Trump Officially Kills TPP
Making good on a campaign promise, President Trump cancelled an agreement for the Trans Pacific Partnership (TPP) on Monday in one of his first official White House actions. While the deal was not likely to make it through Congress, the cancellation reaffirmed Trump’s tough talk on trade.
Analysts suggest that cancellation of the TPP agreement may have an impact on further trade negotiations, especially as it relates to the North American Free Trade Agreement (NAFTA). Trump is expected to meet with leaders of Canada and Mexico soon to discuss opportunities to revise NAFTA.
Both Canada and Mexico are top-three importers of dairy products from the U.S., and any revision of trade policy could have significant impacts on future trade opportunities. Because the U.S. dairy industry relies heavily on trade markets to soak up burgeoning supply and maintain prices, dairy producers should look to any changes in trade agreements with trepidation.