US’s Withdraw from TPP
The United States officially declared its withdrawal from the Trans-Pacific Partnership (TPP) on January 23. U.S. President Donald Trump is planning to focus on bilateral trade agreements instead based on his America First policy and this means export-led economies such as South Korea and Japan cannot rely any longer on mega FTAs and multilateral trade agreements.
The United States is going to start a NAFTA renegotiation soon, too. President Donald Trump has said that his country will withdraw from the NAFTA unless a fair renegotiation is guaranteed by Canada and Mexico.
Experts point out that his next target is likely to be the KORUS FTA. During his election campaign, he mentioned the NAFTA and the KORUS FTA as two examples of the trade agreements the previous government failed at.
CNN reported that the United States’ withdrawal from the TPP will lead to American companies’ less access to Asia-Pacific markets. Republican Senator John McCain stated that the withdrawal will result in less export from the U.S., higher trade barriers and the lack of innovation while giving a chance for China to strengthen its political and economic influence in the Asia-Pacific region. On the contrary, Democratic Senator Bernie Sanders remarked that he welcomes the decision and now is the time to work on policy that can contribute to American workers.