Supply Chain News

A Day of Action Sets the Tone for Future Trade

President Trump’s withdrawal from the Trans-Pacific Partnership amounts to a drastic reversal of decades of economic policy in which presidents of both parties have lowered trade barriers and expanded ties around the world.

On his first full weekday in office, President Donald Trump swiftly abandoned the Trans-Pacific Partnership (TPP) with an executive order, standing by his Inauguration speech that “now arrives the hour of action."

President Trump also signed an executive order to renegotiate the North American Free Trade Agreement (NAFTA).

The orders fulfill the pledge Trump made in mid-November to immediately make dramatic changes and put “America first” on his first day in office.

During last year’s campaign, Trump sharply criticized TPP, touting it as a bad deal for American workers.

Although the deal was not approved by Congress when Trump took office, the decision to withdraw at the start of his administration signals his approach to global trade upheaval.

It also sends signals to the world that a new order of protectionism is imminent; causing other countries to react in the same manner - drawing comments from other major economies.

Read: 5 Global Trade Management Trends to Watch

President Obama pushed to get the TPP trade deal signed before he left office. Obama and his supporters argued the pact would open growing foreign markets to American businesses, but Republicans said it would benefit wealthy corporations at the expense of workers and the environment.

President Trump’s withdrawal from TPP amounts to a drastic reversal of decades of economic policy in which presidents of both parties have lowered trade barriers and expanded ties around the world.

Had TPP moved forward, it was expected to open up trade among 11 Pacific Rim nations that were part of the deal - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam - which together account for roughly 40 percent of the global economy.

The immediate impact of both directives is hardly noticeable. TPP was "dead on arrival" (Trump’s arrival). Mexico’s President and the Canadian Prime Minister have already declared their willingness to collaborate in a re-negotiation of the decades-old NAFTA.

This trade agreement was first negotiated by the elder President George Bush and pushed through Congress by President Bill Clinton. NAFTA has been a major driver of American trade for nearly 20 years, but it has long been divisive with critics blaming it for lost jobs and lower wages.

The most important effects of Trump’s trade moves will likely come in the medium-term, as the tone of trade renegotiation is set during meetings with Mexican and Canadian officials. Leading Mexican economic officials are booked to meet with members of the Trump administration this week, and the Mexican President will meet with Trump on January 31.

On the campaign trail, Trump called NAFTA “the worst trade deal the U.S. has ever signed” and vowed to renegotiate or rip it up. The rules governing the free trade agreement allow any country to withdraw simply by notifying other parties. This would start a 180-day clock to allow for new negotiations. If no new deal is reached by then, the accord would be dissolved.

Read: NAFTA 20 years later

Canada has stated it expects to keep its 1989 bilateral free trade agreement with the U.S. even if Trump withdraws from NAFTA. Both Presidents of Mexico and Canada are coordinating efforts to protect an economically integrated North America.

News service AFP reported that in a call to Canadian Prime Minister Justin Trudeau, Mexico’s President Pena Nieto “stressed how important Mexico’s relationship with Canada is, as well as (the importance of) the free trade agreement and free flow of investment capital.” Both leaders “agreed to redouble efforts to continue fostering economic integration in North America.”

All signals show stakeholders are preparing for a NAFTA renegotiation - a lengthy, technical process to begin quickly and on the right foot.

For global trade professionals, these shifts (and the many more to come) make it even more crucial to automate your supply chain and support it with up-to-date trade content to ensure compliance.

Related: 5 Global Trade Management Trends to Watch

Related White Papers

Download the Paper

Bracing for Instability in Global Trade for 2017
As we move into 2017, global trade management executives need to brace against disrupters that have the potential to send supply chains into tailspin. Download Now!


Download the Paper

Supply Chain Visibility & Total Landed Cost in the Global Supply Chain
Global shippers are well aware of the number of new trade agreements being inked that will make it easier for U.S. organizations to not only source product from emerging markets, but also open the door to deliver goods into quickly growing consumer bases. Download Now!


Article Topics
Trends   Supply Chain   Global Trade   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Supply Chain News
Providing eCommerce Merchants Access to Cross-Border & International Parcel Solutions
SEKO Logistics is partnering with ShipStation, the world’s leading web-based eCommerce shipping solution, to increase its eCommerce merchants’ ability to grow in new cross-border markets.

A Leader in the 2018 Control Tower Value Matrix
After examining the entire vendor landscape, Nucleus Research once again placed E2open in the Leaders Quadrant of their Control Tower Value Matrix and ranked us as the vendor with the highest functionality.

Monthly Imports Reach 2 Million Containers for First Time as Retailers Continue Rush to Beat Tariffs
Imports at the nation’s major retail container ports have set another new record, reaching 2 million containers in a single month for the first time as retailers continued to bring merchandise into the…

Gartner’s Magic Quadrant for Multienterprise Supply Chain Business Networks Report
Uniquely positioned to assist companies with their digital transformation initiatives, E2open ranked as the leader with the highest overall score in Gartner’s magic quadrant for multi-enterprise supply…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles