As the second decade of the twenty-first century came to a close, optimism about global trade talks began to wane. The United States and several Asian countries had spent years working on the details of a trade framework known as the Trans-Pacific Partnership (TPP). The goal was an ambitious one: to create a free trade area that would lead to long-term economic growth. Meanwhile, the United States and the European Union (EU) were also in negotiations to create a separate free trade area. As with the TPP, the goal of the Transatlantic Trade and Investment Partnership (TTIP) was to kick-start economic growth among the member nations.

Transatlantic Trade and Investment Partnership
The United States and the EU have the world’s largest trading relationship, with their two-way trade in goods and services amounting to more than $1 trillion annually. Nevertheless, the share of trade between the regions had been declining for years, as both sides have increasingly focused on trade in goods and services to China and other Asian countries.
In an effort to increase U.S.–EU economic integration, negotiators sought to forge a “transformative, 21st-century agreement” that would boost the volume of two-way U.S.–EU trade. The rationale was straightforward: A free trade agreement (FTA) that generated more trade would boost economies for all parties. In the United States, business leaders pressed then-President Barack Obama to pursue more trade deals. In Europe, German Chancellor Angela Merkel, former British Prime Minister David Cameron, and other leaders were pushing for a new agreement that would create new avenues for job creation and economic growth across the region.
In 2016, two key events had a direct impact on the future of the TTIP. The first was the British vote for Brexit; the United Kingdom had been one of the strongest advocates of an expanded trade relationship with the United States (see Case 3-1). Shortly after the “Leave” vote prevailed, Prime Minister Cameron resigned. The second pivotal event was the election in November 2016 of Donald Trump as president of the United States. During his campaign, Trump consistently spoke out against trade liberalization. Another presidential hopeful, Bernie Sanders, also included anti-trade rhetoric in his campaign.

Questions
1. Which critical-thinking issues are raised by this case?
2. Are you in favor of dropping U.S. tariffs on footwear, even if it means some New Balance employees might lose their jobs?
3. Do you agree with President Trump’s decision to withdraw the United States from TTIP and TPP?
4. Assess the prospects for regional integration in the Asia-Pacific region.