ObamaTrade Is Dead: White House Abandons TPP As EU Halts Trade Talks After Trump Victory

Tyler Durden's picture

It appears the entire 'ObamaTrade' farce is collapsing under the weight of its secrecy and corporatocracy in the immediate aftermath of Trump's triumph. First this morning, Bloomberg reported that EU Trade Commissioner Cecilia Malmstrom said EU-U.S. negotiations on a free-trade agreement are on hold, and now WSJ reports that the Obama administration on Friday gave up all hope of enacting its sweeping Pacific trade agreement, denting American prestige in the regions at a time when China is flexing its economic and military muscle.

Just days after Donald Trump won the election, all of Washington's major trade deals are dead or dying.


First, NAFTA

As Joe Joseph reports, both Mexico and Canada have agreed to re-negotiate the North American Free Trade Agreement (NAFTA) signed under President Clinton.

You have the Canadian Prime Minister and his Mexican counterpart that are now saying, “hey buddies… hey United States… we want to renegotiate NAFTA.”

 

…Maybe, just maybe, we might actually have a little bit of justice… he hasn’t even taken the oath of office yet.

Second, TTIP

Trump lashed out at market-opening initiatives such as the planned Trans-Atlantic Trade and Investment Partnership, or TTIP, during his successful campaign to succeed U.S. President Barack Obama. Trump, the Republican Party’s candidate, defeated Democrat Hillary Clinton in the Nov. 8 election.

 

“With the new president-elect, we don’t really know what will happen,” Malmstrom told reporters on Friday in Brussels. “There is strong reason to believe that there will be a pause in TTIP, that this might not be the biggest priority for the new administration.”

 

The EU and U.S. have spent three years working on an accord to expand the world’s biggest economic relationship by eliminating tariffs on goods, enlarging services markets, opening public procurement and bolstering regulatory cooperation. Obama and European leaders such as German Chancellor Angela Merkel had called TTIP a policy priority.

 

Both sides have held 15 rounds of talks since 2013. The last round took place in October in New York.

 

“Whether it makes sense to have new rounds -- well probably not,” Malmstrom said on Friday.

And Finally, TPP

 Just days after Donald Trump surprise victory, U.S. officials said Republican congressional leaders had made clear that they wouldn’t consider the 12-nation Trans-Pacific Partnership in the remainder of Mr. Obama’s term. The White House had lobbied hard for months in the hope of moving forward on the pact if the Democratic nominee, Hillary Clinton, had won.

 

The failure to pass what is by far the biggest trade agreement in more than a decade is a bitter defeat for Mr. Obama, whose belated but fervent support for freer trade divided his party and complicated the campaign of Mrs. Clinton.

 

The TPP’s collapse also dents American prestige in the region at a time when China is flexing its economic and military muscle.

The 2016 election season has shown that domestic concerns about globalization, the trade deficit and stagnant wages easily beat out the appetite for international engagement. The TPP became a symbol Washington pursuing policies that disproportionately favor wealthier Americans over ordinary workers. Mr. Trump blamed the TPP on special interests trying to “rape” the country.

As we detailed previously, Trump was right on Trade Agreements.

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Chris Dakota's picture
Chris Dakota (not verified) ACES FULL Nov 11, 2016 6:31 PM

"you're going to get so tired of winning"

lol................................... Donald!

Dead Canary's picture

Global warming is getting SO bad, now the sea level is rising TWICE A DAY!

Normalcy Bias's picture

Wasn't NYC supposed to be under several feet of water 15 years ago?

D Nyle's picture

Give it time, the Liberal Tears have just started

roxyNL's picture

 

This is the end of US Dominace as a globalpower

China will takeover asia !

America will never be Great Again

The majority of Americans don't realise that the majority of these trade deals are in favor of the US and its exhorbitant privelege (the fact that they are the issuer of the global trade currency). This kind of move will just push emerging countries to other mean of exchange than the USD ... by feedback the US power will wane !

until the 90 the US was the main producer of the advanced technologies in the world. Today you can buy the majority of what the US produced in Europe, or Asia. If you want to close your borders you and only you will suffer !

Boeing - alternative :Airbus

Apple - alternative : Samsung - LG HTC

Cisco - alternative :Huawei - ZTE - Ericsson

Ford - alternative : VW - Toyota

... 

Motasaurus's picture

As an Australian I want to say "thank you" to everyone in the United States. 

Our government was all-in on the TPP and there was no support for stopping it from any group in this country. I have to say thank you so much for killing that thing. 

philipat's picture

Same in NZ, which at least had the decency to publish TPP in all its gory detail. I never really understood why Australia and NZ would go for TPP and, indeed, why the Governments there are so subservient to the US to the point of embarassment? That could equally be asked of most Governments in Europe who are happily shooting themselves in the foot implementing US sanctions against Russia (as a result of a CIA coup in Ukraine to unseat an unsavory but nonetheless democtratically-elected leader), which hurt ony Europe and not the US?

Diatom's picture

"We give them bags of money..."

Paul Craig Roberts

Urban Redneck's picture

Who's your Head of State?   Who started the Great Game? 

The WASP team changed captains sometime in the last century, but the game never ended, only expanded.

BabaLooey's picture

It's because Soetero is NOT an American.

Period.

He isn't.

Time is a great truth teller.

In time, it will come out.

How Soetero IS a fraud. How EVERYTHING he's done - along with his henchmen, is and was, BAD for America.

How the deep state foisted this piece of shit on the world.

I'm chewing through this over the weekend;

http://theamericanreport.org/2015/08/19/clues-unlock-obama-id/

Read it. 

Déjà view's picture

Australia/NZ...

1. Does NOT produce many industrial goods. Last motorvehicle producer has or is just about to turn out lights. Trade agreement Would HAVE benefited U.S. more than Australia/NZ.

2. Australia has free trade agreements with ASEAN and Mexico...

3. AT/NZ export mostly commodities...any tariffs on commodities?

Mexico has free trade agreements with 45 nations encompasing 60% of worlds population, where will industrial jobs migrate to? What is Trump going to do...tell Mexico to void their agreements?

http://www.gob.mx/se/acciones-y-programas/comercio-exterior-paises-con-t...

HowdyDoody's picture

http://www.zerohedge.com/news/2016-11-11/obamatrade-dead-white-house-aba...

"I never really understood why Australia and NZ would go for TPP and, indeed, why the Governments there are so subservient to the US to the point of embarassment?"

There you have it - Merkel Syndrome. WTF does the US have on them? Maybe it is as simple as showing them the real JFK tapes?

Anyway, if TPP/TTIP is dead, that is the economic equivalent of a nuclear strike averted.

Amicus Curiae's picture

seconded heartily

though i hear the termite Bishop n the Turd ball are still hopeful

fn idiots

sooner theyre ousted  the better

you notice the ONLY things turd raved up was our military dagging of ussa and commitment to  keep  doing so?

wondering if Trump will halt the f'd 35s?

roxyNL's picture

 

Now that free markets are not anymore in US favor you want to go back to protectionism. Be a man and admit that you just lost to your own game. without US financial and corporation dominance, the US is done !

you won't be able anymore to print wortless bonds and paper dollars and but whatever you want !

 

D Nyle's picture

LOL. roxyNL when all american products in Asia including Japan have a 300% tarrif on them it will be easy to shut them out, also since America supplies 45% of all of China's grains (Rice, wheat, oat, soybean), it would only take 3 weeks to cause the collapse of China

roxyNL's picture

 

Man, your weed is pretty strong ! China is almost self sufficient for its food, otherwise they can trade with russia, india, canada, europe, australia and ASEAN nations.

https://en.wikipedia.org/wiki/Agriculture_in_China

Agriculture is a vital industry in China, employing over 300 million farmers.[1] China ranks first in worldwide farm output, primarily producing rice, wheat, potatoes, tomato, sorghum, peanuts, tea, millet, barley, cotton, oilseed and soybeans. Although accounting for only 10 percent of arable land worldwide, it produces food for 20 percent of the world's population.

 

D Nyle's picture

Wrong, 

http://www.iatp.org/documents/the-need-for-feed-china%E2%80%99s-demand-f...

I read Finacial news to get correct info, wikipedia can be edited by anyone

 

But this is from your wiki article  "China is the world's largest importer of soybeans and other food crops"

OliverAnd's picture

Please let us know which products are taxed 300% in China and Japan.  The reason to why the American dollar is the international currency was not due to isolation, but the exact opposite.  With 21 trillion dollars in public debt and another 18 trillion dollars in private debt any mishap in the global economy will have detrimental effects on the American economy.  The FED can print money but at one point it will be no different than Venezuela where a meal at a restaurant requires a bag of money.  While you can argue that products produced will be much cheaper to international markets, long before you know it most of the brightest citizens with new ideas will leave for countries that offer better wages.  At this point you will have many manufacturing jobs but purchase power will be much lower.  Let's say that today you need to work one week to buy a phone; with inflation and stagnant wages coupled to a devalued currency will require that individual to work one motnth to buy the same phone... in essence the USA will become a third world nation.  It is exactly what the USA had been doing in the past 100 years to other nations.  Another example is Egypt and Nasser chosing isolation. As for American companies in other countries coming back; why?  GM USA vs GM China vs Opel Europe are in essence differnt companies.  If you bought a GM vehicle in Europe and there was a fault you take Opel to court not GM USA or China.  Besides the markets overseas are much larger than the US market.  India 1.5 billion, China 1.5 billion, European Union 1 billion.  As for an arms race, remember that countries like China, India, Russia, etc can produce similar products at a fraction of the price as unions and labor costs are minimal.  In essence the only countries comparible for weapons production is UK, Germany and France.  Remember its not strictly superior technology that win wars, but instaed numbers both in men and weapons (example Russia vs Germany in WWII). Don't get me wrong; I would really like to see Trump succeed for my American brothers who have it rough but he will be no different than Tsipras is for Greece.

D Nyle's picture

look at the cost of a chevy camaro in any of the asian countries and get back to me

 

 

OliverAnd's picture

Look at the engine.  Anything over 1.8 liters yes for 'environmental' purposes.  Anything with engines under 1.8 liters is priced similarly to US market... and in some cases less.

Diatom's picture

EU 500 million

India 1.2 billion

China 1.38 billion

Diatom's picture

Biggest grain producer in the world 2016:

Russia. (and expanding...) It obliterate inthe next years the american

gmo shit...

 

scsherman's picture
scsherman (not verified) roxyNL Nov 11, 2016 10:37 PM

Your examples are all terrible. Consumer electronics have been made in Asia for over 50 years. Automobile globalization has been taking place for at least as long. Boeing is doing just fine. IF anything, the international aviation industry has consolidated even more since the 90s. The real problem is that most of the industrial equipment and expertise has been shipped overseas. The steel plants, the large construction and engineering firms, etc. Consumer goods are small potatoes. It is the industries that supply raw materials and industrial infrastructre that are what the US has truly lost.

Creative_Destruct's picture

"The majority of Americans don't realise that the majority of these trade deals are in favor of the US and its exhorbitant privelege.."

YEP  our "exorbitant privilege".... our Multinational Corporation privilege that is.... CAPITAL and the 1% advantage waaaaaay disproportionately over labor.

" until the 90 the US was the main producer of the advanced technologies in the world. Today you can buy the majority of what the US produced in Europe, or Asia"

Connect the dots dude.... this is THE period of MAJOR MNC expansion under Clinton, Greenspan, Rueben, Summers, et al "free trade" policies...

Free trade is a good thing... but not when it is twisted into an exploitative, distorted, monster, configured in favor of the elitists.

HardAssets's picture

Maybe, just maybe . . . America will live up to her original vision. A place where one didn't have to be privileged royalty to succeed. A place where the common man could live as he chooses (as long as he doesn't harm others). Kings around the world hated that idea & ideal of America. They didn't like that it could inspire their own 'subjects' thinking. And that's why the globalist hate and fear this 2nd American Revolution.

Remember that man in Tiananmen Square who stood up to the tank ?

Yeah, that's what they're afraid of.

kiwigal's picture

The trade deal definitely benefited U.S pharmaceutical companies, that's why a lot of people down under objected to it. It would have meant longer waiting times on patents,higher costs for us. There was a lot of distrust of the agreement as a lot of it was unknown and it was perceived to be beneficial to the U.S. No doubt it would have been the same old story, select special interest groups benefited. It's hard to believe after what was revealed in Wiki Leaks that any leaders genuinely work for the good of all peoples. 

philipat's picture

"denting American prestige in the regions at a time when China is flexing its economic and military muscle".

So "American Prestige" amounts to forcing a surrender of sovereignty and the subservience of sovereign legal systems to the control of US Corporations (such as are TTIP and TTP)? China enters into trade relationships on a win/win basis and places no political demands on the partner Nation. Perhaps America will now begin to understand and put away the big stick?

There never was any such thing as "Obamatrade", he was just a puppet doing the will of the Oligarchs.

balolalo's picture

TYLERS FIRST OFF... this was a globalist trade agenda.

SECOND... no one wanted TPP.   Not the left or the right.  Globalists did. 

So.... how are the globalists going to counter? 

Will Trump sell out?  Will he end the fed?  or just change management? 

If he doesn't do anything real with the FED then TRUMP CHANGE is DEAD.  

philipat's picture

@balolalo. I thought you were a Shitlery supporter and anti-Trump (from your post history)? Given that she was of the establishment and a proponent of the Global trade deals (despite her latest "public" position on trade) yout latest position appears inconsistent?

balolalo's picture

this is the problem with so many people. 

just because i am critical of trump doesn't mean that i love hillary, nor does it mean i wouldn't be critical of her.   Or obama for that matter.  The bank bailout and  NDA was enough for me to see he was a corporatist/globalist. 

and this snowflake vs deplorable bullshit is just bullshit to rile us up and divide us from each other.  and for us to not keep an eye on those in power. currently trump et al.

the question remains.  if he doesn't do shit with the fed, what will people do?

policies and appointments matter.  btw, PENCE is a military industrial globalist.  keep an eye on him. 

It might have been all hype and CHUMP CHANGE and America fell for it. 

 

J Jason Djfmam's picture

That IS the BIG question.

WILL TRUMP SELL OUT ?

J Jason Djfmam's picture

To be sold by the 55 gallon barrel.

E.F. Mutton's picture

Yes - and San Francisco is already under several layers of homeless urine.  Does that count?

SoDamnMad's picture

There is the teachnology for clean coal and with the same help Tesla and Solar City got we could develop this energy source to be independent.

Ask Uncle Warren if he has ever seen a coal train explode and wipe out a town.

Synoia's picture

No. 15 ft of New Yorkers and their BS.  Jees. Can't you read?

 

That number was passed in 2007.

CaptainObvious's picture

Twice a day?  Oh muh gosh!  I live on this-a here island.  Is it a-gonna flip over and drown all fourteen of muh kids?  Hayuck!

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) CaptainObvious Nov 11, 2016 6:44 PM

"elections have consequences"

~BaraK bin Obomoman

roxyNL's picture

US initiated this global run to free markets, now that they are loosing to emerging nations they want to change the rules of the game !

I don't think that it will work, free markets always wins over protectionism

This is the end of US Dominance as a globalpower

China/russia will takeover the world !


The Saint's picture
The Saint (not verified) Dead Canary Nov 11, 2016 6:36 PM

Obama had great plans to implement more ObamaNomics before he leaves office.  But, since he can't get anything through Congress he is relegated to Executive Orders that will just be reversed in January.

Poor Obama.  He's going to get erased from the history books. (not that students study history anymore)

 

chairman of the bored's picture

you don't know black revisionist history....every modern day gadget was invented by dindoos

The Saint's picture

Well, there is the cotton gin.  Anything else?

johnwburns's picture

Where have Bill Nye and Neil deGassbag Tyson wandered off to anyway?

Debt-Is-Not-Money's picture

Probably in hiding from a real (independent) scientist, James McCanney MS - JMCCSCI.com

FiendNCheeses's picture

I blame the moon. It must be destroyed!!!

Zoomorph's picture

It's already 3 days after the election and Trump hasn't done everything that I wanted him to do, including: kick out the bankers, end the Fed, lock up Hillary, repeal Obamacare, deport all illegal immigrants, etc.

This is proof that he is part of TPTB and we are all doomed to another 4 years of helpless whining on the internet.

ACES FULL's picture

And he hasn't even ended world hunger either, what a loser he is. /s