Obama's Asia trade deal still alive, top economic adviser says
| Washington
President Obama鈥檚 top economic adviser says that the Trans-Pacific Partnership (TPP) trade deal is not dead, despite opposition from the leading presidential candidates from both major parties.
When asked whether the trade agreement was doomed by criticism from both Donald Trump and Hillary Clinton, Jason Furman, chairman of the Council of Economic Advisers, replied, 鈥淚 do not believe that at all.鈥� He spoke April 22 at a Monitor-hosted breakfast for reporters.
The trade agreement among 12 Pacific Rim nations still requires congressional approval. The pact is a key element of Mr. Obama鈥檚 effort to increase US engagement with the Pacific region and help offset China鈥檚 rising influence as a major trading partner with nations in the area.
Mrs. Clinton, the Democratic front-runner, called TPP the 鈥済old standard鈥� of trade deals when she was serving as secretary of State. But as a candidate, she has opposed the agreement saying, 鈥淚 don鈥檛 believe it鈥檚 going to meet the high bar I have set鈥� in terms of creating jobs and boosting wages in the US while advancing the nation鈥檚 security.
Mr. Trump, the leading GOP candidate, calls TPP 鈥渁 horrible deal,鈥� arguing, 鈥淚t鈥檚 a deal that was designed for China to come in, as they always do, through the back door and totally take advantage of everyone.鈥�
Not so, Mr. Furman says, contending that every year the adoption of TPP is delayed costs the US nearly $100 billion in 鈥渇oregone benefits that we would get from the agreement.鈥� He added that, 鈥淭he support for it is growing 鈥� every week new groups come out for it.鈥澛� 聽
The Obama administration is likely to try to get the measure through Congress after the November elections in a lame duck session. The pact 鈥渃ontinues to be something that we know a majority of the members of Congress are in principle open to doing,鈥� Furman said.
When questioned about the US economic outlook, Furman was upbeat.聽鈥淥ur growth continues to be considered by people around the world as one of the bright spots in the global economy,鈥� he said.聽
One sign of the economy鈥檚 health, Furman said, is that the number of people who filed for unemployment claims last week was at its lowest level since November 1973. 聽聽
In Furman鈥檚 view, the biggest concern for the US economy 鈥渋s the impact of the rest of the world.鈥� US exports have slowed as a result of economic weakness elsewhere. 鈥淪lower growth in the rest of the world is taking about three quarters of a point off our growth rate right now. So this isn鈥檛 enough to have a massive change on the US economy but it is a persistent drag on the economy,鈥� he said.
