Gulf News

It’s in US interest to approve trade deal

The TPP has been designed precisely to include free or at least freer countries than China — and to encourage greater freedom in others, like Vietnam

- By Noah Feldman

House Democrats who’ve been interferin­g with United States President Barack Obama’s ability to negotiate the TransPacif­ic Partnershi­p are missing something very important: The trade deal isn’t primarily significan­t because of the economy. It matters because it’s part of the broader American geostrateg­ic goal of containing China — which pointedly hasn’t been invited to join the TPP. In the new cool war, China’s rising economic influence is giving it greater geopolitic­al power in Asia. The TPP is, above all, an effort to push back on China’s powerful trade relationsh­ips to reduce its political clout. By weakening Obama’s ability to pursue it, congressio­nal Democrats are unintentio­nally weakening the US side in the cool war.

It’s easy to miss the geopolitic­al importance of the TPP, because in the cool war, economics and politics sometimes appear to be operating in unrelated spheres. Consider that the US-dominated security regime in Asia since the Second World War has depended on a “hub and spokes” arrangemen­t with America at the centre and allies such as Australia, Japan, South Korea and Taiwan all connected to the US and only very loosely to one another.

All four of those allies rely on the American relationsh­ip to protect them from China. Yet in the decades of China’s rise, each of those countries has developed trade relationsh­ips with China that first equalled and then surpassed their trade relationsh­ips with the US

During the Cold War, it would’ve been almost unimaginab­le for countries belonging to the Eastern bloc or the western allies to have closer economic ties to the other side than to the side on which they were dependent for their security. Trade between communist and capitalist worlds was highly constraine­d and limited. In the zero-sum logic of the Cold War, it made little sense for either side to strengthen the enemy by trading with that enemy’s allies.

Largest export market

The rules of the cool war are completely different — which is why it’s cool, not cold. It’s not just that US security allies trade abundantly with China. The US does, too: It’s still the largest export market for Chinese goods. And the government of China is still the single largest foreign holder of US Treasury bonds.

Given that the defining feature of the cool war is that it’s possible to trade extensivel­y with your geostrateg­ic opponents, you can see why the connection between the TPP and the cool war might be easy to miss.

But in

fact, the TPP was conceived as a crucial tool in the next stage of the cool war. China has been expanding its security position within Asia, growing its military budget at more than 10 per cent a year and staking claims to islands both real and imaginary or newly constructe­d.

In all this, China is using its close economic relationsh­ip with its neighbours as leverage to build its geopolitic­al position. Its ultimate goal is to displace the US as the regional hegemon. President Xi Jinping’s slogan of the “Chinese dream” requires nothing less.

The overarchin­g goal for the US in the cool war is and must continue to be a form of containmen­t. For reasons of prudence and caution, the US never says officially that it aims to contain China. But that’s the whole point of the US military presence in the region. Yes, it’s protecting its allies from being dominated by China — but it’s doing so by functionin­g as the dominant regional military actor.

China’s economic growth is a fait accompli. In general, it’s a great thing, bringing hundreds of millions of people out of poverty. But the US needs a range of tools beyond the military to contain China. A trade deal that excludes China is a good way to do it.

And progressiv­es in principle should like this approach. After all, one reason China can’t join the TPP is that it isn’t about to allow labour unions or other progressiv­e institutio­ns that the TPP requires of its members. Indeed, the TPP has been designed precisely to include free or at least freer countries than China — and to encourage greater freedom in others, like Vietnam.

The TPP uses trade in the service of geopolitic­s. It will make the US stronger in the cool war. And that’s an issue progressiv­e Democrats should care about.

-Washington Post

gulfnews.com

 ?? Niño Jose Heredia/©Gulf News ??
Niño Jose Heredia/©Gulf News

Newspapers in English

Newspapers from United Arab Emirates