U.S. President Joe Biden Pledges to Keep Working on Pacific Trade Pact Amid Stumbling Blocks
U.S. President Joe Biden addressed corporate CEOs on Thursday during a visit to San Francisco where he attended the Asia Pacific Economic Cooperation (APEC) forum. During his speech, Biden promised to continue working towards advancing a Pacific trade pact despite stumbling blocks related to his bid to strengthen workers’ rights.
The President expressed that although their work is not yet done, they will continue working towards facilitating high-standard trade that advances workers’ rights through strong enforcement of labor standards. However, efforts to secure a Pacific trade deal hit a roadblock as the U.S. and its Indo-Pacific partners were not able to agree on improving labor and environmental standards or compliance during a recent event for the Indo-Pacific Economic Framework (IPEF).
Deputy U.S. Trade Representative Sarah Bianchi acknowledged the need to reevaluate the negotiations, stating that the U.S. and its partners need to “recalibrate” their trade pillar negotiations early next year. Despite the setback, the administration indicated its intentions to work on an “accelerated timeline” for the IPEF trade agreement negotiations.
The White House had established the IPEF to bolster economic engagement with Asia following former President Donald Trump’s decision to withdraw from a regional trade pact in 2017. With next year’s presidential election looming, the outcome could impact U.S. support of multi-lateral groups like APEC, the IMF, and trade policy.
During the APEC summit, Biden also highlighted the need for agreements to accelerate clean energy transitions and combat corruption. Additionally, he announced the launch of an “investment accelerator” aimed at bringing in private capital for investments in clean energy and technology, expressing that government investment alone is not enough.
Biden further emphasized U.S. economic engagement with the Asia-Pacific region, pointing to investments by U.S. companies in the region. However, he faced criticisms regarding the sluggish global economy, as the International Monetary Fund had recently cut its growth forecasts for China and stated that overall global growth remained low and uneven.
Nevertheless, the President continued to underscore the importance of a stable relationship between the U.S. and China, stating that it was beneficial not only for the two economies but for the world at large. He also reassured that the United States was not “de-coupling” its economy from China but rather “de-risking and diversifying.”
As Biden navigates the complex landscape of trade negotiations and economic engagement with Asia, questions linger over the potential impact of the upcoming presidential election and the ongoing rivalry between the U.S. and China. The international community will be closely watching the developments between the two superpowers for potential implications on trade and security globally.
Reporting by Trevor Hunnicutt, David Brunnstrom, Nandita Bose, Ann Saphir, Katharine Jackson, Andrea Shalal, and Doina Chiacu; Editing by Cynthia Osterman and Stephen Coates