The Obama administration’s efforts to open up trade between the US and Asia may be closer than ever to being achieved, according to the director of a global trade think tank.
When President Barack Obama met in April with Japanese Prime Minister Shinzo Abe, high on the agenda of topics to be discussed was the Trans-Pacific Partnership (TPP), a free trade agreement between the US and Japan and 10 other Asian nations. While negotiations continue, if an agreement is reached terms of trade between the US and the Asian nations could be similar to those outlined in the North American Free Trade Agreement, the pact the US entered into with Canada and Mexico in 1994.
Bruce Stokes, director of global economic attitudes at the Pew Research Center in Washington, D.C., said the TPP and another free trade agreement Obama is seeking with the European Union appear to have growing public support.
“Contrary to the conventional wisdom that many Americans are instinctive protectionists, roughly seven in ten (71%) believe that growing trade between the United States and other nations is a good thing, according to a recent Pew Research Center survey,” Stokes wrote in Foreign Policy. “Only 23% of Americans voice the view that trade is bad for the country. Such findings comport with past Pew Research that show public backs trade in principle.”
Counterbalances Growing Chinese Influence
One of Obama’s biggest goals in pushing the TPP is to counterbalance China’s growing influence and competitive advantages. China would not be a signatory on the agreement. The other goal, of course, would be to spur job creation and economic growth in the wake of the Great Recession, the effects of which the US is only just beginning to shake off.
The pact between the US and Asian nations is a legacy issue for Obama, whose second term expires in 2016. If an agreement can’t be reached by then, it’s not certain that it’s an issue that would be backed by a new administration, especially if Republicans win the White House.
Popular Support Growing
While 74% of the people participating in the Pew survey said increased trade with Japan is needed, only 51 percent said they would like to see trade with China increased.
With the wind blowing in Japan’s direction, it could mean that Obama may get his trade agreement after all, according to Stokes.
“This broad American support for international commerce, for increased trade with Japan, and for the TPP suggests the political climate in Washington for Congressional consideration of an eventual TPP deal may not be as negative as it might appear given the current negotiating deadlock over details of the trade agreement,” he wrote.
UPS Betting on Chinese Growth
In the meantime, UPS recently opened a new 6,500 square meter contract logistics distribution facility in Beijing, China. The DC, which is located just 19 kilometers from the Chinese capital’s primary airport, will allow the carrier to provide four-hour delivery within the city and next business day orders for other major Chinese cities.
The move comes as the size of the Chinese middle class’s income has tripled during the last decade, according to CNN Money. Plus the size of China’s middle class is expected to double — from 300 million to 600 million — between now and 2020.