Biden Administration Outlines Scope of Asian Economic Pact

But some business executives and trade experts have expressed skepticism about whether an agreement that does not lower tariffs can motivate other countries to adhere to the higher labor and environmental standards the Biden administration would like.

Some would instead prefer a multicountry trade deal that strips back tariffs — like the Trans-Pacific Partnership, an Asian trade deal negotiated by the Obama administration. While the Trump administration withdrew the United States from that deal in 2017, the remaining members went on to ratify it, and China has applied to become a member. That and other trade pacts in the region have sparked concerns that the United States is being left out of agreements that are writing the rules of trade in Asia.

The plan also has some critics on the left, who cite the poor labor and human rights records of some of the participating countries, and worry that new trade rules, for example in the digital space, might still enable more American companies to send jobs offshore.

Mary Lovely, a professor of economics at Syracuse University and a senior fellow at the Peterson Institute for International Economics, said that she had been initially skeptical about the lack of market access offered in the framework, but that Asian governments appeared to be motivated to establish new economic ties with the United States as a bulwark against China.

“They do want to see a balance from the U.S. against the very large presence and influence of China,” she said, adding, “They see real problems coming as they look to the future of trade, and they are very happy that the U.S. is talking to them about it.”

Article source: https://www.nytimes.com/2022/09/09/business/ipef-framework-asia-trade.html