The elect-president Joe Biden has promised to work with democracies on the Rules of the Road on Trade, which is rewriting the rules of international trade. He has signaled a shift from Donald Trump’s policies, who has pulled out of multilateral pacts and raised up tensions with China. Bidens made these comments days after 15 Asia Pacific countries including China signed a historic trade pact. There is more information in this article for you to read about this new rule.
Rules of the Road on Trade
The Regional Comprehensive Economic Partnership unveils close to a third of the world’s economy and population.
- Fifteen countries sign the world’s biggest trade deal.
- Explaining the world’s biggest trade deal.
- What has Donald Trump actually achieved on trade?
According to president-elect Joe Biden, “we make up about 25% of the world’s trading capacity, of the economy of the world. We need to be aligned with the other democracies – another 25% or more – so that we can set the rules of the road”. The alternative has Biden has said, was to have “China and others dictate outcomes because they are the only game in town”.
Mr. Biden wouldn’t be drawn on whether he would consider signing the Regional Comprehensive Economic Partnership (RCEP). Or the rival Trans-Pacific Partnership (TPP). In a clear jab at Mr. Trump, he indicated that his administration’s foreign and trade policies would strike a special tone than those of his predecessor.
“I’m not trying to find punitive trade. the thought that we are poking our finger within the eyes of our friends and embracing autocrats makes no sense to me,” Mr. Biden added.
Mr. Trump withdrew from the TPP, a trade pact that was originally backed by the Obama administration. He also introduced tariffs on China and imposed restrictions on a variety of Chinese technology companies on national security grounds.
Although he wouldn’t say what deals the US might consider joining, Mr. Biden outlined a number of the conditions for US involvement in international trade agreements.
“One, we’re visiting invest in American workers and make them more competitive. Number two, we’re visiting confirm labor is at the table. And environmentalists are at the table in trade deals we make,” he said.
The RCEP is formed of 10 Southeast Asian countries, moreover as an Asian country, China, Japan, Australia, and New Zealand.
Conclusion – Rules of the Road on Trade
Although both deals include many of the identical countries, China was never a component of the TPP and also the US was never part of RCEP. After the US withdrew in 2017, the remaining members of the TPP signed onto a successor agreement which made specific provisions to permit the US to re-join.