Current:Home > NewsBiden promises a better economic relationship with Asia, but he’s specifically avoiding a trade deal -Zenith Profit Hub
Biden promises a better economic relationship with Asia, but he’s specifically avoiding a trade deal
View
Date:2025-04-14 01:17:30
WASHINGTON (AP) — President Joe Biden is nurturing economic ties this week with Asia, but he’s not signing any trade deals at a regional summit in San Francisco.
This fact — no trade deals — reveals a lot about the status of U.S. politics, the evolving global economy and the Biden administration’s own ambitions. U.S. negotiators say they’re progressing on finalizing agreements with 13 other countries on parts of the Indo-Pacific Economic Framework. The operative word is “framework” as that label allows Biden to bypass Congress in reaching agreements in IPEF (pronounced EYE-pef).
“It’s a framework because the administration wanted to have something it could do by executive agreement,” said Robert Holleyman, a former deputy U.S. trade representative.
Many U.S. voters have negative opinions about trade deals that they see as having caused industrial job loss, a prevailing sentiment in the 2016 presidential election that carries over to the upcoming 2024 race. IPEF can partially fill that gap by sidestepping some of the domestic politics while also addressing issues such as supply chains and climate change that have historically been outside trade deals. Here’s a breakdown of the framework and the progress being announced at the Asia-Pacific Economic Cooperation leaders’ meeting.
WHAT IS IPEF?
Biden formally announced IPEF during a May 2022 trip to Tokyo. It has four major pillars: supply chains, climate, anti-corruption and trade.
“We’re writing the new rules for the 21st century economy,” Biden said when the initiative was unveiled. But unlike a traditional trade deal, the framework is not about expanding market access or laying out penalties for unfair practices.
The trade pillar is being overseen by U.S. Trade Representative Katherine Tai, while the other three are under Commerce Secretary Gina Raimondo. The U.S. and its partners are expected to announce agreements on supply chains, climate and anti-corruption, but negotiators are still working through parts of the trade pillar, according to people who are tracking the talks.
WHICH COUNTRIES ARE IN IPEF
Besides the U.S., there are 13 members that represent 40% of global gross domestic product. The other members are Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam, according to the U.S. government.
WHAT IS IN THE AGREEMENTS
Matthew Goodman, director of the Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations, said before the leaders’ meeting that the White House has been “signaling” the terms of the various agreements. Each pillar is negotiated separately.
On trade, there will be some language on agriculture and expanding trade relationships. But the major issues of labor, environmental standards and rules for digital companies are still being negotiated.
Sen. Sherrod Brown, D-Ohio, objected to the trade pillar in part because of a lack of worker protections, prompting the Biden administration to not move forward with an agreement on the issue. Brown is up for reelection next year in an increasingly Republican state that identifies with its industrial heritage.
“Instead of negotiating trade deals behind closed doors, we should be working to strengthen enforcement so that American workers can compete on a level playing field,” Brown said.
The U.S. government has suggested there will be an agreement on the other three pillars, but those would also be in the early stages.
WHY TRADE DEALS ARE UNPOPULAR
It’s simple: Voters say past trade deals caused the loss of factory jobs that hollowed out their hometowns and the Biden administration agrees.
The 2016 presidential election was a landmark event on rejecting trade pacts. Both party’s candidates, Republican Donald Trump and Democrat Hillary Clinton, walked away from the Trans-Pacific Partnership. Then President Trump revised the existing trade deal with Canada and Mexico, while raising taxes on a range of imports and starting a trade skirmish with China.
Trade deals offered the prospect of cheaper goods and geopolitical stability, a prospect that was also somewhat undermined as the coronavirus pandemic exposed fragile supply chains that were overly dependent on China. Biden has sought to find alternatives to Chinese factories while maintaining the tariffs that Trump imposed on Chinese goods.
In a June speech, Tai criticized past trade deals.
“If we look at what those agreements did, we see the ways in which they contributed to the very problems we are now trying to address,” said Tai, emphasizing that “our new approach to trade recognizes people as more than just consumers, but also producers —the workers, wage earners, providers, and community members that comprise a vibrant middle class.”
Trade deals also take years to negotiate and even longer to finalize across presidential administrations. The last new trade deal was signed with South Korea in 2007 and went into force in 2012. By comparison, IPEF is moving a speedy clip as agreements are being announced after less than two years.
veryGood! (813)
Related
- Bill Belichick's salary at North Carolina: School releases football coach's contract details
- New York golfer charged with animal cruelty after goose killed with golf club
- Larsa Pippen and Marcus Jordan Set the Record Straight on Their Relationship Status
- Oklahoma schools head takes aim at Tulsa district. Critics say his motives are politically driven
- Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
- MacKenzie Scott has donated an estimated $146 million to 24 nonprofits so far this year
- Vermont prosecutor facing impeachment investigation for harassment allegations says he will resign
- Cowboys defensive end Sam Williams arrested on substance, weapon charges
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- What’s going on with Scooter Braun’s artist roster? Here’s what we know and what’s still speculation
Ranking
- Jamie Foxx reps say actor was hit in face by a glass at birthday dinner, needed stitches
- Zendaya Slams Hurtful Rumors About Law Roach Fashion Show Drama
- American Airlines is suing Skiplagged, which helps customers book cheaper flights using a loophole
- Man convicted of killing Kristin Smart is attacked in prison and hospitalized in serious condition
- Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
- How much of Maui has burned in the wildfires? Aerial images show fire damage as containment efforts continue
- What’s going on with Scooter Braun’s artist roster? Here’s what we know and what’s still speculation
- Mother of Army private in North Korea tells AP that her son ‘has so many reasons to come home’
Recommendation
Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
Zendaya and Jason Derulo’s Hairstylist Fires Nanny for Secretly Filming Client
Hunters kill elusive Ninja bear that attacked at least 66 cows in Japan
Ecuador votes to stop oil drilling in the Amazon reserve in historic referendum
Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
North Dakota Gov. Burgum may miss GOP presidential debate after hurting himself playing basketball
Sofia Coppola Reacts to 16-Year-Old Daughter Romy’s Viral TikTok About Being Grounded
Body of skier believed to have died 22 years ago found on glacier in the Austrian Alps