Vetoing TPP: Trump's trade deal move can cause global recession, says analyst

US President Donald Trump's decision to scrap the proposed multinational Trans-Pacific Partnership (TPP), billed as having potential to add hundreds of billions of dollars to world trade, could kickstart a trend that pummels the world into recession, according to an analyst.Trump, who says the move is bad for the US economy, had made a promise to roll back the pact on the campaign trail and in dramatic fashion, lived up to it.But Michael Every of Rabobank says that the decision could mark the start of a trend of protectionism in the US, which will be bad for emerging markets.Even if it helps the US in the short term, Every said, he doubted the efficacy of the move, because "everybody will do the same, which is [again] bad for emerging markets."This could eventually lead to a global recession, he said.Every says that compared to other EMs, Trump's move to torpedo the TPP may not hurt India as much, as it is not an export focussed country.Under TPP, the United States along with 11 countries that border the Pacific Ocean, were supposed to come under a free trade agreement which was aimed to boosts exports, economic growth and create more jobs.The agreement was estimated to add USD 223 billion a year to incomes of workers in all the countries, of which USD 77 billion was expected to go to US workers.It was also aimed to cut down the trade dominance of China in the Asia-Pacific region, and had excluded the country from this pact.Trump has indicated that instead of entering into multinational trade deals, he would prefer the US signed individual deals with countries."From now, US will have only one-on-one trade and whoever misbehaves will get a termination letter," the US President said.Watch video for more.