As the U.S. remains focused on reworking the North American Free Trade Agreement (NAFTA), and to a lesser extent, the U.S.-Korea Free (KORUS) Trade Agreement, the Trans-Pacific Partnership (TPP) is heading closer to reality.
TPP was worth an estimated $4 billion annually to U.S. agriculture. However, upon taking office ten months ago, President Donald Trump withdrew the U.S. from the massive trade agreement.
Now, CNBC reports the 11 remaining partners included in the agreement could finalize the accord without the U.S. next month.
A trade policy expert at the Asia-Pacific Economic Cooperation says there is “reasonable chance” the 11 nations will finalize the agreement. The effort is being led by Japan.
The original framework, which included the U.S., required formal consent by six nations that account for 85 percent of members’ combined gross domestic product. Without the U.S., that condition now needs changing.
However, even if a change is finalized, allowing TPP to move forward, trade experts expect the deal won’t be in place for at least another year.
From the National Association of Farm Broadcasting News Service.