Trump flips on trade pact, weighs rejoining Pacific-Rim deal
WASHINGTON » In a striking reversal, President Donald Trump has asked trade officials to explore the possibility of the United States rejoining the Trans-Pacific Partnership agreement, a free trade deal he pulled out of during his first days in office as part of his “America first” agenda.
Trump’s request comes as he faces pressure from farmstate Republicans anxious that his protectionist trade policies could spiral into a trade war with China that would hit rural America. Trump spent the 2016 presidential campaign ripping into the multi-national pact, saying he could get a better deal for U.S. businesses by negotiating one-on-one with countries in the Pacific Rim. Now, faced with political consequences of the action, Trump appears to be reconsidering.
“Last year, the president kept his promise to end the TPP deal negotiated by the Obama Administration because it was unfair to American workers and farmers,” the White House said in a statement. The president assigned his top trade advisers, U.S. 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.”
Trump first disclosed his request Thursday to a group of lawmakers at a White House meeting on trade. Lawmakers have been pressing Trump to shift course after escalating trade threats, including China’s plan to slap tariffs on soybeans and other U.S. crops.
The apparent decision comes after the 11 other TPP countries went ahead last month and signed the pact in Santiago, Chile — without the United States. The agreement is meant to establish freer trade in the Asia-Pacific region and put pressure on China to open its markets to compete with and perhaps eventually join the bloc.
It was not immediately clear how committed Trump was to embarking on a new path of potentially thorny negotiations. Trump frequently equivocates on policy when faced with opposition, only to reverse course later.
“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,’” said Sen. Ben Sasse, R-Neb., who attended the meeting.
The president has mused publicly about rejoining the deal before, suggesting he would re-enter if he could negotiate more favorable terms. He has not said precisely what provisions he would want changed.
It’s unclear how willing the other 11 countries would be to reopen the agreement and make concessions to lure the United States back, though its economic power would likely be an appeal.
“If the Trump administration doesn’t pose too many demands, it is likely that the other TPP members will see the value of the bringing the U.S. back into the fold,” said Eswar Prasad, Cornell University professor of trade policy. “Undoubtedly, a TPP that includes the U.S. would be stronger and more formidable than one that does not.”