What is the Trans-Pacific Partnership (TPP) negotiated under Obama and why was it not ratified by the U.S. in 2017?

Checked on December 2, 2025
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Executive summary

The Trans‑Pacific Partnership (TPP) was a 12‑nation trade pact led by the United States under President Barack Obama to reduce tariffs and set “21st‑century” rules on trade, covering about 40% of world trade and negotiated from 2009 until signature in February 2016 (U.S. description; coverage of size) [1] [2]. The U.S. never ratified the TPP because of a hostile domestic political environment—strong opposition from labor and parts of the Democratic base, a difficult congressional ratification path in an election year, and the immediate withdrawal by President Trump in January 2017 that ended U.S. participation [3] [4] [5].

1. What the TPP was: an Obama‑led, high‑standard Asia‑Pacific trade pact

The Obama administration cast TPP as a “next‑generation, Asia‑Pacific trade agreement” negotiated with 11 other countries to open markets, reduce tariffs and set modern rules for digital trade, labor and the environment; the White House and USTR repeatedly described it as central to U.S. economic strategy in the region [1] [6] [3]. Observers and official materials framed TPP both as economic policy—boosting U.S. exports and rules‑setting for digital commerce—and as strategic, intended to shape regional norms and limit competitors’ influence [3] [7] [2].

2. How it was negotiated and signed, but not implemented

Negotiations began under Obama (announced 2009), produced a completed text and a signature in February 2016, and required domestic ratification by member governments — including the U.S. Congress — to enter into force [6] [8] [9]. The agreement’s ratification rules meant the U.S. and Japan had to ratify for the pact to take effect, making U.S. approval politically pivotal [4].

3. Domestic political opposition in the United States

The TPP faced sustained opposition from labor unions, segments of the Democratic Party and populist critics who argued the deal would harm American workers and lacked transparency; commentators and analysts documented skepticism among important domestic constituencies that made congressional passage uncertain [10] [11] [12]. Analysts warned that ratification would be a “steep political battle” during an American presidential election year and that prospects of approval “appear bleak” in that climate [4] [13].

4. The immediate cause of non‑ratification: presidential withdrawal in 2017

Even with domestic resistance, the definitive break came when President Donald Trump issued a memorandum on January 23, 2017, directing withdrawal and ordering U.S. officials to cease participation; USTR and State Department communications confirm the formal U.S. withdrawal and notification to TPP parties that the U.S. would not be a participant [5] [14]. Acting USTR guidance shortly thereafter stated the United States “does not intend to become a party to the [TPP]” and considered the signature non‑binding absent ratification [15].

5. International fallout and the pact’s afterlife

After the U.S. exit, the remaining countries reworked the deal into the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP), which incorporated most TPP provisions and entered into force without the United States; sources say the CPTPP evolved because the original TPP “never ratified due to the withdrawal of the United States” [16]. Analysts at RAND and Brookings argued U.S. withdrawal weakened American strategic leverage in Asia and assisted rival regional initiatives [2] [17].

6. Competing narratives about motives and consequences

Supporters in the Obama administration framed TPP as pro‑jobs, pro‑rules and essential to prevent others—particularly China—from writing trade norms [8] [7]. Critics argued the gains were modest, distributional effects would harm workers, and secrecy and corporate access had distorted negotiations; both perspectives are recorded in the contemporary debate [11] [18]. Post‑withdrawal analyses from think tanks urge reconsideration of U.S. regional economic strategy but note domestic political obstacles remain [19] [12].

Limitations: available sources do not give a full vote‑by‑vote Congressional record showing whether a ratification vote would have succeeded absent the 2017 withdrawal; they do document large domestic opposition and the formal executive withdrawal that made ratification moot [4] [5].

Want to dive deeper?
What were the main economic provisions of the Trans-Pacific Partnership (TPP)?
How would TPP have affected U.S. manufacturing, jobs, and trade deficits?
What were the political arguments for and against TPP within the Obama administration and Congress?
How did the 2016 presidential campaign and Donald Trump's election influence U.S. withdrawal from TPP in 2017?
What became of the TPP after the U.S. pulled out and how does the CPTPP differ from the original agreement?