(MENAFN) This week, President Joe Biden is focusing on strengthening economic connections with Asia during a regional summit in San Francisco, albeit without signing any traditional trade deals. This strategic move sheds light on the current state of U.S. politics, the evolving global economic landscape, and the ambitions of the Biden administration. While no comprehensive trade deals are on the table, U.S. negotiators are actively working on finalizing agreements with 13 other countries within the Indo-Pacific Economic Framework (IPEF).
The use of the term "framework" is significant, allowing Biden to bypass Congress in reaching agreements under IPEF. Robert Holleyman, a former deputy U.S. trade representative, notes that the administration opted for a framework to enable executive agreements, steering clear of potential political challenges associated with comprehensive trade deals. This approach acknowledges the prevailing negative opinions among U.S. voters regarding trade deals, often linked to concerns about industrial job losses.
IPEF encompasses four major pillars: supply chains, climate, anti-corruption, and trade. Introduced by Biden during a trip to Tokyo in May 2022, the framework is positioned as an initiative to shape the rules for the 21st-century economy. Unlike traditional trade deals, IPEF does not primarily focus on expanding market access or outlining penalties for unfair practices.
While the trade pillar is under the oversight of U.S. Trade Representative Katherine Tai, the remaining three pillars—supply chains, climate, and anti-corruption—are under the purview of Commerce Secretary Gina Raimondo. The ongoing negotiations are expected to yield agreements on supply chains, climate, and anti-corruption, with specific details still being worked out in the trade pillar. This approach allows the Biden administration to navigate domestic politics while addressing critical issues such as supply chains and climate change, which have traditionally fallen outside the scope of conventional trade deals. The progress and outcomes of these discussions will likely influence the trajectory of U.S. economic engagement in the Asia-Pacific region.
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