The US announces its withdrawal from the TPP.

Immediately after his presidential inauguration, Donald Trump's administration announced its trade strategy to protect American jobs, beginning with withdrawing from the Trans-Pacific Partnership (TPP).

The White House statement said that, with years of negotiating experience, the President understands the importance of putting the interests of American workers and businesses first in trade matters. Therefore, "tough and fair" international trade agreements can boost the American economy and create millions of jobs.

"This strategy will begin with withdrawing from the TPP and ensuring that all subsequent trade agreements serve the interests of American workers," the announcement stated.

President Trump quickly fulfilled his promise to "say no" to the TPP shortly after taking office. Photo: Reuters

Trump will also renegotiate the North American Free Trade Agreement (NAFTA), signed in 1994 between the United States, Canada, and Mexico. If these countries refuse to renegotiate to give American workers a fair deal, "the President will announce withdrawal from NAFTA."

The White House also affirmed that the U.S. will not tolerate countries that violate trade agreements and harm American workers in the process.

"Americans have long been forced to accept trade agreements that prioritize the interests of insiders and Washington's elite over the working class. As a result, cities have witnessed factory closures and high-paying jobs moving overseas, while the U.S. faces massive budget deficits and a crumbling manufacturing sector," the statement read.

The US signed the TPP agreement last year, but has yet to ratify it. The TPP is a cornerstone of the Obama administration's pivot to the Asia-Pacific policy, amidst China's rapid rise in power. Supporters of the agreement fear that withdrawing from the TPP could shift power in the region to China, harming the US. Trump has consistently criticized China's trade policies and threatened to impose tariffs on goods from the country.

Concluding negotiations in October 2015 after five years of development, the TPP is considered a historic free trade agreement with the participation of 12 countries:The United States, Vietnam, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, and Singapore.

Following this event, countries began the process of legal review and parliamentary approval to implement the agreement in 2018. However, this process faced numerous obstacles, most notably the US presidential election, where neither Trump nor Clinton supported the agreement. The remaining TPP members, particularly Japan, made efforts to salvage the situation. But with the new US administration announcing its withdrawal, the countries will have to choose between negotiating a TPP without the US or letting the agreement collapse.

According to VNE