Asia Society Policy Institute President Discusses the Future of U.S. Trade in Asia
HOUSTON, May 25, 2017 — Asia Society Policy Institute Vice President Wendy Cutler discussed the future of U.S. trade in Asia under Donald Trump, how the U.S. can continue meaningful economic engagement with its Asia-Pacific partners in light of withdrawing from the Trans-Pacific Partnership (TPP), and whether Asian economies may go forward with TPP without the United States — or instead gravitate toward the Regional Comprehensive Economic Partnership (RCEP). Alan R. Crain moderated the discussion. (1 hr., 8 min.)
On May 25, Asia Society Texas Center hosted Vice President of the Asia Society Policy Institute and former Acting Deputy United States Trade Representative Wendy Cutler for the program Farewell Free Trade? The Trump Administration’s Approach to Asia Trade Policy. Cutler, who joined the Asia Society global network last year, served under nine different U.S. Trade Representatives in her 28 years with the country’s major trade agency. The evening discussion centered around prospects for the Transpacific Partnership (TPP), the benefits of global trade, and the way forward for Asia-U.S. trade in the early stages of the Trump administration. Legal, commercial, and political adviser Alan Crain served as moderator. Guests came from among Houston’s business leaders, the consular corps, trade representatives from Asian governments, and community members interested in exchange between Asia and the U.S. Recognized guests included The Honorable Tetsuro Amano, consul general of Japan in Houston, Dr. Lai Thai Binh, acting consul general of Vietnam in Houston and diplomatic staff from the consulates general of Indonesia, South Korea, and Vietnam.
Cutler began the program in ardent support of global trade, pointing to that in Asia, trade has “brought millions out of poverty, provided high-paying jobs and peace and stability.” She countered that blaming trade for economic hardships is unfair and that job losses in the manufacturing sector are more due to technological developments and increased automation than to impacts of trade agreements. She also elaborated on the Trans-Pacific Partnership (TPP), a proposed trade agreement between 12 countries in Asia, Latin America, and North America. Although now only with 11 signatories after the Trump administration’s withdrawal in early 2017, Cutler lauded the goals of TPP, which would address the growth of digital and e-commerce, state-owned enterprises, labor, and the environment. She also expressed support for the work of the 11 remaining countries to bring the pact into effect without the United States.
Given TPP’s status sans the United States, and President Trump’s preference for bilateral negotiations over regional and multilateral, Cutler sees that there is a tremendous opportunity for China to fill the regional vacuum and be the champion for trade liberalization and globalization. She noted President Xi Jinping’s pro-trade discourse at the World Economic Forum in February and a massive infrastructure and investment project titled the One Belt One Road Initiative, which could reach over half of the world’s population. A major point of Cutler’s talk was to share the findings of a recent ASPI report, Charting A Course for Trade and Economic Integration in the Asia-Pacific. The four recommendations made by a commission of Asia-U.S. trade experts were 1) that policy makers, in light of the U.S. withdrawal, advance the TPP’s high standards in the Asia-Pacific region, 2) member countries should work hard to raise the Regional Comprehensive Economic Partnership (RCEP, a proposed Asian trade network which does not include Latin and North American countries) standards, 3) countries should pursue complimentary opportunities for liberalization in the Asia-Pacific region, and 4) policy makers must rebuild support for trade amid growing skepticism about globalization.
In closing, Cutler also reserved time to discuss NAFTA’s place in an uncertain trade picture. She shared that Canada and Mexico are both looking to diversify their respective trade portfolios into Asia and Latin America in an effort to lessen their dependence on the U.S. market. For a continued dialogue on trade, please come to Asia Society Texas Center on June 14 for A New Chapter in U.S.-Korea Relations: Economic Partnerships and Regional Security.