The AP Interview: US trade rep. sees opportunity in recovery

BANGKOK — With world economies all suffering from more than two years of the coronavirus pandemic and global supply problems exacerbated by Russia’s invasion of Ukraine, the United States has an “incredible opportunity” to engage with other nations on a common playing field and forge new partnerships and agreements, the top U.S. trade negotiator told The Associated Press on Friday.

U.S. Trade Representative Katherine Tai arrived in Thailand for meetings with Asia-pacific Economic Cooperation group trade ministers, the same day President Joe Biden started an Asia visit in South Korea.

The two are to link up in Japan, where they are to announce plans for a new Indo-pacific Economic Framework, which Tai said above all else would demonstrate “the U.S. abiding commitment as a partner to the countries in this region” as Washington seeks to keep growing Chinese influence in check.

“It is a robust and holistic approach to economics and investing in each other that we’re bringing,” she said.

It will include engagement on supply chain stability, clean energy, decarbonization, taxes and anti-corruption measures, she said.

Even before the announcement, expected Monday, Japan welcomed the initiative, expressing its support Friday and saying it was considering joining.

Tokyo is still smarting at the U.S. decision in 2017 under then-president Donald Trump to pull out of the Trans-pacific Partnership trade agreement, and played a key role in bringing together the other 11 members of that pact, now known as the Comprehensive and Progressive Agreement for Trans-pacific Partnership.

Noriyuki Shikata, Japan’s Cabinet secretary for public affairs, said because the

IPEF is expected to be less focused on market access and tariffs, Tokyo still hopes the U.S. will rejoin the TPP even though Washington has said it will not.

But even though there isn’t the promise of greater access to U.S. markets like in traditional trade agreements, the IPEF will still have the effect of increasing opportunities, Tai said.

“We are not bringing discussions and negotiations around tariff liberalization,” she said. “But in layman’s terms, when we’re talking about access to markets and market opportunities, that absolutely is something that is part of our conversation.”

Tai, who is considered a problem-solving pragmatist on trade policy, has said the focus of U.S. policy has shifted away from globalization for its own sake to one that prioritizes security and the interests of workers as well as consumers.

Before she was appointed USTR, Tai was chief trade counsel for the House Ways and Means Committee, where she handled negotiations over a revamped North American trade deal.

One key objective was to refashion the pact to make it easier for Mexican workers to form independent unions and demand better pay and benefits. That might reduce incentives for U.S. companies to move their manufacturing south of the border to take advantage of cheaper labor.

With all of the current disruptions in the global economy, including the coronavirus pandemic and the war in Ukraine, which has caused a rise in food and fuel prices, she said counterparts she has spoken with in the Asia-pacific Economic Cooperation group currently meeting in Thailand have been enthusiastic about the idea of the new economic framework that might help workers and businesses.

“I don’t think anybody’s economy is stronger because of COVID and there is a pretty pervasive sense of anxiety about how we recover,” she said. “I actually think that this presents with an incredible opportunity.”

She said her counterparts talked about needing “resilience, sustainability and inclusion.”