Froman Makes Last-Ditch Plea for TPP in Final Keynote
Outgoing U.S. Trade Representative Michael Froman on Jan. 10 made a final push for approval of the Trans-Pacific Partnership during his last scheduled keynote in his Obama administration post, saying not ratifying the deal would be the “biggest gift” the U.S. could give China, and that it would run afoul of a “get-tough-on-China” policy, which President-elect Donald Trump has espoused. During a speech at a Washington International Trade Association event, Froman said the administration’s fear that China would fill an Asia-Pacific leadership void left by the U.S.’s non-ratification “is coming true before our eyes,” as China negotiates the 16-party Regional Comprehensive Economic Partnership and continues “excursions” in the South China Sea, according to prepared remarks (here).
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“I can’t imagine why any President would want to abdicate our leadership in the Asia-Pacific, to be responsible for handing the keys of the castle to China, for driving our historic allies and China’s historic rivals into China’s arms,” Froman said. “It would be a strategic miscalculation of enormous proportions.” Froman also called on Europe to be strong and effective as China and other major emerging economies haven’t yet assumed “responsibilities commensurate with their role in the global economy.” Froman said economic anxiety expressed in the U.S. over the last 18 months indicates “real and legitimate” concerns, and pointed to the legislative process of trade agreements as the scapegoat for wage stagnation and yawning income inequality largely caused by technological advancement. “We don’t get to vote on the next generation of technology,” he said. Froman did acknowledged that trade critics are “onto something,” noting that the U.S. “as a government or as a country” doesn’t do “a particularly good job” in helping people and communities adapt to economic changes brought by technology, migration or globalization.