In World Economy News 23/11/2016
US President-elect Donald Trump has announced he plans to quit the Trans-Pacific Partnership (TPP) trade deal on his first day in the White House.
The TPP was signed by 12 countries which together cover 40% of the world’s economy, but has not yet been ratified.
Asia-Pacific leaders meeting at an economic summit in Peru over the weekend pledged to pursue free trade deals despite Mr Trump’s opposition.
But when the US withdraws, what will the fate of the TPP be?
Here is some reaction.
Malcolm Turnbull, Australian prime minister
Time will tell whether and to what extent the new administration and the new congress engages with the TPP or an evolved version of that agreement. There is very strong support among the other 11 parties to the TPP to ratify it and to seek to bring it into force. So Mr Trump and his new congress will have to make their own decisions in America’s interest. It is very clear that from Australia’s point of view, getting greater access for Australian exports, whether it is goods or services to those big markets is manifestly in our interest.
John Key, New Zealand prime minister
The United States is not an island. It can’t just sit there and say it’s not going to trade with the rest of the World, and at some point it will have to give some consideration to that.
Najib Razak, Malaysian prime minister
It is President-elect Donald Trump’s right as the democratically-elected next leader of the United States to make the policy decisions he thinks right. I am a strong supporter of developing trade and open regionalism in Asia Pacific. It is key to benefiting our peoples. I look forward to working with President-elect Trump on our shared goals of strengthening security and ensuring growth that is inclusive, sustainable and fair to all.
Deborah Elms, executive director, Asian Trade Center
This is very depressing news. It means the end of US leadership on trade and the passing of the baton to Asia. At a time of slowing economic growth, the world can ill-afford watching the largest economies turn inward.
Simon Rabinovitch, Asia economics editor at the Economist
This is not surprising given all that Trump said during the campaign, but it is still disappointing. US withdrawal from the TPP kills a deal that was a decade in the works. The irony is that, though Trump has called it a horrible deal, it was actually very good for the US. It would have given the US a very strong say over the rules of trade between Asia and America, putting more of a focus on labour rights and intellectual-property rights. The collapse of the TPP will now create a void in Asia. There is lots of talk about China now moving in to fill it, becoming the region’s leader in shaping trade agreements. But that will be hard for it to do because many other governments are wary of its export machine.
Jim Rogers, Investor
For better or worse, this gives Asia and the Pacific to China and its friends. There are several billion people with strong economies, little debt, and huge assets in the area. It will be a major turning point in history whichever way the world now turns out.
Source: BBC
