Analysis Of The Article ' Withdrawal From Trans Pacific Partnership, Tpp Shifts U.s.
1375 WordsApr 15, 20176 Pages
In the article, “Withdrawal from Trans-Pacific Partnership, TPP shifts U.S. role in world economy” by Ylan Mui (2017), the author discusses US exit from the TPP, and its impact on world economy. According to Mui, Trump’s cancellation of the agreement for a comprehensive trade deal with Asia began shifting the role of the US in in the world’s economy. The departure leaves a gap for other potential countries to flex their economic muscle. The departure is also viewed as a symbolic move, aimed at showing that the president’s hard-hitting talk on trade during his campaign will continue to his new administration. Mui continues to explain that the action to departure from the TPP came at a time China and other nations across the globe with a…show more content…
Pulling out of the TPP raised significant questions about the reliability of the US, and left most of the US trading partners and allies in the lurch. On the other hand, the deal created an open gap placing China in a position to make as strategic move. Mui continues to explain that this exit put china in the best position to take advantage of the situation that could lead to significant loss for the US. The Chinese government could sign a deal with the Japanese government, which could consequently jeopardize up to $5 billion in American jobs and US exports. Additionally, the move places China in a position of great authority in that it could command the terms of global trade (Mui, 2017).
Mui continues to argue that the US could save the situation by signing bilateral deals with the individual countries involved in the TPP especially Vietnam and Japan. However, there is a need to make a swift move since China is aggressively seeking to lock in trade contracts with most of the same countries that were involved in the signing of the TPP. Trump had also vowed to renegotiate the NAFTA (North American Free Trade Agreement), which significantly vital to the economic relationship between Canada, US, and Mexico. According to Mui, Mexico’s president, Pena Nieto continues to assert that his country would be looking to diversify its political and trading partners during the Trump’s era so that it could stop relying heavily on the US government. The author continues to