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Trans-Pacific Partnership facing collapse

Trans-Pacific Partnership is facing collapse, after the new US President Donald Trump announced that his country will leave the agreement the very first day he took the office. The Trans-Pacific Partnership was signed by 12 countries that account for about 40% of the world economy, including the US, Japan, Malaysia, Australia, New Zealand, Canada and Mexico. The trade agreement was signed in 2015 in Auckland (New Zealand) and aimed to support the trade in eased conditions of the largest economies in Pacific Basin.

However, according to Trump deal is disaster for USA and instead will be achieved “fair, bilateral trade agreements” with individual countries in the region. This will be returned to the control of the United States on their own economy, jobs and industry.

According to the Australian officials, however, leaving the United States may not cause collapse of the organization. The country participated in summit in Lima, which involved Canada, New Zealand, Mexico, Peru, Chile and several Asian countries.

They have agreed to continue their cooperation, regardless of the decision of the United States, has discussed the possibility of China to replace the largest economy in the world in this agreement.

Trans-Pacific Partnership (TPP) or Trans Pacific Partnership Agreement (TPPA) is a trade agreement among twelve of the Pacific Rim countries—notably not including China. The finalized proposal was signed on 4 February 2016 in Auckland, New Zealand, concluding seven years of negotiations.

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