East Asia’s agreement to keep the world economy open
What the Trump administration will ultimately do to the shape of the global trade regime is difficult to foretell but there’s no question that it will change it forever, even if there is strong global push-back against Trump’s threat to unravel trade agreements and carry a protectionist stick. The trade regime, and the way in which it encourages open trade and international interdependence among those who sign on to its rules, is not simply an instrument of economic policy strategy that can be changed without political consequence. For most countries, and certainly those in East Asia which are so dependent on open trade to sustain their basic livelihood, the trade regime is a critical instrument of political security. Trump has already signed executive orders to withdraw the United States from the Trans-Pacific Partnership and renegotiate the North American Free Trade Agreement. What appeared noisy campaign rhetoric has been transformed into concrete action.
