If the U.S. had stayed in TPP, the country’s real income would have increased by $131 billion annually, according to the Peterson Institute for International Economics. Now, “the United States not only forgoes these gains but also loses an additional $2 billion in income because US firms will be disadvantaged in [CPTPP] markets,” the think tank said in a February report.
Trump has repeatedly said joining the pact would not have been good for his country. The venture, according to the president, would have damaged U.S. manufacturing, added to the trade deficit and sent American jobs overseas.
If the CPTPP’s roster of participants grows, the pressure on U.S. goods overseas would likely keep rising.
The United Kingdom, for one, has said that it is considering becoming a CPTPP member. The deal can help ensure “that a trade war in the Pacific does not hit British households in the pocket,” the U.K. Department for International Trade said in a Sunday statement. It would also help U.K. businesses expand into new markets at a time when the country may no longer have special privileges with the E.U.
“I’ve never seen such nervousness in the U.S. business community as I see now,” Steve Okun, senior advisor at McLarty Associates, an international trade consultancy, told CNBC last week, referring to developments such as the CPTPP. There is a sense that “the world is moving forward without us,” he said.