Why TPP is Still Relevant Without the U.S.
Wendy Cutler on Bloomberg
On February 22, 2018, ASPI Vice President Wendy Cutler appeared on "Bloomberg Daybreak: Australia" to discuss the recent news that the Trans-Pacific Partnership (TPP) is expected to be signed in Santiago, Chile on March 8. The United States withdrew from the TPP in January 2017.
After a year of uncertainty following the U.S. exit from the TPP, the remaining 11 members earlier this year reached a final deal. The TPP will bringing myriad trade benefits to its members and will establish high standard trade rules in the region. Cutler emphasizes that the agreement is "absolutely relevant" without the United States, particularly because it will set regional standards on key issues such as state-owned enterprises and digital trade. For instance, Cutler notes that TPP member Singapore will prioritize digital trade as the host of the Association of Southeast Asian Nations (ASEAN).
Cutler states that President Trump took a "positive step forward" when he announced at the World Economic Forum Annual Meeting in Davos that he would be interested in rejoining a "substantially better" deal. However, she thinks that observers should wait until the North American Free Trade Agreement (NAFTA) renegotiations are complete to "get a better sense of what the U.S. might ask of the other TPP countries" in a potential bid to rejoin the agreement.
The "biggest risk to global trade," according to Cutler, is potential U.S. trade enforcement measures, such as tariffs on steel and aluminum, encouraging other countries to retaliate with tariffs of their own. Such a development would could result in a trade war. (3 min., 54 sec.)