Biden launches Indo-Pacific trade deal, warns of inflation

TOKYO (AP) – President Joe Biden on Monday launched a new trade agreement with 12 Indo-Pacific nations, aimed at strengthening their economies and warning Americans worried about high inflation. The president said he did not believe the recession in the United States was inevitable

Speaking at a news conference after talks with Japanese Prime Minister Fumio Kishida, Biden acknowledged that the US economy had “problems” but said they were “less effective than the rest of the world”.

He added: “It will be a drag. This will take some time. ” Responding to a question, he rejected the notion that a recession in the United States was inevitable.

His comments came shortly before Biden began building the Indo-Pacific economy. His administration says the trade agreement is designed to mark the United States’ commitment to the competing economy and to address the need for trade stability in the wake of the epidemic and the disruption caused by Russia’s invasion of Ukraine..

Countries that have joined the United States in this agreement are: Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam. Together with the United States, they represent 40% of world GDP.

The countries said in a joint statement that the agreement would help “collectively prepare our economies for the future” in the wake of the epidemic. And the war in Ukraine.

Biden and Kishida joined Indian Prime Minister Narendra Modi at the launch event, with representatives from other countries appearing via video. Modi was in Tokyo on Tuesday for a meeting of the Quad, a four-nation security body comprising the United States, Japan and Australia.

The White House says the framework will help the US and Asian economies work more closely on issues including supply chains, digital trade, clean energy, labor protection and anti-corruption efforts. More details need to be negotiated between member states, and it is difficult for management to say how this agreement will fulfill its promise to help American workers and businesses.

Youtube video thumbnail

Critics say there are gaps in the structure. It will not offer concessions to prospective partners by reducing fees or giving signatories greater access to US markets. Those limitations will not make the US structure an attractive alternative to the Trans-Pacific Partnership, Advanced without the United States after the departure of former President Donald Trump. China, the largest trading partner for many in the region, is also seeking to join the TPP.

“A lot of allies looked at the list and said, ‘This is a good problem list. I’m glad to be involved,’ ‘said Matthew Goodman, former director of the National Security Council at the National Security Council during the administration of President Barack Obama.” ? “He said.

Kishida Biden was given a formal government reception at the Agasaka Palace, with a white-clad military honorary guard and band in front of the plaza. Biden reconsidered the assembled troops and laid his hands on his heart as he bowed slightly past the American flag and Japanese standards.

The Japanese prime minister took office last fall and is looking to strengthen ties with the United States and build a personal relationship with Biden. The two leaders ended their day with dinner at Kochuan, an iconic Tokyo restaurant in the grounds of a Japanese garden.

Kishida told their gathering that she was “absolutely delighted” to welcome Pita to Tokyo on her president’s first Asian trip. Along with Biden, he brought a tough stance against Russia against the occupation of Ukraine, saying that the occupation “undermines the foundations of the global order.”

In the midst of a five-day trip to South Korea and Japan, Biden called the US-Japan alliance a “cornerstone of peace and prosperity in the Indo-Pacific region” and thanked Japan for its “strong leadership”. To Russia.

Kishida welcomed the new Biden trade deal, but said he hoped the president would reconsider the US position and return it to the Trans-Pacific agreement, which Trump withdrew.

“We think it’s desirable for the United States to return to the TPP,” he said.

The new deal comes at a time when management believes it is on the brink of rivalry with Beijing. Bloomberg Economics released a report last week stating that US GDP growth will be 2.8% by 2022, compared to 2% in China, which is trying to control the corona virus through tight locks in dealing with property breakdowns. The recession has undermined speculation that China will automatically transform the United States into the world’s leading economy.

“The fact that the United States is growing faster than China this year, for the first time since 1976, is a very significant example of how countries in the region should look at the question of trends and trajectories,” the White House National Security said. Consultant Jack Sullivan.

The two leaders met with the families of Japanese citizens abducted by North Korea decades ago. The White House said Biden “expressed deep condolences for their suffering and called on North Korea to correct this historic mistake and provide a full account of the 12 missing Japanese nationals.”

The launch of the Indo-Pacific economic structure, also known as the IPEF, was announced by the White House as one of the great moments of Biden’s trip to Asia and his ongoing effort to improve relations with Pacific allies. Through all of this, executives are closely monitoring China’s growing economic and military strength in the region.

The United States announced in September a new alliance called AUKUS with Australia and the United Kingdom aimed at deepening security, diplomatic and security cooperation in the Asia-Pacific region.

The US President has focused on the Quad, an informal coalition that killed 230,000 people during the 2004 Indian Ocean tsunami. Biden and fellow leaders of the coalition are due to meet in Tokyo on Tuesday for the second time in a year.

Earlier this month, Biden convened a summit of delegates from the Association of Southeast Asian Nations in Washington.

Taiwan – sought to be a member of the IPEF framework – was not among the governments included. Beijing would have been annoyed if China had participated in the sovereign island of Taiwan, which it claims as its own.

Sullivan said the United States wants to deepen its economic partnership with Taiwan, including high-tech issues and semiconductor supplies.

Biden also issued a stern warning to China over the Taiwan issue, Said the United States would retaliate militarily if China invaded the autonomous island. “This is a commitment we have made,” Biden said.

The United States recognizes Beijing as the sole government of China and has no diplomatic relations with Taiwan. However, it maintains unofficial contacts with Taiwan, providing the island with military equipment for the island’s security, including the practical embassy in the capital, Taipei.

Biden’s comments received a sharp response from China, which said Taiwan was a rogue province.

A White House official said Biden’s comments did not reflect a change in policy.

___

Associated Press writers Zeke Miller and Darlene Superville in Washington contributed to the report.

Leave a Reply

Your email address will not be published.