Biden unveils U.S.-Asia trade initiative that falls far short of a free trade deal
President Joe Biden on Monday unveiled an initiative that he said would bind the U.S. and Asian economies more closely but that falls short of a free trade agreement and remains vague on details.
The newly named group, the Indo-Pacific Economic Framework for Prosperity, is intended to increase cooperation on trade, energy, the supply chain and anti-corruption efforts and counter the growing influence of China. Leaders of the framework have yet to flesh out how the goals would be met in an open-ended strategy used to lure countries to join and stay in the bloc.
At a launch event in Tokyo intended to convey unity, Biden, Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi were joined by representatives from other member countries who appeared virtually. In a possible sign that the new framework was not drawing enthusiasm, several of the countries did not send their top leader to the announcement.
“We’re writing the new rules for the 21st century economy that are going to help all of our countries’ economies grow faster and fairer,” Biden said.
Leaders throughout the region have been pressing for a traditional free trade deal that would open American and Asian markets to each other and help Pacific countries compete with China’s economic dominance. But the Pacific trade pact negotiated by the Obama administration a decade ago is politically toxic in the United States, excoriated by the labor movement on the left and abandoned by former President Donald Trump after he campaigned against it in 2016.
Kishida praised the new framework as a positive sign that the U.S. is engaging in the region but made it clear that he believes it does not go far enough.
“Our position remains unchanged,” Kishida said at a news conference with Biden before the launch event. “We think it’s desirable for the United States to return” to the Obamaera
trade deal known as the Trans-Pacific Partnership.
Singaporean Prime Minister Lee Hsien Loong expressed a similar sentiment, saying the new initiative could be “a valuable platform for the United States to engage in economic diplomacy in the region” while adding that he is hoping for “more ambitious” collaboration in the future.
Muhammad Lutfi, Indonesia’s trade minister, cautioned that the group should not merely be used to contain other countries, a likely reference to China.
There are no binding requirements for the countries in the group at this point and no expectation that any aspect of the still-unwritten plan will need congressional approval in the United States. A two-page fact sheet included some aspirational language but no details.
Still, the White House is promoting it as the main economic accomplishment of Biden’s trip to Seoul and Tokyo. Administration officials promise, for example, that the group of countries will eventually be able to prevent supply chain problems by communicating better.