I was in Vietnam about this time last year. President Obama also happened to be in Hanoi at the same time, working to enhance America’s internationally presence and improve trade relations with twelve Pacific Rim partners. Vietnam and the other countries rejoiced at his arrival after a torturous past of wars and corruption that was crippling the economies of Southeast Asia and the Pacific. Obama helped broker the twelve-nation Trans-Pacific Partnership (TPP). Many trade experts saw TPP as the single most valuable tool America had for shaping the geo-economic future of the region our way and for pressuring China to open its markets.
TPP also included restrictions on foreign state-owned enterprises that dumped subsidized products into our markets, intellectual property protections for rising U.S. technologies – like free access for all cloud computing services. Like any trade deal, TPP would have challenged some U.S. workers but it would have created opportunities for many others, because big economies like Japan and Vietnam were opening their markets. For decades we had allowed Japan to stay way too closed because, because it was an ally in the Cold War, and Vietnam, because it was an enemy. Some 80 percent of the goods from our 11 TPP partners were coming into the U.S. duty free already, while our goods and services were still being hit with 18,000 tariffs in their countries – which TPP eliminated.
We could have even helped the economic reformers in China. They were hoping that the emergence of TPP “would force China to reform its trade practices more along American lines and to open its markets . . . We failed the reformers in China.”
P.S. Happy Fourth of July weekend. Enjoy. Back on Wednesday, July 5th.