In 2019, the United States made the decision to withdraw from a 30-year trade agreement with Japan known as the Trans-Pacific Partnership (TPP). The trade agreement, which involved twelve countries in total, was signed in 2016 with the aim of reducing tariffs and creating a more open and fair trade environment in the Asia-Pacific region.

The decision to withdraw from the TPP has had a significant impact on the relationship between the United States and Japan, as well as on the global trade landscape. Here are some of the effects of America`s withdrawal from the trade agreement:

1. Lost Economic Opportunities

One of the main reasons why the TPP was created was to boost economic growth by promoting free trade. By withdrawing from the agreement, the United States lost the opportunity to access new markets and increase exports to countries in the Asia-Pacific region. This has resulted in decreased economic growth for the United States and limited opportunities for American businesses to expand their presence in the region.

2. Strengthened Japan`s Leadership Role

With the United States out of the TPP, Japan has stepped up to fill the leadership void. Japan has made efforts to salvage the agreement, even without the United States, and has been focusing on strengthening trade ties with other TPP countries. Japan is now viewed as a leader in promoting free trade in the Asia-Pacific region.

3. China`s Increased Influence

The United States` withdrawal from the TPP has also given China the opportunity to increase its influence in the region. China has been working to establish its own trade agreements with countries in the region, including the Regional Comprehensive Economic Partnership (RCEP) which includes 15 countries. By not being part of the TPP, the United States has lost the opportunity to counterbalance China`s influence in the region.

4. Impact on US-Japan Relations

The TPP was seen as a symbol of the strong economic and political ties between the United States and Japan. With the United States pulling out of the agreement, it has strained the relationship between the two countries. There has been concern that the US withdrawal from the TPP has signaled a lack of commitment to the Asia-Pacific region, which could lead to Japan looking for other allies in the region.

In conclusion, the United States` withdrawal from the TPP has had a significant impact on the global trade landscape, particularly in the Asia-Pacific region. It has led to lost economic opportunities for the US, strengthened Japan`s leadership role, increased China`s influence, and strained the relationship between the US and Japan. As the global economic climate continues to evolve, it remains to be seen how these effects will shape the future of global trade.