What do Ford Motor Company, Donald Trump, and Bernie Sanders all have in common? They all think the Trans-Pacific Partnership (AKA TPP) is a total disaster. But they couldn’t be more wrong and here’s why.
For one, it’s in our best interest to establish and maintain trade partnerships in Asia. After all, Asia is one of the fastest growing economic regions in the world. The TPP is not only a great way for the U.S. to tap into this gold mine, but is also a great way to create stronger allies.
One of our biggest allies, Japan, is already part of the TPP. Exiting the TPP could sever some serious ties there and elsewhere. In total, there are twelve nations participating in the partnership, including: the U.S., Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
You’ll notice that one big name is missing from that list: China. China was purposefully left out of the TPP and that’s because the deal was established as a way to make trade more affordable for smaller countries. But there’s another reason China was left out of the agreement.
The TPP was actually a covert way for the U.S. to set the rules for world trade, thus maintaining control of the global economy. If we exit the TPP, that leaves a huge opportunity for China, the world’s second largest economy, to step in and take control.
While president-elect Donald Trump has repeatedly blamed China for everything from stealing American jobs to flooding the U.S. market with cheap steel, what he doesn’t realize is that China benefits if the U.S. exits the TPP. His isolationist strategy isn’t going to work; we need other countries if we are to maintain being the world’s largest economy.
One would think that as a businessman he would understand this concept, but it’s becoming more and more clear that his lack of political experience is failing him.