President Trump scrapped TPP trade deal

President Trump on the first day of his presidency pulled US out of the Trans Pacific Partnership (TPP) through an executive order. He made the promise to the voters during the election campaign to abandon this trade deal. This pull out means that TPP can go ahead but  without US.

TPP was a flagship trade deal brokered by former president Obama as a counter weight to the EU single market. The countries signed the deal including, Australia, New Zealand, Vietnam, Malaysia, Canada, Mexico, Chile, Peru, Singapore, Japan and Brunei. This deal was signed by these countries in February 2016. All the 12 countries bordering Pacific Ocean and main aim of this deal was to create a single market. TPP countries represent around 40% of the world GDP.

Now the future of TPP hangs in balance as Australia still wants to go ahead with the deal even without US. The impact of US withdrawal will become clear in next couple of weeks.

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