Biden Vows to Push Forward with Pacific Trade Pact Amid China’s Influence Concerns
U.S. President Joe Biden has pledged to continue his efforts to advance the Pacific trade pact as he seeks to counter China’s growing influence in the region. Speaking at the Asia Pacific Economic Cooperation (APEC) forum in San Francisco, Biden emphasized the need for high-quality trade that promotes workers’ rights.
However, his vision for a regional deal to counter China’s influence has faced setbacks. Biden’s administration had hoped to establish a 14-nation Indo-Pacific Economic Framework (IPEF) trade deal, but member countries could not agree on key issues such as labor and environmental standards.
Despite the challenges, Biden remains committed to the pursuit of an IPEF trade deal. US Deputy Trade Representative Sarah Bianchi stated that negotiations would be recalibrated and an accelerated timeline would be pursued in order to reach a final agreement.
The launch of the IPEF by the Biden administration was aimed at enhancing economic engagement with Asia following former President Donald Trump’s withdrawal from the regional trade pact in 2017. Biden seeks to strengthen U.S. support for multilateral groups like APEC and the International Monetary Fund (IMF), a stance that could face opposition from Republican Trump, who may run against Biden in the upcoming presidential election.
At the APEC summit, Biden announced several agreements, including a supply chain agreement to identify bottlenecks before they disrupt global trade, as well as initiatives to accelerate clean energy transitions and combat corruption. Additionally, an investment accelerator was launched to attract private capital for investments in clean energy and technology.
Biden highlighted the economic importance of the Asia-Pacific region, stating that 60% of U.S. exports go to APEC countries and that U.S. businesses are the largest source of foreign direct investment in these economies.
Trade ministers from Trans-Pacific Partnership countries, now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, also held discussions this week. They welcomed new members who are willing to meet the trade group’s standards. However, free trade deals have taken a backseat in the Biden administration’s agenda due to pressure from labor groups.
The ongoing strategic rivalry between the United States and China, the world’s two largest economies, is closely watched by APEC members. Biden’s recent summit with Chinese President Xi Jinping aimed to stabilize strained relations, with Biden emphasizing the importance of a stable U.S.-China relationship for the world. He assured that the U.S. is not seeking to decouple its economy from China but rather de-risking and diversifying its engagement.
Richard Adkerson, CEO of Freeport-McMoRan Inc, expressed optimism about improving relations between China and the United States, but underlined the need to wait and see if this marks a watershed moment.
In conclusion, President Biden remains determined to make progress on the Pacific trade pact as part of his strategy to counter China’s influence in the region. While challenges have arisen in the pursuit of an Indo-Pacific Economic Framework trade deal, negotiations will be recalibrated to reach an agreement on labor and environmental standards. Biden believes that a stable U.S.-China relationship is beneficial for both countries and the world as a whole.
