Page 12 - January-February-2017

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TPP- US withdrawal and impact

on global trade attitudes

On 23rd of January, the newly elected U.S. President finance institution like AIIB (Asian Infrastructure
Donald J. Trump signed an executive order about the Investment Bank).
withdrawal of United States from the Trans-Pacific
Partnership. According to Mr. President, the On the other hand, the ministry of finance of Kenya
agreement is a “disaster” and a “worse trade deal.” has also welcomed the US withdrawal from TPP. The
Noteworthy is that, signed by 12 nations in February reason for appreciation is that the duty-free exports to
2016, the pact cannot take an effect without United the US have had a huge impact on the exports and
States participation. economy of Kenya. “The withdrawal from this trade
agreement by Donald Trump is good news for Kenya,
This withdrawal of United Stated from the particularly the country’s textile industry,” said the
Trans-Pacific Partnership (TPP) is considered as a Trade Principal Secretary of Kenya, Chris Kiptoo. At
momentum for the Regional Comprehensive the same time, the Indonesian textile and garment
Economic Partnership (RCEP). The exit of US is expected producers are also looking forward to a level playing
to accelerate the significant shift in the overall landscape of field in the United States.
trading policies in the Asia Pacific.
Despite the positive feedback from major textile
Just like many others, the decision is expected to exporters, it is said that the withdrawal of US from the
have a positive impact on the economic leadership TPP will abandon the trade deal that was the root of
position of China in the Asia-Pacific. At the time, Obama’s re-engagement with the Asian Nations. The
China is undertaking its individual regional economic supporters of the TPP are claiming that the pact was
initiatives like One Belt One Road strategy that is in favor of Americans as it would end up giving the
playing a major role in creating a development lower price imported consumer goods.