Congress will abandon Trans-Pacific Partnership deal, White House concedes

 
 
Issue 79 | Nov. 17, 2016
Congress will abandon Trans-Pacific Partnership deal, White House concedes
 
White House officials have conceded that the Trans-Pacific Partnership trade deal will not pass the U.S. Congress during the lame duck session before President Obama leaves office. On Monday, President Obama is scheduled to travel to Peru to attend an economic summit where he will meet with Australian prime minister, Malcolm Turnbull, and Chinese president, Xi Jinping. Moving forward, advisors to President Obama argue that the value of trade within the Asia-Pacific region will be of great significance for the next president.  Read more.
 
Mexico ready to discuss NAFTA with Trump, eyes non-U.S. TPP
 
Mexico is preparing talks to convince President-elect Donald Trump of the strategic importance of the North American Free Trade Agreement (NAFTA). On the campaign trail, Trump has openly attacked the trade deal, claiming that the deal is responsible for the loss of U.S. manufacturing jobs. Mexico's economy minister, Ildefonso Guajardo, said that he will not talk about renegotiations and will only speak to the importance of the deal for the region. Business leaders south of the border suggest that Mexico must shift its dependence on the U.S. and focus efforts on trade with Asia. If the U.S. Congress does not ratify the Trans-Pacific Partnership (TTP), Mexico will need to seek options for moving forward without the world's largest economy. Read more.
 
EU puts TTIP in the freezer
 
European Union Trade Commissioner Cecilia Malmstrom expressed pessimism and uncertainty regarding the fate of the Transatlantic Trade and Investment Partnership (TTIP) after the recent U.S. elections. The trade deal has been under negotiations for the past three years and has gone through 15 rounds of discussion. The pessimism for the success of the trade deal stems from the unknown priorities of the new U.S. administration and rising anti-trade sentiment around the world, likely putting the deal on hold. Read more.
 
Obama's last foreign trip aims to promote remaining trade initiative
 
After the recent U.S. election and unlikely passage of the Trans-Pacific Partnership, President Obama's last foreign trip aims to assure the world that America will continue to lead the way on using diplomacy, especially for protection of the environment. In Peru, Obama will attend the Asia-Pacific Economic Cooperation summit, a meeting of 21 Pacific Rim governments. At the summit, he will be pushing for the passage of an Environmental Goods Agreement. The agreement, which would lower tariffs on environmental goods, is on the agenda for several meetings before the end of the year. The administration is pushing for this last surviving initiative on the trade agenda due to no clear opposition to it by the incoming Trump administration, additionally throughout his travels Obama will meet with a series of world leaders to discuss how Trump's victory may affect their relations with the U.S. Read more.
 
U.S. to consider GSP trade benefits for Argentina 
 
After suspending Argentina's trade benefits with the U.S. under the Generalized System of Preferences (GSP) program in 2012, the USTR announced last week that they will begin reviewing Argentina's eligibility for the program. The program, which helps developing countries export various products into the U.S. duty free, totaled nearly 17.7 billion USD last year. Argentina was removed from the program in 2012 due to their failure to properly enforce arbitral awards according the U.S. Trade between the U.S. and Argentina totaled nearly 24 billion USD last year. Read more
 
In phone call, China's Xi Jinping tells Trump cooperation is the only choice
 
In a phone call with President-elect Donald Trump, Chinese President Xi Jinping clearly communicated that cooperation between China and the U.S. is the only correct choice for their bilateral relations. News reports in China said if Trump imposed heavy tariffs on China it would cause trade between the two countries to come to a standstill. After Trump's win dashed hopes for a U.S.-led Trans-Pacific Partnership, China has signaled it will promote plans for a Beijing-backed Asia-Pacific free trade area at a summit in Peru later this month. Read more.
 
 
Compiled by Global Initiative interns Krishna Babla and Mellina Silver.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.
Los Angeles Area Chamber of Commerce, 350, Los Angeles, CA 90017
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