Tuesday, January 24, 2017

TRUMP CREATES OPPORTUNITY FOR OTHER COUNTRIES TO UNITE


He is creating opportunities for other countries who have been in war in several segments to come together and create new growth for a new global economy excluding US.

He is aggressive in his policy reforms and he has already acted on them. Trump revoked the Trans-Pacific Partnership trade deal. The TPP, a giant and semi-secret 12-member free-trade agreement advocated by the Obama administration, aimed to deepen economic ties between the U.S. and 11 other Pacific Rim nations, cut taxes and foster trade to boost economic growth in the process.  Now quickly measure the consequences of withdrawing this trade pact.  Trade agreements with these member states are now cancelled which  are: Japan - the only country to have already ratified the pact - Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. Hence GDP of these economies and the current states of trade and investments comes to an halt and also the relation with these states come to an bitter level. According to Trump cancellation of this agreement will create job opportunities for the US citizens.

This agreement saved US position from China’s penetration within these economies.  The 12 countries involved have a collective population of about 800 million - almost double that of the European Union's single market. The 12-nation would-be bloc is already responsible for 40% of world trade. Many agricultural and industrial products were a part of the trade act. In all, some 18,000 tariffs were included. Industries like Automobile, Pharma, Agri products and Tech firms were covered under the trade act.

 Breaking these trade pacts will create more bonding within different countries to stand and unite against US economy in the near future. Its being found that Trump does not understand geo politics. Soon Trump will be looking towrads NAFTA. Signed into law in 1994 by former President Bill Clinton, NAFTA is a trade agreement between the United States, Canada and Mexico. It essentially eliminates almost all tariffs between the three nations, allowing the flow of goods and supplies across borders. Well now its well clear that Trump has already began breaking trade pacts and this should be taken as an opportunity for countries like India and China to promote and penetrate with new trade agreements with these countries.


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