Trans-Pacific Partnership: Obama pushes US lead role in Asia
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| WASHINGTON
President Obama鈥檚 quest for a vast trade agreement of 12 Pacific Basin countries involving 40 percent of the global economy may sound like it鈥檚 all imports and exports, jobs and commerce. To a certain extent, that鈥檚 what it is.
But more broadly, the Trans-Pacific Partnership Mr. Obama would like to conclude this year is about securing and enhancing America鈥檚 lead role in the community of Pacific nations. It鈥檚 about anchoring Asian countries that are increasingly tied to China鈥檚 economy 鈥 and overshadowed by China鈥檚 assertive behavior in its neighborhood 鈥 to a free-market economy upholding Western standards and values.
And it鈥檚 about advancing the 鈥淎sia pivot,鈥 or 鈥渞ebalancing鈥 of US interests from the Middle East to Asia, that Obama has touted since taking office, but which most regional analysts say has not got very far as old and new Mideast crises have thwarted the shift.
This week鈥檚 congressional compromise on granting Obama special negotiating authority paves the way to swift consideration of new trade pacts 鈥 and that puts the Trans-Pacific Partnership, or TPP, and the Asia pivot, back on the agenda.
鈥淚f TPP passes, that keeps the US in the game in Asia,鈥 says Walter Lohman, director of the Heritage Foundation鈥檚 Asian Studies Center in Washington. 鈥淚t would make us much more of a factor in the day-to-day economic life of the region and for people, especially in Southeast Asia, who are really focused on commerce and trade.鈥澛犅
On Thursday several key congressional leaders from both major parties announced they had reached a deal to allow a vote on granting Obama what is called 鈥渇ast-track鈥 trade promotion authority, or TPA. That authority, which has been granted to almost all postwar presidents, allows the administration to negotiate trade deals that will only face an up-or-down vote from Congress but no drawn-out process of amendments.
The Obama administration inherited the foundation of a TPP from the George W. Bush administration, but its size and scope has grown in recent years. At the same time, however, TPP negotiating partners, including Australia, Malaysia, Japan, and Peru, have balked at making key compromises with the US if Obama did not have TPA.
The prospect of quick TPA approval has senior administration officials 鈥 starting at the top -- talking about TPP and the 鈥淎sia pivot鈥 once again.
On Friday, Obama used a White House press conference with Italian Prime Minister Matteo Renzi to make the case for securing a trade pact with a region increasingly influenced by a booming China.
鈥淭he fastest growing markets, the most populous markets are going to be in Asia,鈥 Obama said. 鈥淚f we do not help to shape the rules so that our businesses and our workers can compete in those markets, then China will set up rules that advantage Chinese workers and Chinese businesses.鈥澛犅
Moreover, Obama suggested that trade deals the US negotiates will adhere to labor and environmental standards and values that aren鈥檛 likely to be priorities for the Chinese.
鈥淲e鈥檙e negotiating the highest-level, highest-standard trade agreement in our history,鈥 Obama said, adding that the TPA compromise, which he said requires that trade deals consider human rights issues, resulted in 鈥渢he most progressive TPA we鈥檝e had going through Congress.鈥
Obama鈥檚 use of the word 鈥減rogressive鈥 was almost certainly by design, since many Democrats were quick to blast both TPA and TPP as attacks on American workers and sure paths to more lost American jobs.
Other administration officials have recently underscored the importance of making economic relations, and specifically a regional trade pact, part of the US 鈥渞ebalancing鈥 to Asia.
In a speech last week before heading off on his first Asia tour as Pentagon chief, Defense Secretary Ashton Carter said the TPP makes 鈥渟trong strategic sense鈥 and is an essential piece of the 鈥渞ebalance鈥 to Asia.
The Obama administration has announced a few defense measures as part of the Asia pivot 鈥 deploying 2,500 Marines to Australia, assigning four combat ships to operate out of Singapore by 2018 鈥 and has upped US participation in regional political forums.
But securing a lead economic role in the region through TPP may be the key to convincing the region the 鈥減ivot鈥 is real.
鈥淭PP is a defining piece of the administration鈥檚 policy and in some ways it鈥檚 the most important part of the pivot,鈥 says Heritage鈥檚 Mr. Lohman. 鈥淥ur partners want to see a strong economic dimension to our commitment to the region.鈥
Lohman notes that Asia includes some of the world鈥檚 most open and dynamic economies, but also some of its most closed and repressive states.
That鈥檚 an argument for advancing a US-led regional trade pact, he adds -- one that would make a trading system based on international norms and US-backed standards a competitive model in Asia.
鈥淭PP shouldn鈥檛 be seen in terms of competition with China on an economic level,鈥 Lohman says.
聽鈥淲here the 鈥榗ompetition鈥 argument makes sense is over trading systems and who鈥檚 going to be setting the rules,鈥 he says. 鈥淭PP is important because it puts the US in the game to set the rules.鈥