Trump takes office and kills TPP

© Rafael Ben-ari | Dreamstime.com - Thousands march against TPP trade agreement in Auckland - New Ze

President Trump has torn up the Trans-Pacific Partnership (TPP) as per his campaign pledge. The mammoth trade deal – which would have slashed tariffs among 12 nations – was beset by problems from its start.

Democratic politician Bernie Sanders described it as a “failed free-trade policy… one that had already cost millions of jobs and shuttered thousands of US factories”. However, The Atlantic reports the deal had enjoyed some popularity – notably among the Republican party leadership, although that was not shared by Mr Trump.

“Not only will the TPP undermine our economy but it will undermine our independence,” he said last year, and he described yesterday’s move as a “great thing for the American worker”.

However, The Atlantic notes that tearing up an agreement whose members comprise approximately 40% of the global economy would create an opportunity for China and allow it to exert further influence on the Pacific Rim. One-time Republican nominee John McCain  describes the withdrawal as a “serious mistake”.

The article further suggests that had TPP passed, US middle-class workers may have become more appealing on the back of stringent labour and environmental laws driving overseas costs up.