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Tuesday, November 29, 2016

Trump is right to insist on bilateral trade talks than multi-lateral TPP. Why?


TPP primary motive was to pursue USA political interest against China and to deter China economic growth.  Without TPP, It will be tough to negotiate with USA during bilateral trade talk because USA is the largest economy in the world.  Japan, the 3rd largest economy, will also face tremendous difficulty against USA.  As TPP was a trade weapon to be used against China, USA gave a lot of concessions to Japan as a tradeoff for being anti-China.  Japan has to open up its farm and agricultural industry for bilateral FTA which is detrimental to Japan PM’s party as his supporters are mostly farmers.  Donald Trump will be focusing on USA economic benefits during bilateral trade talks.  Therefore, it’s tough to negotiate with USA based on economic interests.

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