SAN FRANCISCO: US President Joe Biden on Thursday said he would keep working to advance a Pacific trade pact, even as his vision for a regional deal to counter China’s influence stumbled over his bid to strengthen workers’ rights.
“Our work is not yet done,” Biden told corporate CEOs in San Francisco where he attended a summit of the 21-member Asia Pacific Economic Cooperation (APEC) forum.
“We will continue working to better facilitate high-standard trade that advances workers’ rights through strong enforcement of labor standards.”
Biden was also to take part on Thursday in an event for the Indo-Pacific Economic Framework (IPEF), a 14-nation group his administration established. Hopes for an IPEF trade deal were dashed this week.
Members could not agree on improving labor and environmental standards or compliance, people briefed on the talks said. Asked how long an IPEF trade agreement could take to conclude, an administration official said most negotiations take years but the White House intended to work on an “accelerated timeline.”
The White House started the IPEF to bolster economic engagement with Asia after former President Donald Trump quit a regional trade pact in 2017. Biden, a Democrat, could face Republican Trump again in next year’s presidential election, a face-off that could impact US support of multi-lateral groups like APEC or the IMF and trade policy.
US investment in Asia
Before the APEC summit, Biden on Thursday touted investments by US companies in the region including Amazon.com, Delta Air Lines, PepsiCo, Apple and Boeing.
He argued that continued US economic growth would buoy the entire world, an assessment challenged by the sluggish global economy.
The International Monetary Fund last month cut its growth forecasts for China and said overall global growth remained low and uneven despite what it called the “remarkable strength” of the US economy.
It projects 3.0% real global GDP growth for 2023. Biden said 60% of US exports went to APEC countries, and American businesses were the largest source foreign direct investment in those economies, committing at least $40 billion in 2023.
Dining with US firms at APEC, Xi says China is ready to be a partner
US Commerce Secretary Gina Raimondo said earlier on Thursday IPEF countries had agreed on several “pillars” of the trade initiative, covering cooperation on clean energy and anti-corruption measures. Ministers also formally signed a previously agreed text of a third pillar, covering supply chain resiliency.
The US-backed initiative is not the only game in town.
Trade ministers from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries on Wednesday welcomed more members to the bloc if they can meet its standards. An earlier version of that trade bloc was abandoned by Trump, and under Biden, free-trade deals have been placed on the back burner amid pressure from labor groups.
APEC members have been closely watching developments between the US and China, the world’s two largest economies and strategic rivals, concerned that ever more intense competition could upset global trade and security.
Biden, who held a high-stakes summit with Chinese President Xi Jinping on Wednesday aimed at steadying tense relations, said a stable relationship between the US and China was good for the world.
He said he told Xi that he regarded the United States as “a Pacific nation” that will remain engaged in the region. Biden said the United States was not de-coupling its economy from China, but “de-risking and diversifying.”
“A stable relationship between the world’s two largest economies is not merely good for those two economies but for the world,” Biden said to applause. “It’s good for everyone.”
Comments