President Trump made good on a campaign promise Monday when he pulled the US out of the Trans-Pacific Partnership, a sweeping 12-nation deal that was a key part of President Obama's aim to increase ties with Asia while keeping China in check. So now what?
- China wasn't part of the pact, and the US withdrawal gives Beijing an opening to play a bigger trade role in the region and the world, reports Bloomberg. It is pushing an alternative pact.
- A Wall Street Journal story, however, raises doubts about Beijing's ability to fill the shoes of the US, despite President Xi Jinping's seeming embrace of free trade last week in Davos.
- Bernie Sanders loves Trump's move (trade deals "have cost us millions of decent-paying jobs"), while John McCain hates it (in part because of the opportunity he sees for China). Details at Business Insider.
- Trump's move, while expected, could mark the beginning of a fundamental shift in the global economy, reports the Washington Post. It means that all US economic alliances are up for reassessment, says a Cornell prof.
- Trump is betting he can negotiate better terms for the US with partners than previous presidents, explains CNN.
- As for TPP, Australia and New Zealand say they hope to keep it alive despite the US withdrawal. Think "TPP 12 Minus One," reports the BBC.
- USA Today has the nuts and bolts of the trade pact (including the important fact that it hadn't been ratified by the Senate yet).