Trump to scrap TPP on day one

Latest News

US President-elect Donald Trump says he will quit the 12-country Trans Pacific Partnership Agreement on his first day in office.

Mr Trump made the announcement in a video message he described as an update on his transition to the White House and plans for policy implementation in his first 100 days.

He went to the recent election with a commitment not to ratify the trade agreement that took a decade to negotiate and would cover 40 per cent of the global economy. Defeated Democrat candidate Hillary Clinton also went to the election with a commitment to walk away from the deal.

According to Mr Trump, his first 100 days will reflect his stated "US first" approach to policy.

"I want the next generation of production and innovation to happen right here," he said. Mr Trump included scrapping the TPP as a list of executive orders he will enact on his first day in office.

"On trade, I am going to issue our notification of intent to withdraw from the Trans Pacific Partnership; a potential disaster for our country. Instead, we will negotiate fair bilateral trade deals that bring jobs and industry back onto Amercan shores."

Australia already has a bilateral free trade agreement with the US, negotiated in 2004. New Zealand does not.

While Mr Trump's action was largely anticipated, TPP countries, including Australia and New Zealand, have expressed hope in recent days the President-elect would change his position.

New Zealand Prime Minister John Key even suggested the country might consider additional minor concessions to secure US support for the deal.

Australian Trade Minister Steve Ciobo said yesterday the other 11 countries could still proceed with the TPP.