The resumption of TPP could be a complex task. The remaining eleven countries spent months renegotiating a pact that the United States market lacks, and finally agreed to a comprehensive multinational agreement this year. Eswar Prasad, a trade expert at Cornell University, said it was hard to imagine that the United States would "be welcomed with open arms" by the current members or that they would have much influence over the reorganization of the agreement.
And in the past, the president has made policies, such as working with Democrats on immigration laws and gun rights, on which he later resorted to. Trump's decision to rethink the deal stems from the White House trying to protect the agricultural sector, which could be badly damaged by the president's trading approach.
The risk of an escalating trade war with China has panicked American farmers and ranchers sending many of their products abroad. China has responded to Trump's threat of tariffs on Chinese goods worth up to $ 1
China's aggressive response to Mr. Trump's tariffs is directly directed against goods from the American heartland, a region that has sent him to the White House. A trade war with China could be particularly devastating to the rural economy, especially to pig farmers, soybean and corn farmers. Almost two-thirds of US soybean exports go to China.
The Trump government says it has ordered the Department of Agriculture to develop a program to help farmers be harmed by trade. Trade advisors say the department could use a program known as the Commodity Credit Corporation to buy potentially billions of dollars in harvests from American farmers who have been harmed by tariffs.
But such a program would be time consuming and expensive and would come as a budget, the deficit continues to rise. Many American farmers claim that the easiest way to help them is to avoid a trade war with China. And many economists say the best way to fight an emerging China and push it to open up its market is through multilateral trade agreements such as the Trans-Pacific Partnership, which creates favorable trading conditions for participants.
Among the proponents of the Trans-Pacific Partnership was Trump's candidate for the State Department, Mike Pompeo, who said at his hearing on Thursday that the United States must be deeply committed to "dealing with China."
On Thursday, republican senators, congressmen, and governors from Iowa, Nebraska, North Dakota, Kansas, Texas, and other farmer states met with the president to express their concerns.
Senator Ben Sasse, Republican of Nebraska, said this was the "Good News" case that the president had instructed his business adviser Larry Kudlow and his commercial negotiator Robert Lighthizer to deal with the deal. "The best thing the United States can do to stop the Chinese fraud is to lead the other 11 Pacific nations that believe in free trade and the rule of law," Sasse said in a statement.
Senator Charles E Grassley, Iowa Republican, said Thursday in a tweet that the senators from the farm state attending the meeting had voiced their concern over "nervousness among farmers" over the Chinese retaliation.
Continue reading the main story