7 treaties and relationships that might be affected by Trump foreign policy
There may be a big stick involved in President Trump’s foreign policy, but there is no speaking softly.
Asian markets tanked as news of Donald Trump’s imminent election hit newswires worldwide last night. The Australian markets lost $34 billion. In Japan, the Nikkei was down 4.8 percent, while the Hang Seng in Hong Kong dropped 2.7 percent. The economic impact wasn’t all bad; gold prices rose sharply – as they often do in times of instability.
The reason for mass market fluctuations is due to the President-Elect’s protectionist rhetoric. Many times during his campaign, Trump blasted the deals made by previous administrations, Democrat and Republican alike. Some he’s simply not a fan of, others he calls a huge mistake. There’s more than one he wants to “rip up” on his first day in office.
During the presidential debate, Trump called the North American Free Trade Agreement “the worst trade deal ever signed.” He said it kills American Jobs. lowers trade restrictions between the U.S. and Canada and Mexico.
NAFTA, signed into law by President Bill Clinton in 1993, lowers trade restrictions between the U.S., Canada, and Mexico. After the debate, Fortune Magazine agreed there was some truth to that statement, though “the truth lies somewhere in between.”
2. Trans-Pacific Partnership
Donald Trump is on the record as not being China’s biggest fan when it comes to business practices. The President-Elect is not down with TPP and was an outspoken critic long before he became a candidate.
The Office of the U.S. Trade Representative told The New York Times the TPP would end more than 18,000 tariffs that the participating countries have placed on American exports, including autos, machinery, information technology and consumer goods, chemicals and agricultural products. It wasn’t very popular among Bernie Sanders supporters, either.
“TPP is now in the history dustbin for sure,” Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, told POLITICO Pro.
3. Iran Nuclear Agreement
The deal that lifted most sanctions imposed on the Islamic Republic is touted as a foreign policy achievement by the Obama administration. Trump was opposed to the deal when it was signed, calling it a “disaster” and “the worst deal ever negotiated.”
In March 2016, he told the pro-Israel lobbying group AIPAC that dismantling the deal would be his top priority.
4. Relations with Israel
While Israeli and American people enjoy close ties, relations between Israel’s Prime Minister Benjamin Netanyahu and Barack Obama were frosty at best. Despite the historically large aid package given to Israel from Obama, The Guardian reports top Israeli leaders welcomed news of Trump’s election.
One of Trump’s campaign promises was to recognize Jerusalem as the Israeli capital and move the U.S. embassy from Tel Aviv to the ancient city.
Russia celebrated the news of Trump’s victory, telling CBS News that President Putin is ready to restore full diplomatic relations with the United States. Trump hinted during his campaign that Europe was not investing enough in its own defense and that the U.S. might not defend its allies so quickly.
NATO Secretary Gen. Jens Stoltenberg made a statement Nov. 9, reminding Europeans – and the incoming President – that the only time the collective defense clause was invoked was because of an attack on the United States.
6. Gulf States
This is one of the most important relationships the U.S. has with allies anywhere in the world. The U.S. Fifth Fleet is based in Bahrain, a Gulf Cooperation Council member. The Fifth Fleet defends the Strait of Hormuz and keeps international trade flowing from the region. Bahrain’s close partner Saudi Arabia has been the target of much of Trump’s criticism.
In August 2015, candidate Trump said he “wasn’t a big fan” of the country and that the United States had paid too much to “back them up.” He believes Saudi Arabia “is going to be in big trouble pretty soon and they’re going to need help. … We get nothing for it and they’re making a billion dollars a day.”
Trump once remarked that he wanted to create a Middle East “safe zone” for refugees and migrants – and that the Gulf States would pay for it.
7. South Korea and Japan
To counter the rising strength of China in the region, candidate Trump announced his intention to maintain the U.S. “rebalance” of power in the region but increase the number of ships in the U.S. Navy from 274 to 350.
To pay for manpower and equipment increases, Trump intends to talk with Tokyo and Seoul about ways they can help pay for it. Some experts fear this may shake the certainty other countries have as U.S. allies, prompting them to seek their own nuclear weapons as a deterrent from Chinese aggression.
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