October 21, 2011
STIMULUS WE CAN BELIEVE IN:
More free trade can create more jobs (Terry McGraw, October 20, 2011, Politico)Washington is now negotiating with eight countries -- including Australia, Chile, New Zealand, Brunei, Peru, Singapore, Malaysia and Vietnam -- under the rubric of the Trans-Pacific Partnership. The total trade of all of these countries is more than $170 billion, collectively making this group the fourth-largest U.S. trading partner.
Reaching an agreement with all eight nations is critical if the U.S. is to keep up with the growing number of preferential trade agreements in the Asia-Pacific region -- to which America is not a signatory. A successful Pacific partnership may also become the foundation for an even broader Free Trade Area of the Asia-Pacific, which could include major U.S. trading partners like Japan, whose government is weighing membership in TPP.
Other countries, like Indonesia, could be added, as this agreement expands and becomes a significant platform for free trade.
Another deal now being negotiated is a U.S.-India bilateral investment treaty. Though short of a full-fledged free-trade agreement, it's important for protecting U.S. interests. India's fast-growing economy means high-value exports from U.S.-based companies -- including parts for nuclear power plants, aircraft, pharmaceuticals, electrical machinery and other high-end products. Even during the Great Recession of 2007 to 2008, U.S. merchandise exports to India grew at a brisk 18 percent.
The U.S. is also speaking with other countries, including Vietnam and China, about inking bilateral investment agreements likely to advance U.S. interests. In addition, Russia is negotiating to join the World Trade Organization on commercially meaningful terms.
These initiatives deserve our backing. But there's the larger question of what's next. The answer is more free-trade initiatives need to move forward.
Posted by oj at October 21, 2011 6:49 AM
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