President Donald Trump issued an executive order on Monday withdrawing America from the Trans Pacific Partnership (TPP).
Withdrawing from the deal was a campaign pledge and a cornerstone of President Obama’s Asia policy. It was signed by twelve nations.
In other orders he cut funding for international groups that provide abortions, and he put in a hiring freeze on some federal workers.
Honouring Campaign Pledge
Donald Trump has always been very critical of the TPP deal stating it was harming U.S manufacturing. When campaigning one of his pledges was to withdraw from the agreement, and he has now set wheels in motion to do so.
The TPP agreement covered 40% of the world’s economy and was negotiated in 2015. This included Malaysia, Australia, New Zealand, Mexico, Canada, and Japan. The aim of the agreement was to reduce trade tariffs between countries with a view to boosting trade and economies.
Potentially it could have created a new single market similar to the EU. Critics claimed it was designed to box in China.
President Trump pledged to cut taxes and regulations on companies but said he would impose border taxes on businesses that move factories outside of America.
He gave business leaders incentives to keep production in the U.S in an attempt to safeguard American jobs. He met with leaders from Under Armour, Whirlpool, Tesla, Lockheed Martin, and Johnson & Johnson.
He offered to slash corporation tax to 15% or 20% from its current 35% and to slash regulations by up to three quarters providing jobs were kept in the U.S.
Reports are surfacing that President Trump is to withdraw from the NAFTA trade deal as well.
Throughout his campaign, he has said that he wanted to reinvigorate America’s so-called rust belt. This afternoon he will meet labour leaders. His plan seems to be to keep jobs in America.