It’s Time for the U.S. and Asia to Rethink Trade Adjustment
Op-Ed in The Diplomat
On March 30, the Asia Society Policy Institute (ASPI) released a paper entitled, "Adjusting to Trade: Asia-Pacific Approaches to Assisting Displaced Workers". The following is an excerpt from an op-ed by ASPI Vice President Wendy Cutler presenting key findings from the paper. The op-ed was originally published by The Diplomat.
On March 8, the 11 remaining members of the Trans-Pacific Partnership (TPP) signed the sweeping trade deal, just over a year after the United States’ withdrawal. That same day, in Washington, U.S. President Donald Trump authorized tariffs on imports of steel and aluminum.
Why are the TPP countries moving toward greater integration while the United States heads in the opposite direction?
Trump alone doesn’t explain it. The most recent U.S. presidential election revealed widespread skepticism from both parties about the benefits of trade agreements, as well as a broader backlash against trade and globalization — the perceived causes of job losses, stagnant wages, and income inequalities.
The answer may be that while dissatisfaction with trade has grown in the United States, particularly in former manufacturing hubs like the Rust Belt, the government has fallen short in helping those left behind by globalization.
The United States’ lack of adequate proactive assistance programs for workers has contributed to the public backlash against trade and globalization. Unless countries of the Asia-Pacific take action, they may face a similar backlash in the future.