One of the first executive orders signed by Donald Trump following his inauguration as the 45th President of the United States was to withdraw the USA from the Trans-Pacific Partnership.
One of the first executive orders signed by Donald Trump following his inauguration as the 45th President of the United States was to withdraw the USA from the Trans-Pacific Partnership.
The Trans-Pacific Partnership is a multilateral deal on trade rules signed on October 5, 2015 by twelve countries of the Asia and Pacific region, including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, USA and Vietnam. TPP is designed to facilitate and boost trade and investment projects across TPP countries. A major goal behind the deal is to maintain and promote economic growth.
Why is it so important to us? In its provisions, TPP resembles the Transatlantic Trade and Investment Partnership, or TTIP for short, itself negotiated since 2013. The latter would result in a free trade area between the US and European Union.
What Trump has done with TPP shows we cannot really tell the future for TTIP.
TTIP would primarily lift customs duties and investment barriers and reduce red tape, and make it easier for small and large businesses to export and import from/to USA and make investments there. It would also allow Americans to invest in Europe more easily, thus supporting trade, economic growth and labor market on both sides. This would obviously help reinvigorate these economies.
Not everything is lost yet. Contrary to EU states, Poland is a party to a valid bilateral agreement with the US. Even if TTIP negotiations were cancelled, current Poland–United States relations would remain virtually unchanged. Mind you, putting an end to TTIP negotiations does not exclude other deals between Europe and the United States. Also, the signing of CETA between Canada and EU provides broad opportunities for European companies to work with American businesses as many American corporations have their branches or distribution companies in Canada.
Signed between the EU and Canada in November 2016, CETA is an important deal that is going to provide greater opportunities for European entrepreneurs to run their businesses in Canada and lift customs duties and generate new jobs in Europe.
Both CETA and TTIP have faced a barrage of criticism, though, as social organizations have claimed the agreements would reduce employment and, most importantly, bring cheaper and modified food from Canada.
Is the TTIP at risk, too, in the light of the arrogant move by Trump?