The 12-nation Trans-Pacific Partnership (TPP) trade deal was released almost exactly one year ago, and it was well on its way to becoming ratified. However, with a new president in the U.S., it looks as if the deal may never come to fruition.
On Jan. 20, 2017, Japan ratified the TPP, despite suspicions that President Trump would drop out of the agreement. Japanese Prime Minister Shinzo Abe stressed the importance of continuing to lobby the U.S. over the TPP and underlined the value of free trade. Trade minister Hiroshige Seko noted Japan will keep pushing the U.S. toward joining the TPP. “We will continue to appeal the strategic and economic significance (of the agreement) to the new Trump administration and tenaciously keep urging the country to complete its domestic process,” reported The Japan Times (Jan. 20).
However, on Jan. 23, 2017, Trump formally withdrew the U.S. from the trade deal. Trump noted he will meet with leaders in Mexico and Canada to renegotiate the North American Free Trade Agreement (NAFTA) as well, reported Reuters (Jan. 24). Trump stated that his administration will instead focus on one-on-one trade deals with countries that allow for termination within 30 days.
Meanwhile, the American Farm Bureau Federation (AFBF) advocated for the administration to develop new markets for U.S. agricultural goods and to protect and advance U.S. interests in the Asia-Pacific region. AFBF noted that U.S. agricultural exports to Canada and Mexico quadrupled from 1993 to over $38 billion in 2016 due to NAFTA and renegotiations must recognize those gains.
The withdrawal of the U.S. from the TPP makes ratification impossible by the original standards since at least 6 states which together have a GDP of more than 85% of the GDP of all signatories were required to ratify the agreement before February 4, 2018. The U.S. was required to take part in the deal to meet that condition.
However, Australia and New Zealand will attempt to salvage the TPP by encouraging China and other Asian countries to join. Japanese officials claimed the country is not interested in the trade agreement without U.S. involvement, but will continue pushing U.S. officials to reconsider, reported Reuters (Jan. 24).
New Zealand noted that it is exploring an alternative to the TPP, according to Prime Minister Bill English. New Zealand Trade Minister Todd McClay plans to visit Washington soon and begin talks with his counterparts in other TPP countries over the next couple of months about an alternative to the current agreement, reported China Daily (Jan. 23).
China has already proposed a counter pact, the Free Trade Area of the Asia Pacific and championed the Southeast Asian-backed Regional Comprehensive Economic Partnership.
In The Food Institute's recent webinar "Achieving a self-sustaining business model: Top 3 trends companies need to think about post-COVID-19," Greg Wank, CPA, CGMA, partner and leader of Anchin's food and beverage group, as well as David Eben founder and CEO of Carrington Farms, discussed how to have a more successful business while burning less capital and attaining self-sustainability. The following summarizes the salient points highlighted during the...read more
Jennette has been with The Food Institute since 2013. As Marketing Director, she is responsible for promoting all Food Institute books, seminars and webinars, as well as writing and editing the Food Institute’s annual publications. Additionally, she writes for and edits the daily news update, Today in Food, and contributes to the biweekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and graduated from Rowan University in 2012 with a degree in Communication Studies.
10 Mountainview Road
Upper Saddle River, NJ 07458
Food Institute reps are available to answer your questions
BECOME A MEMBER
For close to 90 years, The Food Institute has been the best "single source" for food industry executives, delivering actionable information daily via email updates, weekly through The Food Institute Report and via a comprehensive web research library. Our information gathering method is not just a "keyword search."