Gregory Daco, Chief US Economist at Oxford Economics, explains the different concerns brewing from Trump's possible decision to pull out of the Paris Climate Accord. Following is a transcript of the video.

Well, we’ll see later today, but the main decision or the thought decision is that he will pull out of the Paris Accord. That would be, I think, a big step back in terms of the United States’ position when it comes to leadership and climate change.

Hi, my name is Gregory Daco and I'm chief US Economist at Oxford Economics.

It does have broader implications when it comes to climate change in general, but it also means that the United States is increasingly growing into an isolationist position. And that will have implications when it comes to relationships on a geopolitical front, on an economic front, on a trade front.

Positions that are isolationist generally are not conducive to growth. But more importantly, perhaps, if you think about the climate change issue it's very important for the United States to lead the way when it comes to climate change. It is one of the biggest economic powers out there and if China or other major economies see the US moving in the wrong direction in terms of climate change, I think it wouldn't be a good sign for the other countries. What's more is that you don't necessarily have to think of climate change in business activity as being things that can't be compatible. I think they very much can be compatible with the right types of incentives.