25 January 2017

News Story: Trump trade moves chilling, could hurt US business - trade experts

By Heather SCOTT

President Donald Trump's first moves on trade have cast a pall over US trade relations and could hurt US businesses, trade experts say.

Trump has begun his term by pulling out of one major agreement, vowing to renegotiate or exit another, and threatening to impose border taxes on imports -- a clear shift away from decades of policy putting the United States at the forefront of the global push for free trade.

A strident critic of existing US free trade agreements throughout his campaign, Trump's first order of business Monday was to sign an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership.

The move was the fulfillment of a campaign promise -- one that was easy to do because the 2015 agreement had never been implemented, but which nonetheless sent a clear signal the United States is backing away from hard-fought trade pacts.

"It's a sign of a brake on global integration," said International Monetary Fund official Alejandro Werner, who heads the Western Hemisphere Department.

Jake Colvin, vice president of the National Foreign Trade Council, a pro-trade business group, said US leadership on trade issues remains key.

"It is critical that the United States not cede leadership on the global economy to countries like China," he told AFP.

"It's important to have a muscular trade policy, but we need to make sure we're playing offense as well as defense and continue to open up foreign markets for American business and workers."

He said the NFTC will engage with the new administration to point out the good things the TPP would have accomplished.

Read the full story at TerraDaily