Supply Chain News

Trump Pulls U.S. Out of Trans-Pacific Partnership Trade Deal

US President Donald Trump dealt a death blow to the Trans-Pacific Partnership, a trade deal being negotiated between 12 nations who represent more 40% of the global economy.

President Trump’s first executive action was to pull out of the Trans-Pacific Partnership today, generating a mixed reaction from trade and supply chain analysts.

Harry J. Kazianis, Director of Defense Studies at the Center for the National Interest, (a Washington DC think tank) told Logistics Management that with the U.S. leaving the trade pact – a massive deal that would have included close to 40% of world trade, or roughly $28 trillion – the agreement is now “ancient history.”

What happens next will be vital for the Trump administration, he adds,

“We must remember, TPP, at its core, was never about trade,” he says.

“It provided very little economic benefits to the United States, as Washington already had many trade agreements with the various signatories of TPP.”

Kazianis maintains that TPP’s real goal was to demonstrate to our Asian trading partners that the U.S. was providing a “safety blanket” – insurance that Washington was in Asia to stay, as China continues its aggressive expansion policies in the region.

U.S. President Donald Trump has acted on his promise to cancel America’s participation in the Trans-Pacific Partnership (TPP). He considers the free trade agreement, that hadn’t come into effect yet, as a threat to the U.S. economy.

Whether this is true or not, America is already trading with the proposed member countries and jobs are on the line. According to the International Trade Administration, many jobs are supported by exports to direct neighbors Canada and Mexico, which are also members of NAFTA.

Importantly, China wasn’t one of the countries taking part in the TPP agreement. Some proponents of TPP saw the pact as an active counterbalance to China's economic dominance in the region. So from some observer’s perspective, also with Mr. Trumps China–critical rhetoric in mind, his actions might actually be welcomed by the Chinese government.

 

For Rosemary Coates, president of Blue Silk Consulting and author of Rules for Sourcing and Manufacturing in China. just the opposite reaction may take place.

“Outside influence and funding from USAID and other organizations is  important to continue this trade standardization work and stabilize this region,” she says.

Rosemary Coates, President of Blue Silk Consulting and Executive Director of the Reshoring 

Institute

“China will step in to fill the void, influence and accelerate the development across Asia”Rosemary Coates, President of Blue Silk Consulting

“But it is very likely with the US backing away from TPP and other trade deals in the Pacific under the new Trump administration, China will step in to fill the void, influence and accelerate the development across Asia.”

Chris Rogers, a Research Analyst for Panjiva, an online search engine with detailed information on global suppliers and manufacturers,  says Trump may still “strike a less immediately hawkish tone” than during or since the election campaign.

“With regards to NAFTA the notice-to-withdraw is being held back as a threat if negotiations are refused,” he observes.

“The commitment to have the Department of Commerce take a more rigorous line on trade violations remains, but it nonspecific.”

Brandon Stallard, CEO of TPS Logistics, a Troy, Mich.-based third party logistics management provider with global operations, agrees that NAFTA might be different story.

“We support our president, and it looks like he’s doing the right thing about getting out of the TPP. We were not about to enter a level playing field, and most of U.S. manufacturing was not going to gain much by participating.”

Stallard believes that NAFTA is “a different ball game,” however.

“Here in Michigan, our automotive suppliers recently got together and concluded that President Trump is a real businessman. He’s not going take any chances with hemispheric supply chains if they are really working.”

Related TPP 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
Best Practices   Supply Chain   Global Trade   Trans Pacific Partnership   All topics


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

About the Author
Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
 
Latest Supply Chain News
Amazon’s Ever-Increasing Ecommerce Shipping Costs
Amazon is growing fast, and so are the costs of getting people the products they order from the online ecommerce retailer, and as time goes by, Amazon has to spend a higher percentage of its net sales…

Navigating Ecommerce with Your Existing Supply Chain Relationships & Capabilities
The rules for success in e-commerce and omnichannel fulfillment are still being written, however, you can minimize the risks and costs of scaling your operations, and get to market faster, by leveraging…

Using Your Logistics Expertise as a Competitive Weapon When It Comes To Ecommerce
Customers have unlimited buying options at their fingertips - speed to serve, product availability & customer experience have become the new tools in the seller’s arsenal to maintain market competitiveness.

Amazon Begins Grocery Delivery from Whole Foods Market
Amazon plans to roll out two-hour delivery at Whole Foods this year to those who pay for Amazon's $99-a-year Prime membership and is the company's biggest move since it bought the organic grocer last year.


 

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
  • 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