Trump being destructive — Part 2
8. The Trump admin’s deliberate destruction of the TPP, made China’s Belt & Road the only game in town until Japan stepped up through Abe’s leadership (at an international level). Thanks to Japan, the trade pack survived and entered into force on 30 Dec 2018 between 11 countries, namely, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. For details see:
What Is the Trans-Pacific Partnership (TPP)?
9. In its original form, the TPP would have put around 40% of the world economy on the side of the U.S. — compared with China's share of 18% or 20% of global GDP, said Graham Allison, Harvard University's Douglas Dillon professor of government.
10. The 2017 US withdrawal decision from TPP, by Trump, made it impossible to be pro-American within the 11 TPP member states and ASEAN (some of which have ratified the TPP) during his 4 years of mis-rule.
(a) "Trump has been a source of frustration to the Vietnamese in that his policies have been so bipolar," said Zachary Abuza, a professor at the National War College in Washington D.C. who specializes in Southeast Asia. "He's so transactional, and they understand transactional, but he pulled out of the Trans-Pacific Partnership [trade deal], and no country did more to get into the TPP than Vietnam, so they were angry."
(b) Under Trump, ASEAN trade ministers have no hope for liberal trade agreements with the US. If anything, the momentum seems to be in the opposite direction: Washington has suspended trade preferences for Thailand and Indonesia under the Generalized System of Preferences (GSP); Bangkok and Jakarta are now focused on attempting to negotiate their partial or full restoration.
(c) I see Trump trying to force ASEAN to choose a side (without any benefits), when Obama, through the TPP, was trying to integrate 11 local economies with that of America and ween away ASEAN’s dependence on China for growth. Keeping in mind that in 2010, the ASEAN–China Free Trade Area became the largest free trade area in terms of population and third largest in terms of nominal GDP.
(d) Singapore repeatedly stresses that, for the region, economics is security. The Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement in the Asia-Pacific region between the ten member states of ASEAN, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, and five of their FTA partners—Australia, China, Japan, New Zealand, and South Korea. The three biggest economies in RCEP are China, Japan and Korea — with the US is excluded due to a destructive Trump.
(e) The U.S. was never invited to join RCEP as it was created in part as an answer to TPP. Given that the US withdrew from TPP, it has no part in either of the region's two major free trade agreements — RCEP and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (that excludes the US due to Trump). China has in the end outmaneuvered the Trump administration on trade. In the end of 4 years under Trump, the Americans are reduced to an uni-dimensional power (with deep regional security ties) and are just another arms dealer (like France or Russia), with an UN Security Council veto and little more.