Trump signs executive order to formally withdraw US from TPP

WASHINGTON / TOKYO — United States President Donald Trump signed an executive order formally withdrawing the US from the Trans-Pacific Partnership (TPP) yesterday, pulling away from Asia and scrapping his predecessor’s most significant trade deal on his first full weekday in office.

Mr Trump called the TPP order a “great thing for the American worker”.

His move in an Oval Office ceremony followed through on a promise from his campaign last year when he sharply criticised the 12-nation trade pact.

Although the deal had not been approved by Congress, the decision to withdraw the American signature at the start of Mr Trump’s administration is a signal that he plans to make good on promises to take a more aggressive stance against foreign competitors.

Mr Trump’s move amounts to a drastic reversal of decades of economic policy, in which Presidents from both the Democrat and Republican parties have lowered trade barriers and expanded ties around the world.

Although candidates have often criticised trade deals on the campaign trail, those who made it to the White House, including former President Barack Obama, ended up extending their reach.

Mr Trump took a different course in his inaugural address on Friday, when he promised an “America First” approach to the world. “We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs,” he said. “Protection will lead to great prosperity and strength.”

He said that his policy would be to “buy American and hire American”.

The Obama administration arduously negotiated the Pacific trade pact over eight years.

Under legislation passed by Congress, the accord could not be amended once completed, nor could it be joined without congressional approval. Mr Obama never submitted the partnership for approval, understanding that a defeat in Congress would be worse than leaving the deal in hibernation.

In discarding the TPP, Mr Trump tacked away from his Republican allies in Congress who have long supported such trade agreements.

Speaker Paul D Ryan worked closely with Mr Obama to pass legislation granting the President so-called fast-track authority to negotiate the trade agreement over the objections of many Democrats. But amid opposition, Congress never approved the deal itself.

The agreement brought together the US and 11 other nations along the Pacific Rim, including Canada, Mexico, Japan, Vietnam, Malaysia and Australia, creating a free-trade zone for about 40 per cent of the world’s economy. It was intended to lower tariffs while setting rules for resolving trade disputes, setting patents and protecting intellectual property.

Earlier in the day, Japanese Prime Minister Shinzo Abe said he believed Mr Trump understood the value of free trade and that he would keep pitching the TPP, which Tokyo has ratified.

“I believe President Trump understands the importance of free and fair trade, so I’d like to pursue his understanding on the strategic and economic importance of the TPP trade pact,” Mr Abe had told a session of Parliament’s Lower House.

Mr Abe also said he wanted to strengthen the US-Japan security alliance, based on mutual trust with Mr Trump.

“When we met last time, I believed him to be trustworthy, this belief has not changed today,” Mr Abe added, referring to his November meeting with the then-President-elect.

Mr Abe said Tokyo also wanted to explain how its companies have contributed to the American economy, a stance the Japanese government has adopted to try to fend off threats of a “border tax” on imports into the US.

Japanese Chief Cabinet Secretary Yoshihide Suga had said separately that Tokyo would closely monitor any impact of the new US administration’s policies on its companies and that he wanted to deepen economic ties between the two countries.

He had added that Tokyo would “take every opportunity” to appeal to Mr Trump about the merits of remaining a party to the TPP. AGENCIES