President Donald Trump signed a sweeping overhaul of the country’s trade rules Thursday, reversing decades of precedent and creating a regulatory vacuum that could open up a flood of goods and services from China.
The measure, known as the Trans-Pacific Partnership (TPP), will likely set the stage for a new era of protectionist trade policies by the U.S. and China, which have been locked in a decades-long trade war.
The pact would open up markets for American goods and could allow China to take more control over U.s. markets, potentially causing major disruptions in the global economy.
The legislation also would prohibit foreign companies from dumping goods into U. s markets, but Trump promised to protect U. states markets from foreign competition.
“We will take our businesses out of China and we will protect our workers,” Trump said at the signing ceremony.
The president said he wants the TPP to “create a safe environment for American workers, our industries and our future.”
The TPP, which is being negotiated by the United States and 10 other countries, would replace the North American Free Trade Agreement, which was signed by former President Bill Clinton in 1993 and was later renegotiated in the 1990s.
Trump has been one of the few Republican presidents to sign the trade deal.
Under the pact, U. S. businesses would be able to sell goods in China, but those companies would have to use tariffs to offset the costs of importing the goods.
The deal also would eliminate the current ban on imports of American goods from countries like Mexico and Canada.
Trump signed the legislation Thursday morning, a day after announcing he would withdraw the United Nations from the deal.
Trump said the TPP was designed to create a “safe environment for our people and our businesses,” but critics have said the agreement is designed to benefit foreign investors and corporations at the expense of American workers and companies.
The White House said Trump would work with Congress and the Obama administration to review the TPP and revise it to ensure the United Sates interests are being served.
The move comes as Trump’s administration faces intense scrutiny over its handling of the opioid crisis.
Trump announced last week that he was pulling the U’s involvement from the Trans Pacific Partnership, which he had called a “disaster” in May.
The announcement came amid reports that the Obama Administration had approved more than 2,400 American jobs and a $15 billion aid package to the country in recent weeks.
The Obama administration, which had been seeking to revive the TPP, said it would continue negotiating a deal.
“I don’t know if it was all good news for the American worker, but it was good news to our partners in the Trans.
Pacific Partnership,” Trump tweeted Wednesday.
The new bill is the latest in a series of trade and trade-related moves by Trump.
He has taken steps to impose tariffs on imports from China, while the president’s son-in-law, Jared Kushner, has signed a series in which companies with large foreign holdings would have more power to challenge U. and Chinese policies in U. state courts.
The Trump administration is expected to announce more regulations in the coming months, including rules for how companies can bid for federal contracts and whether the Federal Trade Commission can intervene to prevent companies from taking jobs from U. workers.
Trump is also expected to withdraw the U.’s role from the World Trade Organization, which Trump had sought to establish in a bid to reduce tariffs on goods from foreign nations.
Trump’s new trade deal, however, is likely to spark criticism from U of S economists who say it will harm the U s economy.
“There is not much hope for the U of s economy as a result of this trade deal,” said Peter Navarro, the director of the University of California at Berkeley’s Mercatus Center.
“The trade agreement will likely harm the American economy and undermine U s economic competitiveness.”
The bill would also force companies to reveal their foreign profits and their tax rate to the government.
Trump was criticized in May after he signed an executive order aimed at eliminating tariffs on Chinese goods, prompting critics to question whether the move was in the Us best interest.
But a White House official later told reporters the new tariffs were intended to give businesses a more competitive advantage and to “strengthen our trade relationship.”
The administration is also seeking to expand the definition of who is a U. citizen to include companies with foreign employees, including those who are temporary workers, who may be in the country legally and do not have permanent U. employees.