Donald Trump proposes rejoining Trans-Pacific Partnership

The New Daily
Apr 13, 2018, updated Apr 13, 2018

US President Donald Trump has asked his top economic advisors to explore the possibility of rejoining the Trans-Pacific Partnership (TPP).

A White House spokesman confirmed on Friday (Thursday local time) the president had assigned his top trade advisers, US Trade Representative Robert Lighthizer and his new chief economic adviser, Larry Kudlow, “to take another look at whether or not a better deal could be negotiated” in order to open US farmers to more overseas markets.

Mr Trump previously called the TPP a “disaster” and he pulled out of the agreement last year as part of his “America first” agenda.

Nebraska Senator Ben Sasse had earlier told reporters that the President “multiple times reaffirmed the point that TPP might be easier to join now”.

“I’m sure there are lots of particulars that they’d want to negotiate, but the president multiple times reaffirmed in general to all of us and looked right at Larry Kudlow and said, ‘Larry, go get it done.’”

However, Mr Trump tweeted on Friday he would only join the TPP “if the deal were substantially better than the deal offered to Pres. Obama”. 

“We already have BILATERAL deals with six of the eleven nations in TPP, and are working to make a deal with the biggest of those nations, Japan, who has hit us hard on trade for years!” he wrote.

In March, 11 countries including Australia signed the TPP agreement while Mr Trump rejected the deal, raising questions in the US whether protectionism will impede its economic growth.

US Senate Agriculture, Nutrition and Forestry Committee chairman Pat Roberts further confirmed the president’s change of heart, saying he was “very impressed” that Mr Trump would look at rejoining the TPP.

He told reporters that it “certainly would be good news all throughout farm country”.

The news comes as the risk of an escalating trade war with China has panicked American farmers and ranchers, who send many of their products abroad.

Earlier this month, China responded to Mr Trump’s threat of tariffs on as much as $US150 billion worth of Chinese goods by placing its own tariffs on American pork, and threatening taxes on soybeans, sorghum, corn and beef.

Nearly two-thirds of United States soybean exports go to China.

President Trump, who held the White House meeting aimed at easing the high anxiety of Midwest lawmakers as a result of the China trade dispute, has previously not ruled out rejoining the TPP.

He said he would consider it if it was a “good deal” for his country.

In a February news conference, Prime Minister Malcolm Turnbull and President Trump spoke about the US possibly rejoining the TPP, with Mr Trump saying he would if the negotiators offered the US more favourable terms.

“I would do TPP if we were able to make a substantially better deal. The deal was terrible,” Mr Trump told CNBC in January.

Australia’s Trade Minister Steve Ciobo is due to respond to Mr Trump’s decision on Friday afternoon.

Japanese Finance Minister Taro Aso was cautious about the president’s decision saying Mr  Trump “is a person who could change temperamentally, so he may say something different the next day”, Mr Aso said.

Prime Minister Shinzo Abe and Mr Trump are expected to discuss the TPP at their summit meeting next week.

-with AP