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23 January 2017

Trump withdraws US from TPP deal

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President Donald Trump has fulfilled a campaign pledge by signing an executive order to withdraw from the Trans-Pacific Partnership (TPP).

The trade deal, a linchpin of ex-President Barack Obama’s Asia policy, was signed by 12 nations.

“Great thing for the American worker what we just did,” said Mr Trump as he dumped the pact with a stroke of a pen.

He also cut funding for international groups that provide abortions and freezed hiring of some federal workers.

During his presidential campaign, Mr Trump had criticised TPP as a “potential disaster for our country”, arguing it harmed US manufacturing.

The massive trade deal, which covered 40% of the world’s economy, was negotiated in 2015 by nations including the US, Japan, Malaysia, Australia, New Zealand, Canada and Mexico.

TPP’s stated aim was to strengthen economic ties and boost growth, including by reducing tariffs.

It also included measures to enforce labour and environmental standards, copyrights, patents and other legal protections.

Also on Monday morning, Mr Trump pledged to “massively” cut regulations and taxes on companies, but impose “a very major border tax” if they move factories outside the US.

This followed a meeting with executives from companies including defence manufacturer Lockheed Martin, apparel maker Under Armour, appliance manufacturer Whirlpool, electric-carmaker Tesla and pharmaceutical giant Johnson & Johnson.

After meeting business leaders, Mr Trump also warned them he would impose a “very major border tax” on companies that move manufacturing out of the US.

“We’re going to be cutting regulation massively”, but the rules will be “just as protective of the people”, he told reporters after the morning meeting in the White House’s Roosevelt Room.

He pledged to lower corporate taxes to 15% or 20% from the current 35% and lift regulations by up to 75%.

Source:

BBC

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