Trump Signs Executive Order to Withdraw US From TPP

Sen. Sherrod Brown, D-Ohio, lauded Trump’s move in a statement (here). Brown described the withdrawal as necessary and a first step in overhauling trade policy to put U.S. workers first, saying he stands ready to champion Ohio employees by working with the Trump administration to renegotiate NAFTA and create jobs. Trump is set to meet with Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau to jump-start NAFTA renegotiations on Jan. 31.

House Ways and Means Committee Ranking Member Richard Neal, D-Mass., and committee Trade Subcommittee Ranking Member Bill Pascrell, D-N.J., in statements (here) both emphasized that TPP withdrawal should be the first part of a holistic re-examination of the U.S. trade approach. “Going forward, the U.S. needs a new direction for trade -- one that creates jobs in America, reduces our trade deficit, raises wages and protects the environment, consumer safety, and public health,” Pascrell said. Vocal TPP critic Rep. Rosa DeLauro, D-Conn., in a statement (here) signaled an intent to demand a “comprehensive, new approach to trade policy” under the Trump administration, including renegotiating NAFTA to create solid middle-class jobs that can’t be outsourced, and an overall trade policy that expands access to affordable medicine, safeguards food and protects the environment.

Ways and Means Committee Chairman Kevin Brady, R-Texas, in an emailed statement said that while TPP holds “considerable benefits” for the U.S. economy, its several shortcomings resulted in its failure to move in Congress. But Brady added that the Trump administration should build upon the merits of TPP, identify areas for improvement, and “quickly act on a strategy that creates more economic opportunities for America in that region,” adding that U.S. companies and workers will “lose out” if the U.S. abandons the Asia-Pacific region. In an email, Ways and Means Trade Subcommittee Chairman Dave Reichert, R-Wash., essentially echoed Brady's statement, saying that while the agreement contained wins for "businesses, farmers, and workers," its standards weren't up to the level that Americans "expect and deserve," adding that the U.S. must still compete in the Asia-Pacific region. Senate Finance Committee Chairman Orrin Hatch, R-Utah, in an emailed statement said he shares Trump's commitment to negotiate the "strongest" trade agreements for Americans, and pledged to "carefully review" the executive order to evaluate its impact, adding that he looks forward to working with Congressional colleagues and the Trump administration to put forth strong trade policies to boost competitiveness and access to new markets.

The Footwear Distributors and Retailers of America expressed disappointment, but said in a statement (here) the group is not surprised by Trump’s action, saying TPP withdrawal will translate to U.S. consumers paying $500 million more per year on footwear. TPP supporters Business Roundtable and the U.S. Chamber of Commerce didn't immediately comment. Teamsters General President James Hoffa in a statement (here) commended Trump on making “good on his campaign promise” and starting the course of fixing 30 years of “bad trade policies” that have discarded millions of good-paying jobs. “We take this development as a positive sign that President Trump will continue to fulfill his campaign promises in regard to trade policy reform and instruct the USTR to negotiate future agreements that protect American workers and industry," Hoffa said. AFL-CIO also supported the move (here).