As the first weeks of the Trump administration unfold, global trade has been in the headlines.
In his first week in office, President Trump announced the United States’ formal withdrawal from the Trans-Pacific Partnership (TPP), and just this week announced he would only be “tweaking” the U.S. trade relationship with Canada. He has promised to renegotiate NAFTA, and has pledged to label China a currency manipulator (which could have massive implications on industry).
What are some of the major global trade deals that exist, and how do they stack up? We take a closer look at three of them:
Trans-Pacific Partnership (TPP)
Initially, 12 Pacific Rim nations excluding China were part of this trade agreement, which has been signed but awaits ratification from the members. The pact was led by the U.S. with former President Barack Obama championing it, but President Donald Trump has since formally withdrawn the U.S. from the agreement.
RCEP: Regional Comprehensive Economic Partnership
16 nations in the Asia-Pacific are included in this China-backed proposed agreement. The RCEP is seen as a rival to the TPP and now the front-runner for new free trade deals in the region.
FTAAP: Free Trade Area of the Asia-Pacific
The deal involves the 21 Pacific Rim nations that are part of the Asia-Pacific Economic Cooperation (APEC), a forum created in 1989 to promote free trade in the Asia Pacific. Part of the deal’s agenda is to build and develop on existing trade frameworks in the region.
View this infographic as it originally appeared from Reuters.
How do Free Trade Agreements (FTA’s) work in reality? Are FTA’s truly effective in facilitating, promoting and growing trade between countries? Explore the data for yourself with our NAFTA interactive.