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Page 135 of 496
No. 213
Filed JANUARY 23, 2017
Economy & Trade
First Term

Trump Signs Executive Memorandum Withdrawing U.S. From Trans-Pacific Partnership, Resolves Long-Standing Concern That United States Was Setting Asia-Pacific Trade Rules Instead Of China

The Filing

WASHINGTON. President Donald J. Trump signed an executive memorandum Monday formally withdrawing the United States from the Trans-Pacific Partnership, ending American participation in a twelve-nation trade agreement that the previous administration had spent seven years negotiating to draw the Asia-Pacific region closer to Washington rather than Beijing.

The TPP, which covered roughly 40 percent of global gross domestic product, had been designed in part to set commerce rules in a region where the United States competes with China for economic influence. With Mr. Trump's signature, those rules will now be set by the remaining eleven nations, plus whichever larger Pacific power chooses to step into the vacated chair.

"Great thing for the American worker, what we just did," Mr. Trump told reporters in the Oval Office while flanked by union leaders. He described the deal, which had not yet taken effect, as "a potential disaster for our country," thereby establishing the administration's preferred posture of opposing harms whose ability to materialize had been preemptively foreclosed.

Within hours, officials in Beijing began publicly highlighting the appeal of the Regional Comprehensive Economic Partnership, a parallel trade bloc led by China that excludes the United States by design. Australian, Japanese, and Vietnamese trade ministers, having spent years aligning their domestic industries to the now-abandoned American-led standards, were reported to be quietly evaluating which other large Pacific economy might be interested in setting the next round of rules.

Sources within the administration confirmed that the withdrawal fulfilled a central campaign pledge to extract the United States from multilateral trade agreements, regardless of whether the agreements served American interests, on the operating theory that any negotiation involving more than two parties places the United States at a structural disadvantage. The remaining eleven nations subsequently ratified a lightly amended version of the deal as the CPTPP, granting their exporters preferential access to one another's markets and to the markets of any future signatories, a category the United States has placed itself outside of.

At press time, the Chinese Ministry of Commerce was reported to be drafting a thank-you note, though the State Department clarified that the gesture appeared, on review, to have been entirely sincere.

Sourced to the public record · presented without editorial embellishment
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