United Kingdom Joins CPTPP, Exposing America's Trade Failures

The United Kingdom's recent decision to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the first European country marks a significant event in global trade. This move highlights America's growing trade failures, particularly in the Indo-Pacific region. While the CPTPP offers economic benefits and opportunities for Britain, the United States' absence from the agreement underscores a missed opportunity to shape global trade rules and expand its economic influence.

The CPTPP and America's Missed Opportunity:

The CPTPP, the successor to the Trans-Pacific Partnership (TPP) that the United States withdrew from in 2017, includes 11 nations including Canada, Mexico, Japan, Australia, Vietnam, Singapore, and Malaysia. Notably, it excludes China, providing an ideal opportunity for the United States to lead and shape trade rules in the world's fastest-growing region. However, the U.S. did not seize this opportunity, and now other countries are looking to participate.

Protectionism Persists in the U.S.:

Despite criticizing former President Donald Trump's trade policy, President Joe Biden has maintained most of the Trump-era tariffs and resisted entering into new trade deals. This protectionist stance extends to the United Kingdom, which shares economic compatibility with the U.S. and has expressed interest in a bilateral trade agreement following Brexit. The U.S. has failed to capitalize on these potential alliances.

Failures of the Indo-Pacific Economic Framework (IPEF):

The Biden Administration launched the Indo-Pacific Economic Framework (IPEF) last year, aiming to promote economic engagement in the region. However, the IPEF has been exposed as lacking substance. The U.S. has been reluctant to negotiate tariff reductions, market access measures, or new standards for digital trade. This lack of progress has disappointed business and agriculture groups, as American companies face barriers in foreign markets and the need for alternative supply chains to China.

The Growing Costs of Trade Abdication:

The U.S. is now on the sidelines as the rest of the world negotiates new trade deals. The European Union, for instance, is engaging with countries like Indonesia and India to strengthen economic ties. Meanwhile, U.S. companies are increasingly seeking supply-chain alternatives to China but lack support from the U.S. government. The consequences of the Biden administration's trade abdication are mounting, with American businesses and workers being left behind in the Indo-Pacific region.