Politico: World Prepares to Move on Without US on Trade

The global supply chain benefits form elasticity. If one country does not supply a product, then buyers quickly search for substitutes. After the United States stepped back from the Trans-Pacific Partnership, countries like New Zealand, Australia and Canada continue to meet to negotiate a deal and fill the vacuum. “New Zealand seizes the opportunity to send more of its milk and cheese to China,” explains Adam Behsudi for Politico. “Japanese consumers pay less for Australian beef than for American meat. Canadians talk about sending everything from farm products to banking services to Japan and India.” More than 12 countries met in Chile. The United States could lose export sales, and it’s almost as if the United States is pushing market share and money toward its competitors, suggested one Canadian representative. Behsudi expects a US embassy representative to investigate the possibility of pursuing bilateral trade deals and report back to the Trump administration. But for any big multilateral deal, the United States won’t be involved in developing rules and standards. And if the other countries reach agreement, US firms could move operations to Canada, Mexico or other nations to reap the benefits. – YaleGlobal