President Donald Trump’s executive order this week which pulled the United States out of the Trans-Pacific Partnership (TPP) could have implications for South Carolina, according to economists.
University of South Carolina business economist Bill Hauk told South Carolina Radio Network that the U.S. not taking part in the trade agreement could trickle down to one of the state’s largest manufacturers.
“Boeing really exports its 787 all around the world and there is increasing demand for that in Asia,” Hauk said. “If the rules of doing business in Asia are not harmonized, that could potentially make things difficult for Boeing.”
He said that the state may not see feel many affects in the short-term. “The immediate impact may not be all that large on South Carolina,” said Hauk.
Critics said the TPP would put corporate interests ahead of public and national ones.
Japan ratified the agreement last week, but the remaining 11 countries like Canada, Mexico and east Asian nations are waiting to see what America — the largest participating country will do
Hauk said not ratifying the trade agreement means the U.S. will not help write the rules of international commerce. “I think the bigger issue is this signals to the world that the United States may not be all that interested in pursuing trade agreements,” Hauk said. “Not ratifying the treaty basically just means we’re going to keep pursuing the status quo.”
On his first full weekday in office Monday the president indicated his plans to follow through on campaign promises to take a more aggressive stance against foreign competitors.