Trump’s presidency generates uncertainty
All bets are off in guessing what Donald Trump’s presidency could mean for future trade agreements between the United States and New Zealand.
His US presidential election win has created a lot of uncertainty around whether he would back up his campaign rhetoric with action and what this would mean for New Zealand, Lincoln University professor of international trade, Crawford Falconer said. ‘‘We’re in uncharted territory.’’ ‘‘He’s unpredictable and I would never rule out things coming from left field.’’
It was also possible Trump would adopt a trade strategy of going after countries through trade disputes.
That could included raising tariffs against China and tearing up the North America Free Trade Agreement and the TPPA, which he believed was now highly unlikely to be ratified by the US.
Many of Trump’s supporters backed a nationalistic ‘‘America first’’ trade strategy where US exports were promoted and countries imported US exports.
But Falconer doubted many countries would agree to that.
‘‘What you might find as part of his strategy to make America great again, he will have a storyline in there about a totally new approach to trade. It wouldn’t at all surprise me to see that kind of rhetoric coming out.’’
Trump had created an expectation among American voters of changing things. Falconer would not be surprised if Trump had an activist agenda when it came to trade and pursuing US interests.
In response, New Zealand had to make a more aggressive effort to secure trade agreements in Asian and Europe, he said
Republican Presidential nominee Donald Trump addresses supporters.