In his first week in office, President Trump made good on his promise to nix the Trans-Pacific Partnership (TPP), a cornerstone program proposed by Obama’s administration.
The TPP was a 12-nation pack to deepen international relations through cutting tariffs and fostering trade. With a population of 800 million between the 12 countries, one can see how this may be an economic boost. The deal was similar to what happened in the 1990’s and NAFTA (North American Free Trade Agreement).
Who would gain from the deal though would be multinational corporations who can afford and are able to scale to take on the other countries. Smaller entrepreneurs who cannot afford production and sales overseas would stand to suffer, and thousands of jobs would be lost. The deal hurt many lower wage income workers in the developed nations, as it protected intellectual property rights, making generic products less likely.
By breaking the deal, there is now a competitive advantage for businesses producing domestically. The constant demand for lower cost goods obviously hurts the US, who pays higher wages for its workers. A cutting of the deal will cause domestic companies to compete on quality control and creating products worthy of American standard.
If you create products that rely on a set of craftsmanship and quality, this is a defeat that will help. Products that are made domestically have a greater level of quality check and will level the playing field. Stopping the TPP also encourages more local purchases, which will help stimulate the local economy.
One of the major issues that face a globalizing world is that in terms of economics, it generally favors developing nations who have opportunity for a larger potential market, and favors large companies with factories and warehouses already in place to take advantage of faster production to continue cornering their market. A break from the TPP should see more jobs staying within the country and a fairer playing field for newer startups and entrepreneurs, like many here with a Youngry state of mind.