Partnership or TPP – Why it may still survive?

NVONews Desk

Washington DC: Is Trans-Pacific Partnership trade deal dead? Yes, if you thought that it was only about the United States. And now as the new President, Donald Trump, has pulled the nation out, it is dead. Nonetheless there seem to be enough reasons to believe that despite Trump pulling out of the TPP, the trade deal might still survive.

Nonetheless, while it may survive somehow or the other, it will certainly be a lot smaller and insignificant. Australia and New Zealand say they are hopeful of pressing ahead with the Trans-Pacific Partnership trade deal, despite America’s formal withdrawal.

donald-trump

Before the US pulled out of the trade deal, the 12-nation Trans-Pacific Partnership had twelve nations onboard and covered as much as 40% of the world’s economic output. With the United States out of the picture and China having been refuted entry, it is now a miniaturized version of what it was initially expected to be.

Donald Trump had promised the pull the US out of the deal on the day one after taking oath of office. With the pullout he fulfils a long-held campaign promise.

In the meantime, other nations are not going to scrap it and Australia has already devised a name for a possible new agreement: TPP 12 Minus One. The country’s trade minister Steve Ciobo said Australia would not abandon the TPP just because it would require “a little bit of elbow grease” to keep it alive.

On the other hand, China is saying it was in favour of “open and transparent regional economic arrangements”. The trade agreement was negotiated by former US President Barack Obama and was aimed at deepening economic ties between member its countries, which were Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.

Australia’s trade minister Steve Ciobo, told a radio station “I’ve had conversations with Canada, with Mexico, with Japan, with New Zealand, with Singapore, Malaysia…I know that there’s been conversations that have been had with Chile and with Peru. So there’s quite a number of countries that have an interest in looking to see if we can make a TPP 12 minus one work”.

More in Business