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Obamas all in on TPP, but PC key to bring deal itself across congressional finish
line its the mother of all trade fights because its perceived as setting the new
framework for ALL FUTURE TRADE DEALS
Vinik, 15 -- Danny Vinik is a staff writer at The New Republic, New Republic, 4/8/15,
http://www.newrepublic.com/article/121476/trans-pacific-partnership-foundation-all-futuretrade-deals
A theme runs through these four disagreements: They're overrated. The actual effects of the TPP are exaggerated. Labor
unions warn
about mass job losses and the Obama Administration touts the significant labor provisions in the law, but
the academic evidence largely points to small job losses or gains. The left demands a chapter on currency manipulation
while knowing that the 11 other TPP countries will never accept one without significant restrictions on the
Federal Reserve. Even for Washington, a town where every policy
cut through these complex debates. It may take decades before we really understand the
Impact is multiple scenarios for conflict throughout asia and east asia impact D
and thumpers dont apply TPP is necessary AND sufficient condition, accesses every
structural check 11 reasons
-
Pivot
Institutions and Rules that moderate and constrain Territorial disputes and escalation
US regional leadership
Perception and credibility of US regional commitment
Perception and Regional credibility of US-Japan alliance effectiveness
Economy
Trade
Economic interdependence
Peaceful china rise and transition
Rule of law
Outweighs US military shift
Nuclear war
Landay 00 (Jonathan S., National Security and Intelligence Correspondent, Knight
Ridder/Tribune News Service, 3-10, Lexis)
Few if any experts think China and Taiwan, North Korea and South Korea, or India and Pakistan are spoiling to fight.
even a minor miscalculation by any of them could destabilize Asia, jolt the global
economy and even start a nuclear war . India, Pakistan and China all have nuclear weapons, and North
But
Korea may have a few, too. Asia lacks the kinds of organizations, negotiations and diplomatic relationships that helped
keep an uneasy peace for five decades in Cold War Europe. Nowhere else on Earth are the stakes as high and relationships
fragile , said Bates Gill, director of northeast Asian policy studies at the Brookings Institution, a Washington think
tank. We see the convergence of great power interest overlaid with lingering confrontations with no
institutionalized security mechanism in place. There are elements for potential disaster. In
so
an effort to cool the regions tempers, President Clinton, Defense Secretary William S. Cohen and National Security Adviser Samuel R. Berger all
will hopscotch Asias capitals this month. For America, the stakes could hardly be higher. There are 100,000 U.S. troops in Asia
become embroiled if Beijing moved against Taiwan or North Korea attacked South Korea. While Washington has no
defense commitments to either India or Pakistan, a conflict between the two could end the global taboo against using nuclear
weapons and demolish the already shaky international nonproliferation regime. In addition, globalization has made a stable
Asia, with its massive markets, cheap labor, exports and resources, indispensable to the U.S. economy. Numerous
U.S. firms and millions of American jobs depend on trade with Asia that totaled $600 billion last year, according to the
Commerce Department.
seen in a while . Opponents of President Obamas trade agenda were winning, the supporters
were winning. Then opponents reclaimed the advantage, only to see supporters take it right back. As of
late yesterday, however, it appears the White House and its unusual set
of allies are going to get exactly what they want . NBC News reported last night:
A critical aspect of President Barack Obamas economic legacy got a boost on Wednesday when the Senate voted to
approve giving him fast-track authority to negotiate a sweeping 12-nation trade pact without the threat
of Congress adding amendments or filibustering the final deal. The vote was 60-38. The measure now heads to the
presidents desk for signature. The final roll call on the Senate vote is online here. Note, Congress passed Trade Promotion Authority better
known as fast-track without the labor-friendly Trade Adjustment Assistance, but that will soon change. Under the plan hatched by the
president and Republican leaders, TAA will be on its way to the Oval Office by tomorrow. Indeed, it passed the Senate late yesterday on a voice
vote and is expected to clear the House with relative ease. House Democrats originally blocked TAA, which they support, in the hopes of
derailing the larger trade agenda, but now that fast-track has already passed, the Democratic minority no longer has an incentive to oppose the
policy they like. Several
House Dems who oppose the trade agenda acknowledged yesterday that the fight
is likely to change quite a bit very soon as part of the fast-track legislation,
the public will be able to read and scrutinize the deal long before an agreement is formally reached. For
quite a while, critics
have raised concerns about the secrecy surrounding the trade negotiations, but this will
soon fade. The fight will focus more on the TPPs merits, less on its process. All of
which leads us to the last fight of the dispute . The White House now has
to Republican support.
is the first time in the Obama era the White House agenda advanced thanks
PC and congressional relations key TPA vote proves it works on trade, Obama
will use it, its finite and spills over TPP is brutal political fight and passage not
guaranteed
Baker, 6/24 -- Peter, American political writer and newspaper reporter who is the White House correspondent
for The New York Times and a contributing writer for The New York Times Magazine, Prior to joining The New
York Times in 2008, Baker was a reporter for 20 years at The Washington Post, where he also covered the White
House during the presidencies of Bill Clinton and George W. Bush, NYT,
http://www.nytimes.com/2015/06/25/business/obama-bolsters-his-leverage-with-trade-victory-but-at-a-cost.html?
_r=0
WASHINGTON
President Obamas
economic agreement in generations. While the turbulent process was embarrassing for the president and deeply confusing for
foreign negotiating partners, Mr. Obama now has the leverage he sought to force the final
the victory on
Capitol Hill , orchestrated mainly by the same Republican leaders Mr. Obama has battled over the
last six years, came at a cost. The open warfare within his own party
was searing and may be slow to heal . Democratic lawmakers said an
already fraught relationship with the president had soured further , and
some vowed to keep fighting the trade pact, called the TransPacific Partnership, foreshadowing another bruising battle. Mr.
Obama faces the question of how he will move forward with Congress in
the time he has left in office. Given the alliance with Republican leaders on a shared priority, can he capitalize on
the momentum to achieve further bipartisan accords? Or is this a one-time convergence of interests that does not carry over to other major issues
like the budget? Hes had a collaboration across the aisle that gave him maybe the strongest legacy of his presidency, said Carla Hills, who
served as the United States trade representative under the first President George Bush and went on to found a consulting firm advising businesses
on expanding international trade. Now hes got 15 months left. Whats he going to do with it? Perhaps surprisingly, Mr. Obama has found
common ground with Republicans several times in the six months since they took control of the Senate and added to their House majority. He
signed a bipartisan measure imposing new restrictions on national security surveillance, and, after initially threatening a veto, accepted bipartisan
legislation giving Congress a role in evaluating any nuclear deal with Iran. White House officials see room for further consensus with
Republicans on a large public works program of road, bridge and other construction projects, as well as legislation to overhaul the criminal justice
system to address what both parties see as excessive incarceration. While they would not say so out loud, White House officials
saying they were straightforward and professional during the trade debate. And Mr. Obama
perhaps any initiative since Democrats lost the House in 2010. The last six months, working on
this, theyve really shown a willingness for the first time to work
across the aisle , and because of that, this key economic measure has been salvaged, said former
Gov. John Engler of Michigan, a Republican who is president of the Business Roundtable. It would have been catastrophic if it had been
defeated. White House officials argued that Mr. Obamas
Democrats to put the measure over the top . Yet he delivered relatively few Democratic votes and had
to be saved by Republicans after House Democrats blocked his trade package. Democratic opponents of the trade legislation
bristled at what they saw as the presidents belittling their concerns and accusing them of making up arguments.
The legislation sent to Mr. Obama allows him to submit trade deals to Congress for up-or-down votes
without amendments. But that means his Democratic critics will have another
who was a leading critic of the trade legislation, said t he president should listen to his party and
the agreement. If not, he said, Democrats
address concerns about the labor and environmental standards and investor protections in
It is so bad, and we will have so much time to simply explain that to the American people that you
TPP Passage likely, but not guaranteed fast track was necessary, but only a first
step its key to success of Asia pivot
Kehoe, 6/24 John, John Kehoe is the United States correspondent for The Australian Financial Review, , John
reports on the economy, politics, and business, John began his career at the Australian Treasury as a policy analyst,
after studying economics and politics at Monash University in Melbourne.Australian, Financial Review, 6/24/14,
http://www.afr.com/news/economy/trade/obamas-pacific-trade-deal-close-as-congress-reverses-block-20150623ghvyt4
Obamas Pacific trade deal close as Congress reverses block President Barack Obama and the US Congress
cleared a major hurdle for a proposed Pacific Rim free trade and investment agreement, paving the way for the
12 participating countries, including Australia and Japan, to finalise negotiations on a deal. After the President copped an
embarrassing rejection from his own union-beholden Democratic party 11 days earlier, a majority of US Senators supported advancing legislation
that would give Mr Obama the power to set the details of the Trans-Pacific Partnership. The 60-37 vote in the Senate on Tuesday to prevent a
filibuster debate on the so-called trade promotion authority (TPA) bill, sets up a final vote in for senators on Wednesday to grant the President the
fast-track power. The TPA measure is widely expected to attract the 51 votes required, after the House of Representative approved mirroring
legislation last week. The TPA or fast-track power, which prevents Congress from changing the details of the TPP and limits
lawmakers to a simple yes or no vote on the final pact , is vital for other countries to sign the free trade and investment
agreement. Luis Miguel Castilla, the ambassador of Peru to the United States, said the TPP negotiations were stalled until other countries had
assurance the President had secured TPA. "There
negotiating table [between TPP countries], but
forward ," he said at the Atlantic Council in Washington. The TPP is a major proposed multilateral accord,
covering more than 40 per cent of the world's economy and will set sweeping new rules for trade,
investment, intellectual property, labour and the environment. As well as promising big economic benefits
for countries to plug in to the fast growing Asia region, the TPP is considered a vital economic
element
to President Obama's strategic rebalance to Asia to offset the rise of rival China. The 12 TPP
countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Participating countries yet to remove trade barriers, such as agriculture tariffs and quotas in Japan and Canada, have been holding back their best
and final offers until they have confidence that the US Trade Representative can keep its word without meddling from the US Congress. Trade
unions and many Democrats have waged a furious campaign
against the TPP , claiming that a free trade agreement with Mexico and Canada earlier triggered
the shifting of thousands of blue collar jobs to lower cost countries and only benefited big corporations. In the end, President
Obama relied on mainly Republican support, combined with a handful of Democrats, after the House initially rejected TPA legislation this month.
Mr Obama, who was criticised for belatedly lobbying Congress on the benefits of TPP, has said the deal is vital to ensure the US helps set the
trade rules in Asia, instead of China. Trade Minister Andrew Robb, who was in India, has said getting trade ministers together to conclude a
negoitation was dependent on a successful US outcome on TPA. Pro-free trade Republicans hailed Tuesday's breakthrough in the Senate. "This
has been a long and rather twisted path to where we are today but it's a very, very important accomplishment for the country," said Senate
to
overcome between countries. Chile's amabassador to the US, Juan Gabriel Valds, said other countries faced similar challenges gaining domestic
political support in their own legislatures to conclude the TPP. "We have political cycles, we have political circumstances and this is a debate that
passage on course, but not certain despite fast track - its top Obama priority and
PC still key - opponents are regrouping and huge political fight remains
Geewax, 6/23 -- Marilyn, Senior Editor and national economics correspondent, NPR, 6/23/15,
http://www.npr.org/sections/thetwo-way/2015/06/23/416854805/senate-votes-to-advance-the-white-house-tradeagenda
Senate Votes To Advance The White House Trade Agenda The Senate voted 60-37 Tuesday to advance President Obama's trade
agenda setting up a big victory for the White House and a painful loss for labor unions. This latest Senate
vote clears away procedural hurdles for legislation granting Trade Promotion Authority (TPA) to Obama. That power allows the president to negotiate trade pacts and
then put them on a so-called fast track through Congress. With
any trade deal, with no room for amendments. For decades, presidents have asked Congress for this power, saying that other countries don't want to approve
agreements with the United States unless they know any package is final. This trade-negotiation power has expired, and Obama wanted it renewed so
that he could complete a deal with 11 Pacific Rim countries. That trade deal, known as the Trans-Pacific Partnership, or TPP, is
still being worked out. Its progress has been slowed by Obama's lack of fast-track authority. But now, Obama is on
course to get that power so he can complete TPP. The Senate still needs to take a final vote on TPA, but passage now requires just
a simple majority. Given Tuesday's 60 votes in favor of clearing procedural hurdles, passage seems virtually certain when the Senate votes probably on Wednesday.
The House has already approved fast-track authority. So barring some amazing turnaround, Congress will send TPA legislation to Obama shortly, and he will sign it
have been putting up a fierce fight to stop TPA, which they say leads to secretive trade
deals that benefit corporations but harm workers. After the vote, Sen. Sherrod Brown, D-Ohio, a union supporter, took to the Senate floor
into law. Unions
to say the vote was "shameful" because it would open the door to more trade deals. In contrast, Senate Majority Leader Mitch McConnell, R-Ky., praised the vote and
support. To win Democratic votes for TPA, Republican leaders in the House and Senate have pledged to allow votes on legislation renewing Trade Adjustment
Assistance (TAA), a program to help displaced workers, as well as a bill to extend trade preferences to sub-Saharan African nations. McConnell also promised to
move quickly to complete legislation that would step up enforcement of trade laws. Those bills, supported by the White House and by the great majority of
Moving forward
with a full trade agenda has been a key goal for the White
House . But the battle to do so has created a lot of hurt feelings between the Obama
Democrats, have been stalled amid procedural maneuvering to get TPA done. It now appears they will move forward.
administration and trade opponents, who include union members, environmentalists and consumer
advocates. Those opponents are now regrouping for the next fight .
Fast track makes TPP passage likely, but not guaranteed still a big fight key to
asia pivot biggest fight in house = no filibuster is irrelevant
Werner, 6/24 Erica, Reporter @ Associated Press, Boston Herald, 6/24/15,
http://www.bostonherald.com/news_opinion/national/2015/06/senate_vote_moves_obamas_trade_agenda_to_brink_
of_enactment
With Obama within reach of major trade victory, opponents vow to fight individual
treaties Senate vote moves Obama's trade agenda to brink of enactment President Barack Obama's longpursued trade agenda took a giant step toward becoming law on Tuesday, and opponents
grudgingly conceded they now must fight on less-favorable
terrain . A key Senate vote greatly brightened Obama's hopes for a 12-nation Pacific-rim trade
agreement, a keystone of his effort to expand U.S. influence in Asia. The trade pact would be a
high point in a foreign policy that has otherwise been consumed by crisis management , and would give Obama a rare
legislative achievement in the Republican-controlled Congress. The Senate voted 60-37 to advance his bid for "fast track" negotiating authority. That was the
minimum number of votes needed on the procedural question. But final passage, expected no later than Wednesday, needs only a simple majority, which would let
Obama sign fast track into law. The president also wants to continue a retraining program for workers displaced by international trade. House and Senate support
appears adequate, but even if that measure stumbles, the long-coveted fast track bill will be on Obama's desk. "This is a very important day for our country," Senate
Majority Leader Mitch McConnell, R-Ky., said. In
leaders vital in pushing the agenda forward, with only modest help from Democrats. The
labor unions that play important roles in Democratic primaries. They say free-trade agreements ship U.S.
jobs overseas. Obama, major corporate groups, GOP leaders and others say U.S. products must reach
more global markets. They say anti-trade forces have exaggerated the harm done by the 1994 North America Free Trade Agreement, or NAFTA. Previous
presidents have enjoyed fast track authority. It lets them propose trade pacts that Congress can reject or ratify, but not change or filibuster. Obama
wants to complete negotiations for the 12-nation Trans-Pacific Partnership, or TPP. Members include Japan, Mexico and Canada. He
would ask Congress to ratify it, following weeks or months of
the
Pacific-rim proposal becomes public, the group said, "MoveOn members and our allies nationwide will hold our
elected officials accountable and urge them to vote down any deal that's bad for the
American economy."
passage likely, but not guaranteed Obama PC still key, its his top priority and hes
pushing hard TPA vote only motivates opposition and shifts fight onto TPP
Davis, 6/24 -- Susan, USA Today, 6/24/15,
http://www.usatoday.com/story/news/politics/2015/06/24/trade-fast-trackquestions/29214127/
fast track." Passage of the legislation on Wednesday is a
huge win for President Obama and Republicans, who formed a rare alliance to enact it over the opposition of the majority of Democrats. Here is a primer on the latest in the trade
For the first time since 2007, Congress has approved the renewal of trade promotion authority (TPA), known as "
debate: Q: Why does Obama want fast track authority? A: Fast track creates an expedited legislative process for presidents to get trade bills through Congress. The authority expired in 2007, and
the president's hand to finalize negotiations in trade talks. The new fast-track authority is good for six years and may be
used to consider potential agreements from several ongoing trade negotiations. Chief among
them is the Trans-Pacific Partnership ( TPP) , a 12-nation pact with Asia-Pacific nations that is one of the largest trade agreements ever
negotiated. TPP is a cornerstone of Obama's foreign policy agenda with
Asia and a top policy priority in his remaining 18 months in office .
Obama says it will provide the U.S. a stronger foothold in emerging markets and provide an economic
counterbalance to China in the region. Q: But if it's a top Obama priority , why are
Democrats so opposed? A: TPA sparked a rare moment of disunity for Obama and congressional Democrats, in part because the
party's base has soured on trade and its effects on the U.S. economy. Every major labor union opposed TPA, as did
the majority of Democrats in Congress. Just 28 of the of 188 House Democrats voted for TPA as did just 14 of 46 Senate Democrats, which includes two independents. Obama took on his party's
Democrats have
historically been more skeptical of trade agreements, and a lagging U.S. economy
base on this, sparring publicly with Sen. Elizabeth Warren, D-Mass., and touting renewed TPA as the most progressive fast-track agreement in history.
and slow wage growth for American workers made it an ever harder sell in the
current political climate . Michigan Rep. Sander Levin, a top House Democrat on trade issues, has
also said Democrats worry the pending trade agreements will
undermine human rights and environmental standards, among
other concerns . Q: So who are the winners? A: It's a victory for Obama, as well as a number of congressional
Republicans who worked with the administration to get it passed, including Senate Finance Chairman Orrin Hatch, R-Utah, House Ways and Means
Chairman Paul Ryan, R-Wis., as well as House Speaker John Boehner, R-Ohio, and Senate Majority Leader Mitch McConnell, R-Ky., who helped devise a legislative gambit to get fast track
through Congress after an initial rebellion by House Democrats. Oregon Sen. Ron Wyden was also a critical Democratic player in crafting TPA. While the White House may view Wyden as a
bill in a poorly executed strategy to slow down or change TPA. The move extracted no changes and did not slow the process in any substantial way, leaving Democrats empty-handed and backed
Pelosi announced Wednesday she would vote for TAA this time
because "it can open the door to a full debate on TPP." Labor unions, who
into a corner to support trade adjustment assistance when it returns to the floor this week.
worked hard to keep Democrats in line to defeat TPA, also take a hit with its passage.
However, union leaders say it will only serve to motivate union voters at the ballot box. Q: When will
TPP come up for a vote? A: There are no votes scheduled yet on TPP. Assuming the negotiations are finalized, fast track
requires a 60-day public review period before Congress can vote on it. Realistically, The Asia-Pacific trade agreement is unlikely to come
up for a vote before the fall as Congress confronts pressing legislation to fund the nation's highways and grapples with a log jam over the annual spending bills. TPP opponents are
pessimistic about their chances to defeat the trade bill once it comes up for a vote,
as the vote for fast track indicates that there is majority support in
Key issues, and what lies ahead, for Obamas trade agenda
an alphabetical mix on trade that requires an explanation. The
priority of his last two years in office, is back on track . Trade Promotion Authority, also known as fast
track, appears on its way to final Senate passage and President Barack Obamas signature. Enjoyed by previous presidents, it lets the
administration negotiate trade agreements that Congress can reject or ratify , but not
change or filibuster. WHY IS TPA IMPORTANT? All parties agree that negotiating nations are unwilling to make
their best offers to the United States if they feel Congress is well-positioned to kill the deals. That
countries with poor environmental and workplace standards . Obama and others say U.S. products must reach more markets
in the global economy.
Congressional TPP passage not guaranteed Obama pushing but it will be a tough
political fight, despite fast track
Lopez, 6/24 Laura Barron-Lopez, covers Congress for The Huffington Post. Previously,
she reported for The Hill and E&E Publishing's Greenwire, Huffington Post, 6/24/15,
http://www.huffingtonpost.com/2015/06/24/pelosi-backs-taa_n_7654954.html
Im disappointed that the TAA bill isnt nearly as robust as it should be in light of a trade agreement that encompasses 40 percent of the global
economy," Pelosi wrote in a Dear Colleague letter to House Democrats. "While we may not all vote in the
same manner on TAA, I will support its passage because it can open the door to a full
debate on TPP
." Obama is currently negotiating the TPP with 11 Pacific nations. The TPP and two other large
trade deals that the administration is working on, together encompass over half of the world's economy. The passage of the agreements depends
on Congress granting him fast-track powers. Pelosi
track legislation expected to reach Obama's desk Wednesday evening and be signed into law, the public will have only two months to
read and understand deals such as the TPP after they are negotiated and before the president signs them. Congress will have to approve the deals
as quickly as one month after that, with no changes allowed. "While
battle over Obama's trade agenda has left Capitol Hill in chaos over the past
month, and is one of the few issues on which a majority of Democrats have found
themselves fighting the president.
Passage of trade bills just shifts the focus to fight over TPP itself passage not
guaranteed, obama must overcome intense political resistance
Babington, 6/25 -- Charles, covers Congress and national politics for Associated Press. Prior to joining AP in
2007, he worked at The Washington Post, where he covered politics, Congress and the White House, Star Tribune,
6/25/15, http://www.startribune.com/senate-and-house-prepare-to-complete-obama-s-trade-agenda/309734341/
With Congress set to finish Obama's trade bills, eyes turn to proposed pacts in
Asia
, beyond Congress is wrapping up President Barack Obama's trade agenda, one day after handing him the big prize of
"fast track" negotiating authority. Lawmakers appear ready on Thursday to approve a jobs retraining program for workers displaced by
international trade. Usually a Democratic priority, it briefly became hostage to Democrats' failed efforts to block fast track. Also on tap are
measures to renew the African Growth and Opportunity Act and to enact various customs provisions. Passage
TPP passage likely post-fast track, but congressional approval isnt a done deal PC
Key, vital to Asia Pivot and Econ
Hughes, 6/24 Krista, Trade Correspondent @ Reuters, 6/24/15,
http://www.reuters.com/article/2015/06/24/us-usa-trade-idUSKBN0P40BJ20150624
Obama's Pacific trade pact nears finish in U.S. Congress President Barack Obama's bid to
boost U.S. economic ties with Asia neared approval on Wednesday, when a six-week congressional
battle will culminate in a decisive Senate vote on legislation needed to seal his hallmark Pacific Rim
trade deal. After two brushes with failure, some fancy legislative footwork and myriad
backroom deals to keep the legislation alive, lawmakers are expected to grant Obama the
power to negotiate trade deals and send them on a fast track through Congress. Passage could push the 12nation Trans-Pacific Partnership (TPP), a central part of Obama's foreign policy pivot
on Tuesday to clear a procedural path for a final vote on passage of fast-track authority, which would
program to help workers hurt by trade. That bill faces a separate vote in the Senate, as early as Wednesday, and another in the House. Many
Democrats who opposed it last week now plan to support it, including House Democratic leader Nancy Pelosi. "I will support its
passage because it can open the door to a full debate on TPP ," she said in a letter to
colleagues. The top Democrat on the House Ways and Means Committee, Sander Levin, said he expects the "vast
majority" of Democrats to vote "yes." Republicans hope to pass both measures this week and send them to Obama for approval,
before going on a week-long break. The bruising congressional battle has pitted
Obama against many in his own party , including Pelosi, and prompted
blood-letting among Republicans after party leaders lashed out at conservatives who refused to back the trade agenda.
Although opinion polls show a majority of Americans support trade in general, congressional approval has been a tough
slog because labor unions and activists have campaigned against fast-track, warning of job losses and
vowing to retaliate against Democrats who break ranks to support trade. The front runner for the party's presidential
biggest trade deal since the North American Free Trade Agreement 20 years ago between the United States, Canada and
Mexico.
TPP passage likely post TPA, but not guaranteed Obama has enough PC to deliver
the votes now, but congressional politics still key its vital to trade and asia stability
Baker, 6/24 -- Peter, American political writer and newspaper reporter who is the White House correspondent
for The New York Times and a contributing writer for The New York Times Magazine, Prior to joining The New
York Times in 2008, Baker was a reporter for 20 years at The Washington Post, where he also covered the White
House during the presidencies of Bill Clinton and George W. Bush, NYT,
http://www.nytimes.com/2015/06/25/business/obama-bolsters-his-leverage-with-trade-victory-but-at-a-cost.html?
_r=0
In the near term, though, Mr. Obama is emerging with a more potent hand on the
world stage, having avoided a defeat that would have made him look like a lame
duck . The trade talks have come as he is at a critical stage in two other international negotiations, one with Iran to curb its nuclear program,
the other with Cuba to restore diplomatic relations. Mr. Obamas
agreement would transform economic rules across a fastgrowing region. If he gets this , Mr. Cha said of the president,
brief scare
into pro-trade senators early Tuesday. Republican Sen. Ted Cruz, a presidential hopeful, flipped his vote from support
in May to opposition, saying the issue had become "enmeshed in corporate backroom deal-making ."
The only other senator to change positions was Ben Cardin, D-Md. He voted in favor of fast track in May, but voted to block it Tuesday. For all the
bitter politics over trade , many economists say new trade agreements might affect the U.S. economy only modestly. Jobs lost
to trade might be roughly offset by jobs created, they say. Still, Obama and others say greater
Congress ," he said, fast track "will help America write the rules of the road and ensure that our new global economy will be
constructed to allow more hardworking Americans to compete and win."
Fast track increased chances of congressional TPP passage, but still not guaranteed
fierce dem opposition
AFP, 6/24 -- http://www.bangkokpost.com/news/asia/601496/tpp-chances-advance-in-uscongress
TPP chances advance in US Congress President Barack Obama inched
closer Tuesday to gaining a powerful tool as he tries to seal a trans-Pacific trade deal designed to counter
the economic might of China. The tool is called fast-track authority, under which once the United States signs a
trade deal with other countries, the president submits it to Congress for a yes-or-no vote . Lawmakers can
debate such an accord but not amend it. They have to vote yes or no, treating the accord as a whole rather than being
able to tweak a piece of it; they must in essence take it or leave it. A vote on giving Obama this authority will probably come Wednesday.
Negotiations on the trade deal itself continue. What happened Tuesday to help Obama was strictly a procedural matter, in the
Most
Democrats in both chambers of Congress oppose the Pacific
free-trade accord, saying among things it will cause Americans to lose jobs because of cheap
Senate. It was a vote on whether to shorten debate leading up to the definitive, final vote on granting Obama fast-track authority.
labor in Asia. So on this issue, Obama and the Republicans who control both chambers have become odd
bedfellows. In Tuesday's vote, most Senate Democrats tried to make life difficult for Obama by voting against
letting the fast-track bill move closer to a definitive vote. It was their final attempt to delay the process, and it failed. The final
numbers in the vote were 60-37. Of those voting in favor, 13 were Democrats who sided with the
Republicans. Gaining fast-track authority would mark a triumph for Obama in a saga that has torn his
Democratic Party apart in recent weeks. The vote will let the United States "negotiate and enforce strong, high-standard trade agreements
that are good for our economy and good for our workers," White House spokesman Josh Earnest wrote. The
private arbitration system which they say will allow companies to sue states over environmental or labor
laws that violate the terms of the Pacific trade deal. "The Senate vote today illustrates the raw power of wealthy campaign
contributors, Wall Street financiers, Big Oil and other corporate polluters to put the will of corporations in front of people and the environment,"
said the president of Friends of the Earth, Erich Pica. Tuesday's vote went ahead only after Republican leaders made a
concession: they agreed to pass, by the end of the week, a law aimed at helping workers who lost their jobs because of
previous free trade accords. The few Democrats who agreed to side with the Republicans had demanded this and
called it non-negotiable.
Obama Makes Capitol Hill Plea to Democrats on Trade Agenda Votes on fast-track authority, workers aid expected amid
struggle between President, fellow Democrats President Barack Obama made an impassioned plea Friday to House Democrats in an 11th-hour
bid to shore up support for his trade agenda ahead of a series of crucial votes. In a rare visit to Capitol Hill, Mr. Obama delivered
his closing argument to a Democratic caucus sharply divided over whether to support legislation that would grant the president fast-track
authority for a Pacific trade dealand extend aid to U.S. workers who lose their jobs because of foreign trade. The House was expected to begin
voting midday Friday on two contentious measures, with both expected to face razor-thin margins as a week of last-minute negotiations wound
down. Mr. Obama grounded his message in personal experience, telling lawmakers that his actions were aimed at lifting up American workers.
But many Democrats remained opposed to the fast-track bill Friday morning, and some said Mr. Obamas argument relied on simply trusting him.
The president said, I know steelworkers in the South Side of Chicago who lost their jobs and everything I do is for them. Well, I was born and
raised in Detroit and I represent Minneapolis, so I dont really think his emotional tie to displaced workers is greater than mine or anybody
elses, said Rep. Keith Ellison (D., Minn.), co-chair of the House Progressive Caucus, who plans to oppose both key trade measures Friday. I
really disagree with him on this more and more. Lawmakers said Mr. Obama boiled down his argument to play it straight and not use
legislative gambits to bring down a complicated package of trade bills He made a very powerful statement. It was about Democrats voting
according to their own conscience and doing the right thing, said Rep. Michael Honda (D., Calif.), who opposes the trade package. Passage
of the trade legislation would deliver a rare, second-term political gift from a GOP-controlled Congress to
Mr. Obamawho squared off against labor groups in a bruising Democratic battleas well as to
business groups and Republican leaders who put aside their suspicion of the White House to advocate for
the trade legislation. The presidents excursion to Capitol Hill comes after a surprise appearance Thursday night at the congressional baseball
game. There, he made a personal pitch to House Minority Leader Nancy Pelosi (D., Calif.) Approval of fast track would give Mr.
Obama the power to submit trade deals to Congress for an up-or-down vote, without amendments , as
previous presidents have done. Such power would ease passage of the Trans-Pacific
Partnership,
a near-final deal between the U.S. and 11 other nations around the Pacific Ocean that would cover nearly 40%
of the world economy. The Senate approved trade legislation late last month, but its fate remained in jeopardy in the House as Democrats
Thursday night raised late concerns over the bill, which many in the party oppose. In the latest twist, many Democrats were expected
to oppose a measure extending a workers assistance program long championed by their party. Democrats had balked at a provision in the Senate
bill that pays for the program with cuts to Medicare providers. In a deal painstakingly negotiated and refined this week by Mrs. Pelosi and
Speaker John Boehner (R., Ohio), the program, known as Trade Adjustment Assistance, or TAA, would be funded by a different source. But some
Democrats still had qualms because the fix would be made through a separate piece of legislation, and they worried the structure of the deal could
open them up to political attacks over the Medicare cuts. The House will hold two fast-track votes Friday, one on the portion of the Senate bill
that deals with worker aid legislation andif that passesone on the part of the bill providing fast-track powers to Mr. Obama. The two issues
were split up in a procedural maneuver known as dividing the question to allow conservatives opposed to the workers aid to vote against it. The
chamber will also vote on altering and passing a customs and enforcement bill already passed by the Senate. Lawmakers said Mr. Obama
entreated them not to sink the workers aid program just to derail the fast-track provisions. The workers assistance program expires at the end of
September and many Democrats worried that this is their best opportunity to extend it. For us as a party to threaten to bring [TAA] down and
face the risk that we will lose it in its entirety in the future because the other side wont bring it up again, we would own that then as a party, said
Rep. Ron Kind (D., Wis.), chairman of the New Democrat Coalition, a group of more centrist, business-friendly Democrats. We would have to
go home and look into the faces of those workers who arent caught up in all the political squabbles of Washington and wondering why were not
there to help them get back on their feet again. But Democrats
political repercussions
heading into next years elections. Jim Dean, chairman of Democracy for
America, a progressive political-action committee, warned Democrats against supporting either the workers aid program or the fast-track
measure. We will not lift a finger or raise a penny to protect you when youre attacked in 2016, we will encourage our progressive allies to join
us in leaving you to rot, and we will actively search for opportunities to primary you with a real Democrat, Mr. Dean said in a statement Friday.
The notion of fast-tracking a
Mr. Obamas desk, ending the uncertain congressional support that is seen as crucial to completing the Pacific trade deal. If
fast track
becomes law, the trading partnersincluding Japan and Vietnamcould wrap up the TPP in coming weeks. Still,
complicated bureaucratic requirements mean the TPP is unlikely to come to a final up-or-down vote in Congress before the end of the year, and
potential trade deals with the European Union and other trading partners for the next six years. Failure of the trade legislation Friday would mark
a decisive victory for unions, who launched an aggressive campaign to defeat the legislation in final weeks, including releasing ads attacking
him two or three times to discuss the topic. Hes generally said that hell have the back of people who support him on this so Ill find out what
that means if I vote yes, said Mr. Peters. Its a tough vote for me because my districts very trade-dependent, but theres a lot of fear about
what happens if we vote for TPA.
been a several-month saga for Obama, with his bid to first win fast-track
authority so that he can then pass a massive 12-nation trade deal bobbing and weaving at
various points
, seemingly dead in the legislative waters, only to bounce back to keep advancing. Heres a
rundown of the key issues. Wait, didnt Obama already suffer a humiliating defeat on this? Yes, no, kind of, basically. On June 12, the House
upended Obamas push to win fast-track powers, known as Trade Promotion Authority (TPA), but it happened not on the centerpiece of the
legislation and instead on a side measure designed to provide funds for worker training to help those who have lost jobs because of global
competition. Even though almost every Democrat supports that worker program, more than 75 percent of House Democrats decided to oppose
that piece of the legislative package because of the unusual rule that Speaker John A. Boehner (R-Ohio) used to try to pass the trade initiatives
Fiercely opposed to
expanded trade deals, particularly the emerging Trans-Pacific
Partnership the president is closing in on, labor unions encouraged liberal
split into two major parts, each measure needed to win a majority or else the entire agenda stalled.
Democrats to oppose the program that their members have benefited from over the years because it meant stalling the overall
agenda. Republicans delivered far more votes (86) for the training program, Trade Adjustment Assistance (TAA), than they had ever expected,
but with just 40 Democrats backing Obama on that vote, he lost in a rout. That came after an unusual level of personal pleas
by the president, who has been widely criticized by Democratic lawmakers for not developing close
bonds with anyone on Capitol Hill. Before this vote he attended the annual Congressional Baseball Game for a few innings and
trekked to the Capitol before the vote. It was a very unusual moment for a presidents own party to so overwhelmingly reject his work. So,
how is this possible that the president still might win on trade? Rather than sulk, Obama
and his top advisers spent the next few days figuring out how to get around the
Democratic blockade
fast-track powers for trade deals and move that as its own stand-alone bill. They werent abandoning the other pieces of the trade
puzzle, but they decided that if everyone who already voted for fast-track would do so again, then TPA could be sent to the
presidents desk and there would be no need to hold other trade-related provisions hostage . The first step came
Thursday, six days after the initial defeat, when the House approved the fast-track-only bill on a similar vote, with the same 28 Democrats joining
with 190 Republicans to advance what Obama considers one of his most important final pieces of his presidency. On Tuesday, the Senate faces a
key test vote on the TPA stand-alone bill, needing 60 votes to overcome a filibuster from liberal opponents of the legislation. Most of the 14 protrade Democratic senators have signaled they will go along with the plan, despite previous demands that any vote for fast-track come attached
with the worker retraining funds. If Tuesdays roll call crests 60 votes, that sets up a final passage for trade authority on Wednesday and would
send the legislation to Obama to be signed into law. But what about worker training and the acronym trade programs? Sen. Orrin G. Hatch (RUtah), chairman
of the Finance Committee and a key negotiator on trade issues, has famously declared that
the worker retraining funds are the quid pro quo that is required to get Democratic votes for trade deals.
So, despite the apparent victory on expanded trade powers, Boehner and McConnell have pledged to Obama and other supportive Democrats that
they are also ready and willing to get the other pieces to the White House. And they have a handy vehicle to accomplish this. Rep. Paul Ryan (RWis.), chairman of the House Ways and Means Committee, tinkered with a third trade bill, boosting African trade. That sent the African trade bill
back to the Senate, after receiving nearly 400 votes in House. McConnell has taken that already popular bill and set it up to be amended to
include TAA and also a program to make U.S. steel manufacturers more competitive on the global markets. McConnell believes that the vote for
this package will resemble a test vote held last month that would have gutted TAA, but instead, 46 Democrats and 16 Republicans supported the
program. If that coalition holds together and clears the filibuster hurdle, slated for Wednesday evening, a final vote would come Thursday and
then send the African trade bill and its new parts to the House. Wont House Democrats still block TAA just like two weeks ago? Thats hard to
say, but White House officials and their pro-trade allies in the Capitol believe that this new plan will leave liberal opponents of Obamas trade
agenda with no choice but to approve the newly assembled combination. After initially citing many different reasons, most House Democrats
eventually said their opposition to TAAs worker funds was done solely to block fast-track. Now that the TPA bill will already be at
the White House, the incentive to vote against a collection of three bills that most Democrats otherwise
support might fade. Supporters of Obamas trade agenda believe dozens of members of the Congressional
Black Caucus and the Steel Caucus will now support the plan , and other Democrats have privately suggested they might
now vote for the package if it does nothing to stop the centerpiece of the original bundle TPA from getting signed into law. That vote
could happen Friday in the House. Is that all? Whats next? No, theres a lot
and that Republicans voted for even though they consider it a giveaway to organized labor. Pro-trade Democrats in the Senate now find
themselves in a place of both power and panic as they weigh whether to help Republicans retaliate against House Democrats, all the while
trusting those same Republicans to help pass the worker assistance program. Among the nearly 30 Democrats in the House
and
the 14 in the Senate with a record of supporting trade deals, the political motivations for strategizing with
the White House and Republicans at the same time are clear. Having already voted for the bill that would
give the president accelerated power to negotiate the broader Trans-Pacific Partnership, many are
already feeling the heat emanating from their left flank . In 18
months, if attack ads from labor ensue as promised, the incumbents will need a policy
It is up to both
beating from the far right for giving the president too much authority with their trade vote stick with
them, and perhaps even convince a few more Republicans to come along in case too many Democrats
balk. Taken together, the moves engage bipartisan muscles that have not been flexed in
a while. But Republicans may not be the biggest problem. Last month, 16 Republicans voted against an amendment that sought to strip trade
assistance from fast track. And some Republicans, especially those up for re-election, care about the worker assistance. I think it makes sense to
delay could
spell bad news for the presidents ultimate prize, the TransPacific Partnership , a deal that affects 40 percent of the global economy. Under the terms of
do it this way if we can get T.P.A. done, said Senator Pat Toomey, Republican of Pennsylvania. However, all this
the trade promotion legislation, Mr. Obama cannot even sign a completed Pacific trade deal for two months after negotiations
conclude. Then the final accord must be made public for review and comment for two additional months before
Congress can take it up. That means even if Congress can complete the
fast track bill before its July 4 recess, the actual trade accord could come before Congress
late this fall at the earliest, when the presidential primary season will no doubt
affect the debate. The politics of trade will only get more
fierce then .
PC Key to TPP its a tougher political fight than TPA, passage far from
guaranteed, TPA only keeps it a possibility success vital to Asia pivot and swamps
alt causes
Panda, 15 -- Ankit, foreign affairs analyst, writer, and editor with expertise in international relations, political
economy, international security, and crisis diplomacy. editor at The Diplomat since 2013. Researcher on Wikistrats
Asia-Pacific and South Asia desks. Former Research Specialist at Princeton University where he worked on
international crisis diplomacy, international security, technology policy, and geopolitics. Panda received his A.B.,
cum laude, in Public and International Affairs from the Woodrow Wilson School of Public and International Affairs
at Princeton University, The Diplomat, 4/17, http://thediplomat.com/2015/04/is-this-the-congressionalbreakthrough-the-trans-pacific-partnership-needed/
Senates Finance Committee introduced bipartisan Trade Promotion Authority legislation, known
as the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015), that
sets a range of constraints within which the president must pursue a final TPP agreement, but
unencumbers the executive branch from any congressional interference before a final deal is reached with
the assent of the 11 other nations involved in the negotiating processa group comprising
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and
Vietnam, in addition to the United States. TPA-2015 will affect future U.S. administrations and
sets a general set of principles for all trade negotiations carried out by the executive branch, not
just the TPP and the Transatlantic Trade and Investment Partnership (TTIP).
Under TPA-2015, all future trade agreements that the United States will sign on to must adhere to strict
standards on environmental protections, labor, and human rights . The last provision, according to the
New York Times reporting, was added as a Republican concession to satisfy the Senate Finance
committees ranking Democrat, Senator Ron Wyden. In the months leading up to this moment,
weve witnessed an odd partisan alignment where Congressional Republicans have backed a Democratic
presidents appeal for trade promotion authority (with the exception of some recalcitrant
Republicans who, as a matter of principle, would like to yield as little authority as possible to the
current administration). Liberal congressional Democrats, for the most part, have been a thorn in
the administrations side over the TPP, raising concerns about the agreements
potential to suppress U.S. wages among other issues. As The Diplomat reported in late 2013, 151
House Democrats wrote the White House expressing their opposition to the
TPP as a whole and any new TPA, sending signs that the trade agreement might be entirely
politically unfeasible for the administration.
An important point worth stressing is that while the TPA will simplify the
negotiation process, and increase the credibility of the United States Trade Representative and the
president in their interactions with foreign leaders, Congress has reserved the
capacity to have a final say in the passage of the deal . Under TPA2015, the Obama administration would be obliged to make the final text of a TPP agreement public at
least four months before Congress votes on it. (TPP negotiations have faced public and bipartisan
Congressional criticism for their opaqueness.) Congress retains its power, but
without TPA-2015, there would be no TPPthat much was a
certainty. With this legislation, the TPP, while still a distant light at the end
of a long tunnel of negotiations, remains a possibility.
The other 11 parties to the TPP negotiations will have taken note of todays announcement and
will read the development as an unambiguously positive development. Some states, such as
Vietnam, may balk at the human rights provisionan odd constraint for trade negotiations. The
timing of TPA-2015 will be particularly welcomed by the administration given that Japanese
Prime Minister Shinzo Abe is scheduled to visit the United States later this month. Japan and the
United States represent the two largest economies among the TPP group of 12 who together
comprise approximately 40 percent of world GDP.
The TPP is the economic crown jewel of the United States Pivotor Rebalanceto Asia.
Asia-Pacific states would see a concluded agreement as a guarantee
Congress but the economic interests of the other 11 states negotiating the TPP. With 19
months left in office, Obama may come to terms with the harsh reality that TPA
wasnt the hardest part of getting to the finish line on the TPP
after all.
Still, the TPA saga is far from over. TPA-2015 still has to gather the necessary votes to come into
law.
Obama PC key to TPP even with TPA politics more difficult going forward, fast
approval vital to political support congressional docket crowd out link
independently derails
Behsudi, 15 -- Adam, Trade reporter for POLITICO Pro, Prior to joining POLITICO, he covered international trade
policy for Inside U.S. Trade, where he tracked down the latest news on the Trans-Pacific Partnership, Politico, 1/2/15,
http://www.politico.com/story/2015/01/trade-outlook-2015-113793.html?hp=t3_r
Trade's big breakout Could 2015 be the year of trillion-dollar deals? The new Republican
NAFTA 20 years ago. And with trillions of dollars at stake for both the domestic and global economies,
trade could become a signature issue for both Republicans and the president as they look to
claim significant political victories. The temperature is rising , and I think, at least now, we have
President Obama making very direct comments to support the
trade agenda in a way that I hadnt seen in a long while , said Mireya
Solis, a senior fellow and Japan expert at the Brookings Institution. The Trans-Pacific Partnership
agreement, which would cover about 40 percent of the worlds gross domestic product and about a third of global trade, is expected to
get a huge boost from the GOP takeover of the Senate, with Republicans eager to pass legislation that would expedite
congressional approval of that and several other pacts. But the trade promotion authority legislation, which would allow Obama to send the
agreement to lawmakers for an up-or-down vote with no amendments, could also serve as a legislative vehicle for a slew of other trade bills that
have been waiting in the wings, including measures to renew tariff cuts for developing nations, sub-Saharan Africa and U.S. manufacturers, and
to reauthorize the Export-Import Bank. The last time Washington saw even a piece of this kind of trade action was in 2011, when Congress
approved the South Korea, Colombia and Panama free trade deals in rapid succession. The United States is also expected to finish negotiations on
major expansion of an Information Technology Agreement with nearly 80 countries that account for about 90 percent of world technology trade.
The deal, which would eliminate duties on a long list of tech products, came within a hairs breadth of concluding this month, but talks broke
down after China refused to meet other countries demands for concessions on what goods to make duty-free. The White House will also press
forward with the Transatlantic Trade and Investment Partnership between the U.S. and the 28-nation European Union, a deal even bigger than the
TPP, with European Union leaders earlier this month calling for the talks to finish up by the end of 2015. If all of that isnt enough, the U.S. is
also pushing a new Environmental Goods Agreement with 13 other members of the World Trade Organization including China and the EU
that compose about 86 percent of global trade. Talks on a new global services agreement and a bilateral investment treaty with China also will
proceed. Not all of those will get done in 2015, U.S. Trade Representative Michael Froman said. But we hope its a very productive year both
in terms of negotiations and the legislative agenda. Before the biggest trade deals can get done, Obama will need to get lawmakers to give him
the legislative authority to expedite their debate and passage. Also known as fast-track legislation, the Obama-backed TPA bill failed to advance
earlier this year after outgoing Senate Majority Leader Harry Reid (D-Nev.) refused to take it up out of concern that a vote on the bill before the
midterm elections would put Democrats in the politically hazardous position of possibly damaging their support from labor and environmental
groups. Even with the GOP majority in the Senate, the bill will still need Democratic support to get through Congress, political observers say.
The
said Scott Miller, a senior adviser at the Center for Strategic and International Studies. I think everybody has
concluded, including myself, that
White House needs to rally support from at least 50 House Democrats to get the bill through the
easy task given the post-election decline in the number of trade-friendly Democrats.
Underscoring the difficulties the administration could face from intransigent Democrats, the White
Houses legislative abilities were tested just this month when countering Democratic opposition to the massive
lower chamber no
even if the votes on a fasttrack bill can be had, this years stalled effort to get the legislation underway has
left little time to spare , especially given that Democratic
support could again grow more scarce once the presidential campaign kicks
into full gear toward the beginning of 2016. The point isnt lost on congressional trade
leaders . Incoming Senate Finance Chairman Orrin Hatch (R-Utah) said trade will top the committees agenda in early 2015. Sen. John
spending package, which barely squeaked through to passage, Miller said. And
Thune (R-S.D.), a Finance committee member and No. 3 in the Senate GOP leadership as Republican Conference chairman, said the bill would
likely be one of the first pieces of legislation that emerges from the panel, which has jurisdiction over trade. Trade supporters consider the bill
vital to ushering the Asia-Pacific trade talks toward their conclusion because it would give other countries the confidence to resolve major
outstanding issues such as access to medicines in developing nations, environmental protections and Japanese agricultural and U.S. auto tariffs
without having to worry that any hard-won concessions could be picked apart by congressional amendment. Bilateral talks between the U.S.
and Japan on the tariffs issue have proved particularly troublesome for the larger deal. In a breakthrough last month, Tokyo proposed more
meaningful tariff cuts on U.S. beef, pork and dairy products, but the negotiations have since stalled again over the United States refusal
to meet Japans demands for lower auto parts tariffs. Theyre kind of stuck because nobodys sure where the United States bottom lines are,
Miller said. I think thats the reason to get TPA, so all our trading partners know where the Congress bottom line is, and at that
point you conclude pretty quickly. The first six months of the year will be a critical window for finishing up the talks given the
tight timeline, officials from the TPP countries have said. Even if the pact gets signed, it will still have to go through a
legal scrubbing and translation before a bill to ratify the deal can be introduced. That could mean that the
implementing legislation would have to be drafted over the August recess with a view to getting the bill to
a vote before Thanksgiving, a former Senate Democratic aide speculated. If people are motivated to
finish, they could do it really, really quickly assuming they got the
votes , the former aide said, adding that the timing that the administration and others are talking about
strikes me as incredibly aggressive, but maybe not impossible. In
2011, the House and Senate were able to pass bills ratifying the deals with South Korea, Colombia and
Panama in a single day, the aide noted. But those agreements had been concluded in 2006 and 2007 under
President George W. Bushs administration and had a number of provisions renegotiated before the Obama
administration brought them to Congress for a vote.
PC Key - General
PC key to congressional passage of TPP deal itself it will be biggest political fight of
obamas presidency
Vinik, 15 -- Danny Vinik is a staff writer at The New Republic, New Republic, 4/8/15,
http://www.newrepublic.com/article/121476/trans-pacific-partnership-foundation-all-futuretrade-deals
Why Obama Is Spurning Liberals With a Massive Trade Deal Elizabeth Warren and labor unions hate it, but
are their worries justified? Last month, at the Peterson Institute for International Economics in Washington, D.C., AFL-CIO President
Richard Trumka gave a 29-minute speech in opposition to the Trans-Pacific Partnership (TPP), a massive 12-country trade
agreement that the Obama Administration hopes to complete this year. At the end of the day, the partisan battles are really just so much noise,
he said. For me, its all got to come back to one simple question: Is our trade policy working for Americas workers and for our nation as a
whole? And the simple answer to that question is it isnt. In their debate afterward, Trumka and Adam Posen, the president of the host institute
and a supporter of the TPP, sometimes couldn't even agree on basic facts, like how many manufacturing jobs Germany has lost in the past 20
years. Often they resorted to generalizations instead: At one point in the largely cordial conversation, Trumka said to Posen, I know you are a
dyed-in-the-wool free trader. If I cut you open, little NAFTA balls would fall out of you. The crowd laughed, but the remark represents what
makes trade agreements so impossible for policy journalists to understand. Opponents of the TPP like Trumka insist that its supporters think just
about any free trade agreement will be good for the United States, regardless of its details. On the other side, supporters of the TPP insist theyve
learned from the failures of NAFTA; this time, they say, the trade agreements will benefit American workers. Who is right? I don't knowand
Im not the only one. Writing at Vox, Ezra Klein said he was in the undecided camp, while Matt Yglesias called the TPP one of the most
frustrating things to cover in my career. New York Times columnist Paul Krugman came out against the deal, while
trying to pass it; David Wessel, writing for the Wall Street Journal, recently wondered why labor unions
are working so hard to block it . If anything is clear about the TPP, its that no one
knows exactly why everyone cares so much . But talk to the key players in
the debate , and it becomes clear that the TPP is the most
important economic fight happening in Congress this year and
one of the most important of Obamas presidency . For once, it's not a partisan
debate. Many
on the right, including Representative Paul Ryan, support the deal, while the White House has faced the
most intense criticism from members in its own party. The intraparty party
fight often resembles the Trumka-Posen debate: high on rhetoric, short on substance. But it's possible to cut
through the noise and discover the real issues at play. Here are the four most contentious parts of the
trade pact: This Is Not About U.S. Jobs It's been more than two decades since President Bill Clinton signed the North American Free Trade
Agreement (NAFTA), and the left still disagrees significantly on how NAFTA affected U.S. workers. Many liberals, for instance, blame NAFTA
for the 29 percent decline in manufacturing jobs since 1994, while acknowledging that other factors, like globalization and technological change,
have contributed to job losses and wage stagnation, too. That complaint about NAFTA, whatever its merits, is informing much of the liberal
opposition to the TPP. It shouldn't: Supporters and opponents of the TPP largely agree that its direct effect on the U.S. economy will be minor.
There are going to be very few jobs that will be affected, said Robert Scott, the director of trade and manufacturing research at the left-leaning
Economic Policy Institute, who opposes the deal. Jared Bernstein, formerly the top economist for Vice President Joe Biden, who hasnt
formulated a final position on the TPP, agreed. "I think most economists who understand these dynamics and even have modeled them will argue
that theres not much of a jobs impact from these kinds of deals, he said. "I would largely discount the large job loss estimates as well as the
large job gain estimates." I don't think we're talking about an enormous impact on the U.S. economy, said Gordon Hanson, an economist at the
University of California, San Diego, who focuses on international economics and supports the TPP. Of course, there has to be some impact. The
trade deal will directly affect American workers in two ways. First, it will reduce tariffs in the Pacific region, particularly in the services industry
where the U.S. has a competitive advantage. (While some services, like a plumber or a barista, obviously cannot be traded between countries,
others are increasingly tradable in our globalized economyfinancial analysts, lawyers, and consultants, to name a new.) Existing trade
agreements don't deal very well with services, said Hanson. This trade agreement gives an opportunity to put the major sectors of the economy
on equal footing. Since the U.S. is a very open economy, its tariffs are currently lower than those in the TPP countries. In other words, U.S.
exporters face higher barriers to trade than TPP exporters face to trade with the United States. Reducing those barriers benefits U.S. workers.
Second, the TPP also includes enforceable labor standards. These rules will require foreign countries to strengthen their laws including
implementing a minimum wage, setting maximum work place hours and granting workers the right to collectively bargain. All of these things
will raise the cost of foreign labor, giving U.S. companies fewer economic incentives to ship jobs overseas. We have learned from one
generation of agreements to the next how best to shape globalization, Froman said. Labor groups and progressive economists are not convinced
that these standards will actually do much to help U.S. workers. The agreement may have a formal mechanism for enforcement, they say, but it
doesnt mean the U.S. will actually use it. The left also rejects the Obama administration's argument that without the TPP, China will set the labor
standards in the region through a trade agreement it is currently negotiating. "I don't think China setting the rules with these other countries is
going to have such a big impact on the United States as some would suggest," Scott said. Still, it's hard to imagine any way that the TPP's labor
standards would actually make U.S. workers worse off. I ask people, 'Why would you block us from raising workers' standards in Vietnam?
Froman said. Through TPP were on the verge of historic labor progress, and that will bring a better life to people in other countries and a more
level playing field for our workers. Why Won't the U.S. Address the Trade Deficit? Economists across the political spectrum believe that
the U.S.s large trade deficitthe difference between its imports and exports, which was $505 billion last yearcauses significant damage to the
economy. Think about it this way: When Americans buy foreign goods and services, they are supporting jobs in foreign countries. The more that
imports exceed exports, the more U.S. trade is helping to support foreign jobs.1 But reducing the trade deficit is easier said than done. Ideally, the
TPP would restrict countries from artificially lowering the value of their currency to boost their own exports and hurt U.S. exports, but there's no
chance of such a provision in the TPP. Much of the world thinks that the Federal Reserve manipulated the dollar through its quantitative easing
programs, so any chapter on currency manipulation that could possibly receive approval from the 11 other TPP countries would have
to put restrictions on the Fedsomething the Obama administration would never agree to, rightfully. Liberal economists understand these
dynamics, but many are sick of the Obama administrationand prior administrationsrefusing to address the trade deficit. In December,
Bernstein authored a blog post titled, Without a currency chapter, the TPP should not be ratified. When I asked him about it, he said, My
position has softened since then. I think Ive been moved by administration arguments that a currency chapter would queer the deal and I think
thats a pretty strong argument. But he still had a major problem with the White House's stance. What I view as unacceptable, he said, is the
position that we cant do anything in the TPP and we cant do anything out of the TPP and therefore we just have to live with the status quo.
What Elizabeth Warren Hates About the TPP No part of the TPP has invoked such over-the-top rhetoric than the section
on Investor State Dispute Settlements (ISDS). Agreeing to ISDS in this enormous new treaty would tilt
copyrights dont expire until 70 years after the death of the author. While liberals are looking to roll back
these laws, the Obama Administration is exporting them to other countries through the TPP, making
even supporters of the deal uneasy .
representative, former Dallas mayor Ron Kirk (D), conducted a policy review. Kirk,
commitment to enforceable labor and environmental protections. But Democrats have been cool to the
sales pitch, and Obama has had to personally call lawmakers . In the meantime, Asian countries are
growing impatient and U.S. allies in Europe, including Britain and Germany, agreed recently to support a new China-led Asian development bank over the objections
of the Obama administration. Japanese Prime Minister Shinzo Abe is expected to appeal to U.S. lawmakers in an address to a joint session of Congress when he comes
skepticism he did in Galesburg a decade ago among those he has tried the hardest to convince. On a trip to Cleveland last month, Sen.
Sherrod Brown (D-Ohio) accompanied the president on Air Force One. The trade deal comes
talking about it as part of national security, not part of his economic message, because it doesnt work.
Obamas PC Key to TPP unrelated issues spill over, even GOP could bail, and
docket crowd out is independent link TPA guarantees nothing - must whip votes,
provide political favors and control narrative
Freeman, 15 -- Charles W. Freeman III, senior fellow in the China Center at Brookings. As an international principal at
Forbes-Tate, he directs the firms global efforts. He advises companies, financial institutions, and associations on strategy,
regulatory issues, and trade policy matters overseas, with particular attention to China and other Asian markets. Freeman
previously served as assistant U.S. trade representative for China affairs. In his role as the United States chief China trade
negotiator, he helped to shape U.S. trade policy toward China, as well as Taiwan, Hong Kong, Macao, and Mongolia. Freeman
also oversaw U.S. efforts to integrate China into the World Trade Organization. Earlier in his government career, he served as
legislative counsel for international affairs for Senator Frank Murkowski of Alaska. After leaving government, Freeman has
advised a wide array of firms and associations on Chinese and East Asian business and regulatory matters. In addition to his work
in private practice, Freeman has held the chair in China studies at the Center for Strategic and International Studies. He has been
a frequent commentator on U.S.-China relations and Chinese economic issues and has published extensively on Chinese trade
and regulatory matters. Freeman received his Juris Doctor from the Boston University School of Law and his bachelors in Asian
studies with a concentration in economics from Tufts University. He studied Chinese economic policymaking at Fudan
University in Shanghai and Mandarin Chinese at the Taipei Language Institute. He is a director of Harding Loevner Funds and
the National Committee for U.S.-China Relations, Washington Examiner, 2/2/15, http://www.washingtonexaminer.com/tradecan-obama-get-it-done/article/2559487
If the Obama administration will find it difficult to appease the Left , a TPP that
seems focused more on left-of-center concerns than on opening markets will undermine the
make an already fraught process that much riskier . I hope, said one Republican trade
staffer, theyre smarter than that. Even beyond the TPP countries, other eyes are watching goings-on in Washington carefully. During the State
of the Union speech, the president raised the specter of competition with China as a reason to pass trade
legislation. "China wants to write the rules for the world's fastest-growing region, he said. It may have been a message intended
only for the Hill fodder for the China paranoia that sometimes drives legislation . But the
administration has for years been trying to convince China that the TPP and the pivot to Asia were not about containing Chinas rise. The State
of the Union speech complicated that message, and official and unofficial Chinese reactions were blistering. The White House will have to
smooth over those ruffled feathers to manage that most important strategic relationship, even if it is very likely that anti-China rhetoric
Momentum behind a TPA bill could pick up quickly. Rumors that the Senate Finance and House
Ways & Means Committees are moving to mark up bills in February and March could begin to crank up the political machinery. And that
will
Obamas all in on TPP PC and retail politicking still key, even after TPA passage
requires forgoing PC expenditures on unrelated legislative policies
Freeman, 15 -- Charles W. Freeman III, senior fellow in the China Center at Brookings. As an international principal at
Forbes-Tate, he directs the firms global efforts. He advises companies, financial institutions, and associations on strategy,
regulatory issues, and trade policy matters overseas, with particular attention to China and other Asian markets. Freeman
previously served as assistant U.S. trade representative for China affairs. In his role as the United States chief China trade
negotiator, he helped to shape U.S. trade policy toward China, as well as Taiwan, Hong Kong, Macao, and Mongolia. Freeman
also oversaw U.S. efforts to integrate China into the World Trade Organization. Earlier in his government career, he served as
legislative counsel for international affairs for Senator Frank Murkowski of Alaska. After leaving government, Freeman has
advised a wide array of firms and associations on Chinese and East Asian business and regulatory matters. In addition to his work
in private practice, Freeman has held the chair in China studies at the Center for Strategic and International Studies. He has been
a frequent commentator on U.S.-China relations and Chinese economic issues and has published extensively on Chinese trade
and regulatory matters. Freeman received his Juris Doctor from the Boston University School of Law and his bachelors in Asian
studies with a concentration in economics from Tufts University. He studied Chinese economic policymaking at Fudan
University in Shanghai and Mandarin Chinese at the Taipei Language Institute. He is a director of Harding Loevner Funds and
the National Committee for U.S.-China Relations, Washington Examiner, 2/2/15, http://www.washingtonexaminer.com/tradecan-obama-get-it-done/article/2559487
. Whatever its economic merits, it is the strategic imperative of TPP that may be
to rebalance or pivot to
the worlds fastest growing region. The trade deal would cement the role of the United States as the prime mover on regional economic and strategic architecture. If TPP fails, the international power, prestige and economic clout of the
United States will suffer a grave setback.
This is why other all America's trade partners are waiting anxiously for Obama to be granted trade promotion
authority (TPA). Until he gets it, they will not give their final, best offers to the his negotiators. TPA would force an up-or-down vote on the deal the president sends to Congress. But who in Congress, Republican or Democrat, is eager
to give the president a blank legislative check on any issue these days? Republicans, particularly those on the Right, are loath to provide him with powers the the Constitution otherwise reserves to Congress.
Democrats,
smarting from their election losses of 2014, which many ascribe to Obamas unpopularity, arent
keen on helping him burnish his legacy, particularly with an issue that
splits his base .
Supporters of trade and the TPP are hoping that
Talk of steamrolling probably doesnt do much to advance the cause.
the presidents alternatively vaunted and lampooned skills as a community organizer will be brought to
bear and knit together this fractious community. Similar efforts by the Clinton and
for a trans-Atlantic trade and investment partnership with Europe). But if the President is truly going to launch a campaign
this White House. After all, the presidents signature piece of legislation, the Affordable Care Act, was notoriously passed with a White House legislative strategy that consisted primarily of cheering from the sidelines. If the legislative
activity on trade is as buzzing as some in the administration suggest, its a little alarming that few if any of the key members and staffers on the Hill seem to have heard from anyone at 1600 Pennsylvania Ave. purporting to be
whipping their votes. Froman has thus far been the frontman selling the trade agenda, but despite his strengths, he cant deliver the votes to pass the agreements he is negotiating with other countries. Whats in the
TPP will
dislike trade. The primary beneficiaries of trade liberalization are, after all, private sector
companies whose agenda is held in deep suspicion by the Left
. Despite the fact that only around 15 percent of the private sector
the trade agenda only took up 15 sentences of an hour-long State of the Union address
traditional progressive
Obama PC key to congressional TPP approval vital to swing votes and overcome
fierce political opposition
Nakamura, 15 -- David, White House Reporter @ Washington Post, 4/15,
http://www.washingtonpost.com/politics/obamas-evolution-on-trade-will-put-him-at-warwith-his-party/2015/04/15/dabd42f4-ccc8-11e4-a2a7-9517a3a70506_story.html
Obamas proposal for more trade with Asia may not go over so well in his own party Galesburg, Ill., was a town
on the brink. The local Maytag plant had recently shut its doors, putting hundreds of union employees out of work; frustrated residents despaired
that technology and globalization had upended the manufacturing foundations of their community. Against that backdrop, Illinois junior U.S.
senator, Barack Obama, delivered a commencement speech at Knox College and directly addressed the seismic changes affecting the economic
life of places like Galesburg. He suggested that he understood the problem and that he would pursue policies to provide a solution. Its as if
someone changed the rules in the middle of the game and no one bothered to tell these folks, Obama said. Then he challenged the graduates:
What do we do about this? How does America find its way in the new global economy? What will our place in history be? Ten years later,
President Obamas answer to those questions more trade with Asia sounds to a lot of people like more of the same,
exactly the kind of solution that led to the problems in the first place . As early as this week, Congress is expected to
debate fast-track legislation that would give the administration more authority to complete a massive, 12-nation free trade pact in the
Asia Pacific that Obama has called a cornerstone of his second term a way to
ensure U.S. competitiveness in the face of a rising China. It
Democrats . White House allies said the danger is that Republicans are supporting the president on trade
in large part because they know it could divide Democrats going into an
election year. Obamas embrace of the Trans-Pacific Partnership ( TPP) faces fierce
opposition from some of his closest political allies and the
organizational heart of the Democratic coalition: labor unions, environmental groups and the progressive
wing of Congress. His critics on the left contend the pact would help American corporations i n state-controlled
foreign markets but would lead to job losses and exacerbate the growing income gap at home. If Obama pushes
hard but fails, Republicans will still be fine with that if they can ignite a civil war on
the left, said Austan Goolsbee, who chaired Obamas Council of Economic Advisers from 2010 to 2011 and supports the trade push.
Already, the AFL-CIO has suspended all political contributions to focus on defeating the
TPP . Rust Belt Democrats have accused Obama of betraying his past opposition to big trade deals as a
senator. And Sen. Elizabeth Warrens fierce criticism of provisions favoring corporations has
made it difficult for Hillary Rodham Clinton to embrace the pact in her White House bid even though she touted it as
secretary of state. Why, exactly, should the Obama administration spend any political
capital ... over such a deal? asked the New York Times liberal economic columnist Paul Krugman in a blog post. For
Obama, trade offers perhaps the best chance for him to secure a large-scale,
more personal terms, suggesting that his beliefs were shaped by his upbringing in Hawaii and Jakarta and his time as a community
organizer for displaced workers in Chicago, where he saw the human costs of international competition.
capital key to TPP must sway dem votes AND prevent GOP defections entrenched political factors means approval ALWAYS tough presidential sell,
NEVER guaranteed even pro-trade GOP members could bail
Freeman, 15 -- Charles W. Freeman III, senior fellow in the China Center at Brookings. As an international principal at
Forbes-Tate, he directs the firms global efforts. He advises companies, financial institutions, and associations on strategy,
regulatory issues, and trade policy matters overseas, with particular attention to China and other Asian markets. Freeman
previously served as assistant U.S. trade representative for China affairs. In his role as the United States chief China trade
negotiator, he helped to shape U.S. trade policy toward China, as well as Taiwan, Hong Kong, Macao, and Mongolia. Freeman
also oversaw U.S. efforts to integrate China into the World Trade Organization. Earlier in his government career, he served as
legislative counsel for international affairs for Senator Frank Murkowski of Alaska. After leaving government, Freeman has
advised a wide array of firms and associations on Chinese and East Asian business and regulatory matters. In addition to his work
in private practice, Freeman has held the chair in China studies at the Center for Strategic and International Studies. He has been
a frequent commentator on U.S.-China relations and Chinese economic issues and has published extensively on Chinese trade
and regulatory matters. Freeman received his Juris Doctor from the Boston University School of Law and his bachelors in Asian
studies with a concentration in economics from Tufts University. He studied Chinese economic policymaking at Fudan
University in Shanghai and Mandarin Chinese at the Taipei Language Institute. He is a director of Harding Loevner Funds and
the National Committee for U.S.-China Relations, Washington Examiner, 2/2/15, http://www.washingtonexaminer.com/tradecan-obama-get-it-done/article/2559487
Trade -- Can Obama get it done? The day after the 2014 election, Senate Republican Leader Mitch McConnell was
asked what kind of proposals his new majority could work on with President Obama. Trade agreements,
McConnell said, adding, The President and I were just talking about that before I came over here." And when Obama called on Congress
during his State of the Union speech this month to pass legislation supporting new trade agreements, it was one of the few subjects that
did not raise Republican ire. It did not meet with much enthusiasm from Obama's fellow Democrats , however, who
lined up to pan the president's proposal to push the trade agenda forward . No problem, said a White House aide several
days later, the President will steamroll them. The politics of trade have long broken down along fairly strict partisan lines; pro-business
Republicans are for trade and pro-labor Democrats are against it. Freed from narrow constituent politics, however, Democrats in the
White House have pushed for greater openness to trade, largely because expanding trade is a necessarily
an important part of the foreign policy agenda of any president interested in maintaining the United
States global leadership. President Clinton famously passed the North American Free Trade Agreement and permanent normal trade
relations with China. So it isnt surprising that Obama views new trade deals as central to his foreign policy
legacy. Still, getting new trade agreements through Congress is
sympathetic news stories than the fact that a new trade deal has added a few hundred
dollars to the purchasing power of the average family. The way policymakers talk about trade is often
disingenuous. Trade agreements these days are about reducing barriers to trade in a supply chain that can wend through many countries.
They are about standardizing approaches to information gathering and policy making. They set rules for economic governance that limit
discrimination and encourage greater opportunities for an increased number and kind of enterprises in the economy. And importantly, they set the
rules for trade in services, which is the forgotten giant in international trade. This is all wonky stuff, so when forced to talk
about trade without putting its audience to sleep, the administration finds itself reverting to simplification .
When in doubt, Obama and the administration, like previous Republican and Democratic administrations, talk about how trade agreements are
about exports, as the president did when he proposed in his 2010 State of the Union speech to double U.S. exports in five years. We didnt come
close, but it was a worthy aspiration. The global economy and the role of the United States in that economy has
changed dramatically since the 1950s, but the politics of trade is still very much grounded in that longago epoch. Back then, you made a finished product in one country and sold it to another. The way trade data is gathered still assumes a 1950s
approach; the country in which a products assembly is finalized gets full credit for the value of that product. So China gets full credit for the
value of an iPhone it assembles from component parts made in other countries, including the lions share of the value that iPhone represents: its
design, which really never left Cupertino, Calif. The enduring, alluring image of the good (manufacturing) job at good
wages from the days in the 1950s in which manufacturing employed 60 percent of American workers, is tough to shake
Barack Obama
first Pacific president. Prime Minister Shinzo Abe has pledged that Japan is not now and will never be a tier-two country. Before they
meet in Tokyo this month, the two leaders have a unique opportunity to prove these words true by
resolving their differences over the Trans-Pacific Partnership (TPP). The 12 Asia-Pacific economies in the TPP negotiations are working
toward a comprehensive, high-standard, 21st century trade agreement. A TPP deal among a group of countries representing some 40 percent of
the world economy would give a significant boost to global growth and jobs and help shape the rules of the international trading system for years
to come. The United States and Japan are by far the largest participants in TPP, accounting for three-quarters of the groups economic heft. A TPP
deal would effectively amount to a bilateral free trade agreement a prize that has eluded the two countries for decades as they have sparred over
trade and, more recently, pursued FTAs with other countries. The
not be higher
. First, the economic benefits of a successful TPP agreement would be substantial. The Peterson Institute for
International Economics has estimated the annual income gains to the United States and Japan by 2025 at $76.6 billion and $104.6 billion,
respectively. Second, both countries have a shared interest in updating and upholding the rules of international trade and investment to meet 21st
century realities. Washington and Tokyo have long been champions of intellectual property rights (IPR) protection, strong labor and
environmental standards, and transparent regulatory practices. Through TPP, they have a chance not only to strengthen global rules in these areas,
but also to create disciplines on new issues such as digital commerce and state-owned enterprises (SOEs). Finally, TPP has enormous strategic
significance for both countries. It would strengthen the U.S.-Japan alliance, embed the United States more deeply in the Asia-Pacific region, and
underscore American and Japanese leadership in the region. By setting the gold standard for other major trade negotiations, including the
Transatlantic Trade and Investment Partnership, as well as multilateral talks in Geneva, it would also reinforce the two countries leadership on
the global stage. The TPP negotiations have been slow going, with over 20 rounds and several missed deadlines since the talks were launched
four years ago. Substantial progress has been made across most of the agreements 29 chapters, but differences remain on IPR protection, stateowned enterprises disciplines, environmental standards, and market access. One of the biggest remaining issues of importance to most countries
formidable agriculture lobby and an array of pressing policy challenges, from restarting nuclear power to carrying out structural reform under his
said. "Workers refused to shake my hand because they said, 'Why should I
shake the hand of somebody that let them ship my jobs overseas?' That's a formative experience." But even
though Democrats have historically opposed free trade agreements , it's still
shocking that President Obama may not be able to get enough of them to vote
just to get to a bill on which he has spent so much political capital. Obama has
emphasized trade from this year's State of the Union address to Friday's stop at the Nike
headquarters in Oregon. He's cornered sophomore Democratic
representatives, showered them with flights on Air Force One,
and promised to campaign for them , according to The New York Times. The U.S. Trade
Representative claims to have held nearly 1,700 congressional briefings on
TPP over the past five years, and even set up an office in the Capitol Visitor Center where members and staff
can read the draft language of the agreements. And yet it s till might not be enough.
" We'll see whether he can produce them ," said Senate Majority Whip John
Cornyn of the president's ability to garner the votes of his fellow Democrats. "We're not
going to renegotiate how this is going to be taken up. They'll have a chance to have a vote to get on the underlying bill that will then produce a
negotiation on the overall legislation. But it's
Obama PC key to congressional TPP passage vital to sway votes and overcome
intense political resistance, fight will be huge
Fulton 14. [Deirdre, Common Dreams staff writer, "Obama ready to defy base in order to advance trans-pacific partnership" Mint Press
News 12/5/14 -- www.mintpressnews.com/obama-ready-defy-base-order-advance-trans-pacific-partnership/199643/]
President Barack Obama
respect to trade, we hope to be able to not simply finalize an agreement with the various
parties in the Trans-Pacific Partnership, but also to be able to explain it to the public, and to engage
in all the stakeholders and to publicly engage with the critics, because I think some of the
criticism of what weve been doing on the Trans-Pacific Partnership is groups fighting the last war as
opposed to looking forward, Obama said, referring to trade deals such as NAFTA that have been
strongly opposed by the same constituencies. Those who oppose these trade deals ironically are accepting a
going to have to engage directly
with our friends in labor and our environmental organizations and try to get from them why it is that they
think that. U.S. Senator Orrin Hatch (R-Utah), who helped introduce Fast Track legislation earlier this year that would hand over the
power to negotiate trade agreements from Congress to the president, praised Obamas remarks : This is long overdue, he said.
The presidents influence , particularly among members of his
status quo that is more damaging to American workers, he continued. And Im
Democrats into a defensive crouch on trade, threatening to punish members who defy them by
withholding campaign funds and help from grassroots activists. Union bosses, populist Democrats and some populist
Republicans crowed with triumph after Fridays votes, saying that TPA had to be stopped to prevent more jobs from being outsourced to
Asia, andin the words of Richard Trumka, the president of the vast AFL-CIO unionto send a message that our government belongs not to the highest
corporate bidders but to the working people who make our country run. Opponents of Mr Obamas plans for global trade have no trouble
painting a picture of how they would like the world to function. Mr Trumka says that working America wants fair wages, safe working conditions and a real
opportunity to compete in the global economy. Mrs Pelosi told House colleagues that: Whatever the deal is with other countries, we want a better deal for Americas
workers. Opponents do not offer concrete suggestions about how America might unilaterally achieve much more favourable conditions for its workers in an age of
intense global competition. They are conspicuously uninterested in trying to recruit foreign governments as allies. Instead they attack
Mr Obama for
failing to sue foreign governments often enough over their local environmental and labour standards.
They accuse previous trade pacts of hollowing out American manufacturing (though as trade defenders note, America has
no free-trade deal with China, and that did nothing to slow Chinas rise as an export powerhouse). Above all, they scorn the argument that
lowering barriers to trade might be to the benefit of a large, rich, innovative country such as America. The irony is thatin
presidential elections at leastDemocrats rely increasingly on the votes from Drawbridge Down bits of
America to win. The Obama coalition that handed the White House to Democrats in 2008 and 2012 is
built on groups whose members stand out in opinion polls for their confidence that free trade helps the
country more than it hurts it, such as college graduates and non-whites. Meanwhile Democrats have already lost many of the blue-collar white voters
who are most sceptical of trade (and whose relative weight in the electorate goes down with each passing year). Alas, in congressional elections
those same shifting demographic forces work differently. Non-whites and other Obama fans, such as the
young, rarely vote in non-presidential contests, leaving Republicans to pick up blue-collar white districts
that once elected centrist Democrats. That has left the Democratic Party smaller and more uniformly leftwing, which helps to explain why todays House members are taking such a sceptical
line on trade with Asia . Barack Obama faces a showdown with his party
over trade Republican leaders in the House have effectively given Mr Obama three days to persuade a few more of his
members to back him. By his somewhat chilly standards the president has already been on a charm
offensive with House Democrats for weeks, flying chosen members on Air Force One and even dropping in on the annual congressional
baseball game on June 11th. Mr Obama has promised to campaign for any members
who face rebellions in their home districts as a result of
backing him on trade . That promise has less potency than it once did. Meanwhile Mrs Pelosi is demanding that Republicans bribe
Democratic members to support TPA and TAA (which pass together in a single bill, for procedural reasons, to avoid a conflict with the bill already passed by the
Senate). In a letter to her members, Mrs Pelosi says the prospects of a trade bill passing would be greatly improved if Republicans were to support a big package of
federal funding for highways and other transportation infrastructure. It is unclear whether Mrs Pelosi is offering a lifeline by suggesting this price for her help: many
Republicans may find her intervention deeply provocative. A Democratic member of Congress thinks there is a "decent" chance the trade measures could still be
revived, not least because business and pro-trade lobbies now know how important TAA is to getting a deal done, and will push Republicans harder to back it.
Asian allies could be forgiven for watching this debate with despair, as Mr Obamas grand strategy for
rebalancing Americas economic and strategic focus towards the Pacific region is bogged down by rows about
crumbling interstate bridges. China is not one of the 12 countries in the TPP pact, and Chinese leaders would love to
think that Americas democracy is too dysfunctional to offer Asia an alternative model of economic
governance. Congress does not have long to prove foreign friends and rivals wrong.
Obama using all available PC on TPP now, thats key to passage - its his top
political priority
Kane, 6/12 -- Paul, Covers White House and Politics for Washington Post, Washington Post,
http://www.washingtonpost.com/politics/president-obama-is-all-in-on-trade-sees-it-as-a-cornerstone-of-hislegacy/2015/06/12/32b6dce8-1073-11e5-a0dc-2b6f404ff5cf_story.html
Fridays setback dimmed hopes
at the White House that Obama will be able to complete the Trans-Pacific Partnership (TPP),
a sweeping free-trade and regulatory pact that he has called central to his economic
agenda at home and his foreign-policy strategy in Asia. Obamas loss came
after a months-long lobbying blitz in which the president invested significant
personal credibility and political capital . Republican leaders, who had backed the presidents
trade initiative, pleaded
with their colleagues to support the deal or risk watching the United States lose
economic ground in Asia. Afterward, GOP leaders said the battle was not over , but they made
free trade is "tough politics " among some lawmakers because many
Americans feel their wages and income have stagnated as a result of foreign trade. He said his argument to
U.S. labor unions and environmental groups concerned about the impact of free-trade agreements is that
new trade deals, such as the 12-country Trans-Pacific Partnership, will help raise labor and environmental
standards. "Part of my argument to Democrats is: don't fight the last war ," Obama told the Business Roundtable,
noting that companies wanting to move offshore for cheaper labor had probably already done so. Fifty percent of Americans think trade destroys
jobs and 45 percent think it lowers wages, according to a poll from the Pew Research Center. Obama said anti-trade sentiment had
of the package in the coming days. Earnest said that the Senate approved the fast-track
legislation last month after initially voting to block it. The silver lining for Obama and his unusual Republican allies is that the balance of the trade package narrowly
won support. The House voted 219 to 211 to approve fast-track, also known as trade promotion authority, which had been expected to be the most crucial vote. On that
vote, 219 to 211, 28 Democrats joined 191 Republicans in supporting the president. But because House leaders split the bill into several pieces, approval of the worker
assistance program known as trade adjustment assistance, or TAA is needed to advance fast-track. The problem for Obama is that he
must
still get enough Democratic votes to entice a sufficient number of Republicans to vote for TAA, which they
generally do not support. In his first visit to the Democratic caucus in two years, Obama pleaded for their support, particularly on a bill that they would otherwise back
on the merits. Play it straight, Obama said, according to several attendees. The president recounted his previous efforts on behalf of workers and the environment to
discussion, Pelosi told the president she was leaning no on the trade assistance vote at a meeting before Obama went before the entire Democratic caucus. Several
hours later, Pelosi walked onto the chambers floor and indicated she would do the opposite of what Obama had asked her and her colleagues to do vote against a
program she otherwise supports in order to obstruct the overall package. Pelosi said she still thinks there is a path to yes on fast-track authority, as she has said for
months, but that it must be lengthened in order to address sinkholes. That ended days of private deliberations for Pelosi. She personally negotiated the precise
fixes to the TAA bill with House Speaker John A. Boehner (R-Ohio), who then set up the series of votes to take place exactly as she had asked. Exiting the Obama
meeting, some of Pelosis closest lieutenants thought she would support the worker assistance program and nudge it to passage. She would not have gone through the
efforts these heroic efforts to get this deal and then just to vote against this, Rep. Steve Israel (D-N.Y.), an appointed member of her leadership team, said
before the key vote. Im voting for trade adjustment assistance. I believe that the vast majority of leadership will be voting for trade adjustment assistance. Israel,
Rep. James E. Clyburn (D-S.C.) and House Minority Whip Steny H. Hoyer (D-Md.) were the only members of leadership to support the president on the TAA vote.
After Pelosi delivered the final blow to the legislation, she sent a letter to all Democrats saying that stopping the fast-track bill was their way to leverage support for a
massive infrastructure bill. However, in
a sign of their disjointed posture, other Democrats had other ideas about
what they were trying to get by stopping the trade package. The real issue
here is TPP, and this is an effort to get TPP on the right track, said Rep. Sander M. Levin (Mich.), the
ranking Democrat on the Ways and Means Committee. Levin said the focus of these next days would be to force the Obama
administration to reopen portions of the negotiations with Pacific Rim nations on worker organizing rights and
currency manipulation.
PC Key Empirics
Capital key to congressional TPP passage empirics.
Miller and Goodman 15. [Scott, senior adviser and holds the William M. Scholl Chair in International Business at CSIS,
Matthew, William E. Simon Chair in Political Economy at CSIS, "Conclude the Trans-Pacific Partnership" CSIS -- January -csis.org/files/publication/141223_Green_Pivot_Web.pdf]
What is needed to conclude TPP in 2015? For the United States, trade agreements enter into effect once
the
U.S. Congress passes legislation to implement the provisions negotiated by the executive branch . That
action is the end of a process that begins with building domestic political support
for the policy. Advocates in the business community and elsewhere have a role, but if history is any guide
presidential leadership is fundamental to making the case to the public and
always
that are
a part of trade policy. Immediately
following the November midterm elections, incoming Senate Majority Leader Mitch McConnell (R-KY) and Speaker John Boehner (R-OH)
made it clear that trade agreements like TPP were an area of potential cooperation with the president. During
President Obamas first term, the implementing bills for free-trade agreements (FTAs) with Colombia, Panama, and South Korea passed the
Republican-controlled House by comfortable margins, with over 200 Republicans and 3060 Democrats voting in favor. This 2011 success
gave TPP talks momentum, with Canada, Mexico, and Japan deciding to join the talks shortly after the FTAs passed. Voting patterns
indicate that trade policy remains an issue that divides Democrats and unites Republicans. The president
must actively manage his partys politics while cooperating with
Republican majorities in Congress who will provide the majority of the votes. Its
never easy to advance an issue that divides your usual allies and unites your usual opponents, but
there is no alternative scenario. In short, the next step belongs to the president. He must engage the public
on the issue, underscoring its importance to the economy and, more broadly, the U.S. role in the world .
And he must manage the delicate relations with Congress,
United States.
and the Republican Congress. We agree. Under the U.S. Constitution, Congress has authority over
trade. But the active direction and use of that authority depends on an energetic
executive , in partnership with Congress. According to a recent Pew Research survey, 66% of Americans
believe greater U.S. involvement in the global economy is a good thing, with only 25% thinking it is bad. The
Trans-Pacific Partnership (TPP) trade agreement is a good thing in the eyes of 55% of Americans, versus 25% who consider it bad; the
Transatlantic Trade and Investment Partnership (TTIP) scores 53% good and 20% bad. These inclinations offer opportunity. Prof.
Richard Neustadt explained to President John F. Kennedy that the presidency relied on the
power to persuade. Its time for Mr. Obama to persuade on
trade . He must make use of the convening power of the executive to bolster
his advocacy . His administration must work closely with Congress to listen,
explain, address problems and cut deals .
PC and horsetrading uniquely key on congressional trade deal votes its ALWAYS
the critical factor
Feehery, 6/10 -- John Feehery is president of QGA Public Affairs and a former spokesman for then-House Speaker Dennis Hastert,
Wall Street Journal, 6/10/15, http://blogs.wsj.com/washwire/2015/06/10/why-trade-promotion-bill-is-so-hard-to-pass-through-congress/
Passing trade legislation is always controversial . One mans job-creating trade agreement
spells the end of another mans job. Mr. Obama waited until the last two years of his presidency to push for
fast track, when he didnt have to run again in the face of angry union opposition. It helped that the
Republicans had seized the reins of power in the Senate and are largely sympathetic to the arguments of free
traders. Trade is much more complex than broadly understood. Every country with which we trade has laws designed to help
domestic manufacturers. There are tax provisions and subsidies and favorable regulatory breaks and no-interest loans and a list of other things that foreign
governments do to help their workers. We do some of that stuff ourselves. Making
to see the legislative process work. To the casual observer, this might seem like the usual sausage
making. But to those in the middle of the scrum, all of this horse-trading makes the sausage
taste better to their constituents.
PC and horsetrading on unrelated political deals key uniquely swings trade votes,
overcomes opposition and outweighs ideology its ALWAYS the decisive factor
Becker, 6/12 ISAAC STANLEY-BECKER, Wall Street Journal, 6/12/15,
http://blogs.wsj.com/washwire/2015/06/12/fast-track-votes-have-long-difficult-history/
And Thursday, ahead of a vote on granting President Barack Obama so-called fast-track negotiating authority, lawmakers
Clinton administrations early success, Mr. Kantor said, stemmed from the priority the
to trade and cut deals, said the official. In a way its frustrating because its not about the
merits. Its about horse-trading. Today there are rules that bar some of the lucrative goodies, known as
earmarks. Mr. Obama
has used personal appeals in aiming to sway Democratic lawmakers , including members
of the moderate, pro-growth New Democrat Coalition and the Congressional Black Caucus . Four House
Democrats whove pledged their support traveled on Air Force One to the Group of Seven Summit in Germany, touting
international economic opportunities.
IT TAKES TWO TO TANGO ON TRADE : Incoming Senate Majority Leader Mitch McConnell repeated
on Tuesday that he wants to work with the White House to pass trade legislation, a statement perhaps more notable this time
around because it came amid Republican anger over President Barack Obamas action on immigration. Thats my first choice, to look for the things that we actually
agree on, if there are any, McConnell (R- Ky.) said at the Wall Street Journals CEO Council meeting. At least on
strained relations between the president and his party, came with the help of longtime
Republican adversaries. Many Democrats oppose the coming Trans-Pacific
Partnership and similar trade deals because they believe the pacts will sacrifice U.S. jobs to cheaper
overseas competition. Arguing that the trade deal is vital to countering China's rising economic power ,
Obama overcame vehement opposition from big trade unions
and fellow Democrats by forging a rare alliance with House Speaker John A. Boehner (R-Ohio) and Senate Majority
Leader Mitch McConnell (R-Ky). The political turnaround followed intense White
House lobbying and a heavy dose of backroom deal-making to
secure the final votes needed . This has been a long and rather twisted path to where
we are today, but it's a very, very important accomplishment for the country, McConnell said. America is back in the trade
business. The so-called fast-track bill cleared its final procedural hurdle Tuesday in the Senate by a 60-37 vote.
There wasn't
a single vote to spare in overcoming a Democratic-led filibuster. Thirteen Democrats joined the GOP
to advance the measure, and five Republicans bucked the Senate leader and voted no. Final Senate passage is expected Wednesday,
sending the measure to the president's desk. Within reach is an opportunity to shape tomorrow's global economy so that
it reflects both our values and our interests, said U.S. Trade Representative Michael Froman.
Fast track, also known as trade promotion authority, would allow the
president to assure potential trade partners that the deals they negotiate with the U.S. will be presented to Congress for a yes-or-no vote without
amendment. Trade is a major driver of California's economy, so the ultimate outcome of the Pacific deal will affect many businesses and workers
in the state. California is home to the nation's busiest ports and a big exporter of electronics, farm products, machinery and many other goods and
services much of that going to Pacific Rim countries, including those involved in the negotiations.
funds for employees who lose their jobs as a result of trade. That measure, a longtime Democratic priority that most Republicans oppose, is
expected to have a vote in the Senate on Wednesday and in the House on Thursday. It's a pretty big victory for the
administration, for Obama a victory for pragmatism, said David Bach, senior associate dean at the Yale
School of Management, noting that the political cost to the president of splitting
with his own party was worth the potential gains of U.S. leadership in the Pacific . The fact that Obama was able to
work with Speaker Boehner and come up with a backup plan is not the kind of thing people would have perhaps expected in this climate of ultrapartisanship, Bach said. It keeps alive the potential legacy of his pivot to Asia . Others, though, believe the
Princeton University history professor. This vote and the decision to work around House Democrats will
aggravate the tensions that already exist with liberals. There isn't enough time left
in his presidency to really see the impact the trade pact will have, but this
corporations and result in more U.S. factory closures. It's a great day for the big-money interests, not a great day for working
families, said Sen. Bernie Sanders (I-Vt.), who is running against Clinton for the Democratic nomination for president. The politics of the
trade vote also splintered Republicans , especially conservatives who were loath to
track used quite a few times. There was, in fact, a time when Trade Promotion Authority was commonly referred to as fast-track.
Now only TPA opponents use that term. They want the American people to believe that, under TPA, trade
agreements come to Congress and are passed in the blink of an eye . Sometimes they
use the term rubber stamp , as if, under TPA, Congress wielding ultimate
authority over a trade agreement the power to reject it
entirely is a mere administrative act. Mr. President, there is a reason the term fast track isnt
used anymore. Its because those who are being truly honest know that the process is
anything but fast. I think it would be helpful for me to walk through the entire process that Congress must
undertake before rendering a final judgment on a trade agreement to show how thoroughly
these agreements are vetted before they ever receive a vote .
Before I do though, I will note for my colleagues that this bill adds more transparency, notice, and
consultation requirements than any TPA bill before it . This bill
guarantees that Congress has all the information we need to render
an informed up-or-down verdict on any trade agreement
negotiated using the procedures in this bill.
TPA just guarantees a vote, not congressional passage their claims disregard
LONG LAUNDRY LIST of checks and procedural requirements
Hatch, 15 -- Orrin, US Senator, 5/19, http://www.hatch.senate.gov/public/index.cfm/releases?ID=bfb3e6186f46-4d34-a89e-3e60838774af
Once a bill implementing a trade agreement is formally submitted to Congress, a clock for consideration
of that bill starts. This clock gives Congress 90 days in session to consider and vote on the bill . As everyone
here knows, 90 legislative days takes a lot longer than 90 calendar days . Mr. President, when I hear my colleagues talk
about fast track, I think this is where they start the clock. They are disregarding the years of
oversight and consultations that occur during trade negotiations. They are
ignoring the many months of Congressional consideration of
trade legislation that occurs before the President ever formally submits that
legislation to Congress. They are d iscounting that, by this point in the process, Congress has
held hearings on the agreement, received views from the
public, and extensively reviewed the agreement and the
implementing legislation through informal markups. Calling this part of the process
fast track is like skipping to the end of a book and saying the
author didnt develop the plot. As I said, even here at the end of the process, the bill
provides more than three months for hearings, Committee
action, floor debate, and votes. Sometimes I think that only a United States Senator could
argue that more than three months to formally consider legislation legislation that has already been
thoroughly debated, vetted, and reviewed is making decisions too fast. Mr. President, when Congress votes
on an implementing bill, it is only after years of oversight, and months
of formal review. So I have to ask: Does this process sound fast to you? If TPA isnt fast, then what does TPA
do? Put simply, TPA guarantees a vote . TPA says to the world that when they sign an
agreement with the United States, Congress promises to say yes or no to THAT agreement. And
notification and consultation requirements, only after he has provided the required reports, and only after
he has made the agreement available to the American people, may he finally sign the agreement. The
process this bill requires before an agreement is even signed is obviously quite complex, full of checks
and balances , and provides unprecedented transparency for the American public,
Hatch said.
TPA doesnt guarantee trade deal approvals multiple checks and new informal
mark-up requirements that occur before TPA procedures kick in mean their ev
doesnt apply
Hatch, 15 -- Orrin, US Senator, 5/19, http://www.hatch.senate.gov/public/index.cfm/releases?ID=bfb3e6186f46-4d34-a89e-3e60838774af
Sixty days after signing the agreement, the President must provide Congress a description of changes to
U.S. law he considers necessary. This step gives Congress time to begin considering what
will be included in the legislation to implement the trade agreement. This is also the time when the
Finance Committee holds open hearings on the trade agreement in order to gather the views of the administration and the
public. Following these hearings, one of the most important steps in this entire process
occurs: the so-called informal markup. The informal markup is not always well understood, so I will take a minute to describe it. The
informal markup occurs before the President formally submits the trade
agreement to Congress. As with any markup of legislation, the Committee reviews and discusses the
agreement and implementing legislation, has the opportunity to question witnesses about the agreement,
and can amend the legislation. In the event of amendments, the Senate can proceed to a
mock conference with the House to unify the legislation. The practice of the informal markup
needs in time to conduct a thorough markup. Only at this point may the
President formally submit legislation implementing a trade agreement to
Congress. And only at this point do the TPA procedures , first established in the Trade
Act of 1974, kick in.
TPP passage not guaranteed TPA gives congress more power on trade deal, not
less
Weisman, 6/23 Jonathan, Economic Policy Reporter @ NYT, 6/23/15,
http://www.nytimes.com/2015/06/24/us/politics/senate-vote-on-trade-bill.html
Only one senator, Ted Cruz, Republican of Texas, changed his vote from last month. In April, Mr. Cruz wrote an article with Representative Paul D. Ryan, Republican
of Wisconsin, extolling
the trade promotion bill for giving Congress more power over
future trade accords . Under the trade promotion bill, such accords could not be considered by Congress for four
months after completion, and for two of those months, the
those negotiations are. Specifically this has to happen three months before the President can start negotiating. Thats three months for Congress to
consult on and shape the negotiations before they even begin. Congresss oversight continues as the negotiations advance .
This bill requires the United States Trade Representative to continuously consult with Senate
Finance Committee and any other Senate committee with jurisdiction over subject matter potentially affected by a trade agreement.
Moreover, USTR must, upon request, meet with any member of Congress to consult on the negotiations, including
providing classified negotiating text. The bill also establishes panels to oversee the trade negotiations. These panels
the Senate Advisory Group on Negotiations and the Designated Congressional Advisers consult with and advise the USTR on the formulation
of negotiating positions and strategies. Under the bill, members of these panels will be accredited advisers to trade negotiating sessions involving
Congress on the potential costs and benefits the agreement will have on the U.S. economy, specific economic sectors,
and American workers. I want to focus on the next step required by this bill, because it is a new requirement,
never before included in TPA. Sixty days before the President can sign any trade agreement, he must
publish the full text of the agreement on the USTR website so that the public can see it. This
ensures an unprecedented level of transparency for the American people and
gives our constituents the material and time they need to inform us of their views. Only after the President
has met these notification and consultation requirements, only after he has provided the required reports,
and only after he has made the agreement available to the American people, may he finally sign the
agreement. Mr. President, the process this bill requires before an agreement is even signed is obviously
Dems Key
Dems key to TPP Obama must spend PC to swing votes
WSJ 1-22-15. blogs.wsj.com/washwire/2015/01/22/capital-journal-battles-over-iran-sanctionsgop-governors-trumpet-successes-focus-turns-to-middle-class-angst/
OBAMA SEEKS TO WOO DEMOCRATS ON TRADE DEALS: President Obamas push for a new round of
trade deals looks set to hinge on a small swing contingent of House Democratic
lawmakers, testing the presidents ability to woo wary members of
his own party. To do that, the White House has deployed cabinet secretaries and set up a war room to promote fast-track trade legislation on Capitol Hill.
The White House hopes to move ahead on a trade deal under negotiation with Japan and other Pacific
nations, as well as a deal officials are eyeing with the European Union . William Mauldin and Siobhan Hughes report.
GOP Key
GOP vital to passage of new free trade deals Obama PC key to swing their votes
Tankersley, 6/12 -- Jim Tankersley, Economic Policy Correspondent, The Washington Post,
Washington Post, 6/12/15,
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/06/12/who-obama-needs-most-towin-on-trade-now/
Who Obama needs most to win on trade now After a pair of dramatic votes
in the House left President Obama's trade agenda dangling by a thread on Friday, most of the attention turned to
Democrats: They had bucked their president in big numbers, despite a last-minute, in-person appeal. That's true. It is
also not very surprising, in the context of recent history. The bigger historical surprise was how many
Republicans opposed a landmark bill on free trade. About three-quarters of the House GOP sided with Obama on so-called "fast track"
trade promotion authority. You have to go back to a pair of votes under Bill Clinton -- NAFTA in 1993 and a failed fast-track push in
1998 -- to find the last time such a small share of Republicans supported a major trade bill . Two-fifths of House
Democrats backed Clinton on NAFTA. That's the high-water mark for the party's support for major trade deals in the House in the last two decades. When only
15 percent of House Dems backed Obama on Friday, they weren't on the low or high end of that historical
spectrum. They were about in the middle:2 Obama effectively needed the House to approve two things Friday: a provision to spend money
helping some workers after their jobs were hurt by freer trade, and so-called "fast-track" trade authority that would allow the president to send trade deals to Congress
for an up-or-down vote. The first vote failed overwhelmingly -- only a third of Republicans and a fifth of Democrats supported it. The broader measure squeaked by,
though. There's
a lot of attention, and rightly so, on how few Democrats Obama brought along for either vote. (Especially
to note, though, that House Democrats have shown little appetite for
trade bills since NAFTA. About a third of them voted for the Panama and Korea agreements in 2011. But
fewer than 1 in 10 of them backed the Central American Free Trade Agreement under President Bush in 2004, and a
slightly smaller share of them voted to give trade promotion authority to Bush than they just did to Obama. House Republicans, on the other
hand, had hovered at or above 90 percent of support for major trade bills since 1998,
including previous bills under Obama. But some conservative activists have opposed this trade push, on a
variety of grounds, contributing to the GOP defections this time. For Obama's trade agenda to progress, he needs the workerreimbursement provision - something conservatives have tended to oppose, historically - to pass on a re-vote, likely next week. That vote is now the
proxy vote for "should the trade agenda move ahead under Obama ?" The president would certainly like
more Democrats to join his cause for it. But to win, he probably needs a lot more support
when you compare him to Clinton in 1993.) It's also fair
Trade -- Can Obama get it done? The day after the 2014 election, Senate Republican Leader Mitch McConnell was
asked what kind of proposals his new majority could work on with President Obama. Trade agreements,
McConnell said, adding, The President and I were just talking about that before I came over here." And when Obama called on Congress
during his State of the Union speech this month to pass legislation supporting new trade agreements, it was one of the few subjects that
did not raise Republican ire. It did not meet with much enthusiasm from Obama's fellow Democrats , however, who
lined up to pan the president's proposal to push the trade agenda forward . No problem, said a White House aide several
days later, the President will steamroll them. The politics of trade have long broken down along fairly strict partisan lines; pro-business
Republicans are for trade and pro-labor Democrats are against it. Freed from narrow constituent politics, however, Democrats in the
White House have pushed for greater openness to trade, largely because expanding trade is a necessarily
an important part of the foreign policy agenda of any president interested in maintaining the United
States global leadership. President Clinton famously passed the North American Free Trade Agreement and permanent normal trade
relations with China. So it isnt surprising that Obama views new trade deals as central to his foreign policy
legacy. Still, getting new trade agreements through Congress is
sympathetic news stories than the fact that a new trade deal has added a few hundred
dollars to the purchasing power of the average family. The way policymakers talk about trade is often
disingenuous. Trade agreements these days are about reducing barriers to trade in a supply chain that can wend through many countries.
They are about standardizing approaches to information gathering and policy making. They set rules for economic governance that limit
discrimination and encourage greater opportunities for an increased number and kind of enterprises in the economy. And importantly, they set the
rules for trade in services, which is the forgotten giant in international trade. This is all wonky stuff, so when forced to talk
about trade without putting its audience to sleep, the administration finds itself reverting to simplification .
When in doubt, Obama and the administration, like previous Republican and Democratic administrations, talk about how trade agreements are
about exports, as the president did when he proposed in his 2010 State of the Union speech to double U.S. exports in five years. We didnt come
global economy and the role of the United States in that economy has
changed dramatically since the 1950s, but the politics of trade is still very much grounded in that longago epoch. Back then, you made a finished product in one country and sold it to another. The way trade data is gathered still assumes a 1950s
approach; the country in which a products assembly is finalized gets full credit for the value of that product. So China gets full credit for the
value of an iPhone it assembles from component parts made in other countries, including the lions share of the value that iPhone represents: its
design, which really never left Cupertino, Calif. The enduring, alluring image of the good (manufacturing) job at good
wages from the days in the 1950s in which manufacturing employed 60 percent of American workers, is tough to shake
PC key both dems and GOP are important must keep both on board even Protrade republicans could bail post TPA passage and try to hold out for next president
Freeman, 15 -- Charles W. Freeman III, senior fellow in the China Center at Brookings. As an international principal at
Forbes-Tate, he directs the firms global efforts. He advises companies, financial institutions, and associations on strategy,
regulatory issues, and trade policy matters overseas, with particular attention to China and other Asian markets. Freeman
previously served as assistant U.S. trade representative for China affairs. In his role as the United States chief China trade
negotiator, he helped to shape U.S. trade policy toward China, as well as Taiwan, Hong Kong, Macao, and Mongolia. Freeman
also oversaw U.S. efforts to integrate China into the World Trade Organization. Earlier in his government career, he served as
legislative counsel for international affairs for Senator Frank Murkowski of Alaska. After leaving government, Freeman has
advised a wide array of firms and associations on Chinese and East Asian business and regulatory matters. In addition to his work
in private practice, Freeman has held the chair in China studies at the Center for Strategic and International Studies. He has been
a frequent commentator on U.S.-China relations and Chinese economic issues and has published extensively on Chinese trade
and regulatory matters. Freeman received his Juris Doctor from the Boston University School of Law and his bachelors in Asian
studies with a concentration in economics from Tufts University. He studied Chinese economic policymaking at Fudan
University in Shanghai and Mandarin Chinese at the Taipei Language Institute. He is a director of Harding Loevner Funds and
the National Committee for U.S.-China Relations, Washington Examiner, 2/2/15, http://www.washingtonexaminer.com/tradecan-obama-get-it-done/article/2559487
If the Obama administration will find it difficult to appease the Left , a TPP that
seems focused more on left-of-center concerns than on opening markets will undermine the
make an already fraught process that much riskier . I hope, said one Republican trade
staffer, theyre smarter than that. Even beyond the TPP countries, other eyes are watching goings-on in Washington carefully. During the State
of the Union speech, the president raised the specter of competition with China as a reason to pass trade
legislation. "China wants to write the rules for the world's fastest-growing region, he said. It may have been a message intended
only for the Hill fodder for the China paranoia that sometimes drives legislation . But the
administration has for years been trying to convince China that the TPP and the pivot to Asia were not about containing Chinas rise. The State
of the Union speech complicated that message, and official and unofficial Chinese reactions were blistering. The White House will have to
smooth over those ruffled feathers to manage that most important strategic relationship, even if it is very likely that anti-China rhetoric
Momentum behind a TPA bill could pick up quickly. Rumors that the Senate Finance and House
Ways & Means Committees are moving to mark up bills in February and March could begin to crank up the political machinery. And that
will
2015 Key
Domestic Political calculations determine congressional TPP outcome 2015 is key
Hogan Lovells Yeutter, international trade and investment firm senior advisor, 2-2-15
[Amb Clayton, TPP now, not next year http://thehill.com/blogs/congress-blog/economybudget/231311-tpp-now-not-next-year]
. So why all the fuss right now? Because
U.S. that will close soon . Presidential campaigns typically produce far more
demagoguery than wisdom where trade policy is concerned .
Notwithstanding all the good work that has already been done by TPP negotiators, not one of
them will wish to subject a TPP agreement to the bombast of
our presidential campaigns. So we need to get this done; the TPP window
is 2015, not 2016
. Step one is fast track authority so that a final agreement will be submitted, without amendment, to an up or down vote in Congress. The other 11 TPP participants are
not about to submit their best offers to the U.S. until and unless we either have Trade Promotion Authority (TPA or fast track) or can persuasively assert that such authority clearly is on the way. Otherwise there is a risk Congress
could change the deal, an outcome the other participating nations would not accept. Therefore, one of the first bills to emerge from deliberations of the Senate Finance and House Ways & Means Committees should be fast track, and
Congress needs to get it to the presidents desk soon. Those who dislike trade agreements will vehemently oppose fast track, but proponents must win that political battle. Delaying fast track will simply delay final offers the other 11
If the U.S. is able to enact TPA legislation during the first quarter of 2015,
negotiators will have a reasonably good chance of quickly wrapping up TPP . That will not be easy, for time is of
TPP countries are prepared to grant to the U.S.; if fast track is not approved well never see those offers.
the essence . Once finalized, the agreement will need to be translated into a host of languages,
scrubbed by the lawyers, implementing legislation will need to be agreed between the administration and
the Congressional trade committees, the U.S. International Trade Commission will need to report to Congress on the probable economic impact of the agreement here in the U.S., and
the Congressional trade committees will undoubtedly wish to hold hearings and conduct mock markups
on an agreement of this importance. That all takes time, so lets hope everyone proceeds
expeditiously, and gives TPP the fair hearing it deserves before the political
season gets underway. Some Republican colleagues may ask: Why should we do this,
of my
and give President Obama a legacy on trade that he might not otherwise receive? The answer is that this will be a splendid legacy for everyone Republican and Democrat alike who votes for it. TPP is vital for American business and American agriculture. It will create jobs and keep our
economy dynamic and growing. If we postpone until 2017, there may well be no legacy for anyone. The
opportunity will have been squandered and our grandchildren will be playing by Chinas rules. That
2015 is make or break for TPP domestic politics are crucial, obama must use PC to
sway votes for deal approval in congress
Brown and Oudraat 2-6. [Michael, dean of the Elliott School of Int'l Affairs @ George Washing, Chantal de JOnge Oudraat,
president of Women in International Security, "Trade, power and opportunity" Washington Post -- www.washingtonpost.com/blogs/monkeycage/wp/2015/02/06/trade-partnerships-are-an-opportunity-not-to-be-missed/]
The year ahead will be a window of opportunity for concluding the TPP and TTIP negotiations.
Obama is in his final years in office, which gives him the political immunity he will need to stand up to
domestic opponents of trade pacts mainly in his own Democratic party. The
Republican majorities in both houses of Congress have pro-trade inclinations that, hopefully, will lead to approval of trade
promotion authority. But in 2016, electoral politics will take over in the United States and the
deals in 2015. In Japan, Shinzo Abe won re-election as prime minister in December 2014. This is the best position he is likely to have to stand up to Japans
domestic agricultural interests and conclude a trade agreement. In Germany, Angela Merkel won reelection as chancellor in September 2013. As a popular leader of
the country with Europes largest economy, she is well-positioned to lead the way toward a TTIP agreement. TPP and TTIP
Time crunch pushes Senate to edge of surveillance cliff With just a handful of legislative days left
and a trade battle still on the floor the Senate needs last-minute deal on the PATRIOT Act and transportation law.
The mad dash for Memorial Day is on. Capitol Hill is again barreling toward deadlines on must-pass
legislative items, this time on government surveillance powers and federal money for roads and bridges. The Senate, particularly the GOP,
finds itself in a bind over surveillance , even as the chamber remains bogged
down in a contentious fight over trade thats scrambling party lines and eating
up valuable floor time . Meanwhile, lawmakers are edging closer to a highway funding cliff though a two-month extension unveiled last week
could resolve that tension. Still, it all makes for a hefty to-do list before lawmakers flee Washington for the weeklong Memorial Day recess at the
end of the week. We got too many deadlines and not enough time , said Missouri Sen. Roy Blunt, a member of Senate
Republican leadership. Noting the weeks spent fighting over other measures earlier this year, he
added: Legislative time is hard to get back but well just have to do what has to be done. The
most pressing and complicated hurdle is the stalemate over
provisions of the PATRIOT Act used to authorize the controversial National Security Agency
program that collects Americans phone records. Those provisions are set to lapse at the end of the month. The overwhelming 338-88 House vote last
expiring
week ending the NSAs bulk collection programs though phone companies would still keep the data that could later be tapped in smaller amounts for terrorism investigations puts
is an
important tool if were going to have the maximum opportunity to defend our people here at home, and I dont think the House bill does that, McConnell said of the
NSA program Sunday on ABCs This Week. I think it basically leads us to the end of the program. But McConnell, Senate Intelligence Committee
Chairman Richard Burr (R-N.C.) and other GOP proponents of retaining the NSA bulk collection program are running into resistance from
Democrats and libertarian-leaning Republicans, as well as a bipartisan vow to filibuster even a short-term reauthorization of the PATRIOT Act powers. Policy matters aside,
time or the lack thereof is another major hurdle . McConnell, who sets the floor schedule,
considerable pressure on Senate Majority Leader Mitch McConnell (R-Ky.), who is demanding a straight reauthorization of the current bulk collection methods until 2020. I think it
has to contend with a debate over trade thats expected to drag out through most, if not all, of this week. All 100
senators would need to agree to move off trade and onto surveillance, and liberals have threatened filibusters on trade that would take considerable floor time to resolve. McConnell and other
Senate Republican leaders remained optimistic that the Senate will be able to finish the trade promotion authority measure this week, which would allow President Barack Obama to submit trade
deals directly to Congress for approval without allowing for amendments from lawmakers. Giving Obama the so-called fast-track authority could grease the skids for a deal on the Trans-Pacific
Partnership, a huge 12-country trade pact totaling 40 percent of the worlds economic output. But many Senate
to blunt support
for trade promotion authority in the House, where GOP leaders are a couple of dozen members
need to approve it. Meanwhile, a growing circle of Senate Republicans are airing
concerns about the House surveillance legislation and aligning with McConnell and Burrs more
aggressive stance on government surveillance powers to protect
national security . Among them is Sen. Marco Rubio of Florida, who is running for the GOP presidential nomination on a hawkish
foreign policy platform. Theres some real concerns that havent been really publicized to the extent
they should be in terms of the House bill, said Sen. Dan Coats (R-Ind.), who sits on the Intelligence Committee . I think we need to
buy some time so we have a much better understanding of what we are doing. Sen. Bob Corker (R-
chairman of the Foreign Relations Committee, said recently that he believed the government
wasnt collecting enough data in the fight against terrorism. He said he would prefer another classified
Tenn.),
briefing, like one last week led by top officials from the FBI and NSA. My prediction is, were not going to be able to pass a reauthorization, said Sen. Ron Johnson (R-Wis.), who said he
prefers the straight extension proposed by McConnell and Burr. I think
probably about as good as were gonna have . I think that is unfortunate. Top Senate
Republicans many of whom back the bulk collection of phone records and would
like to see the programs extended until 2020 have strongly
suggested that a short-term reauthorization may be the only option they can support ,
considering the deep divisions within the GOP and the dwindling timeline . McConnell
said Sunday that a two-month extension, which he filed late last week,
effective.
NAFTA 20 years ago. And with trillions of dollars at stake for both the domestic and global economies,
trade could become a signature issue for both Republicans and the president as they look to
claim significant political victories. The temperature is rising , and I think, at least now, we have
President Obama making very direct comments to support the
trade agenda in a way that I hadnt seen in a long while , said Mireya
Solis, a senior fellow and Japan expert at the Brookings Institution. The Trans-Pacific Partnership
agreement, which would cover about 40 percent of the worlds gross domestic product and about a third of global trade, is expected to
get a huge boost from the GOP takeover of the Senate, with Republicans eager to pass legislation that would expedite
congressional approval of that and several other pacts. But the trade promotion authority legislation, which would allow Obama to send the
agreement to lawmakers for an up-or-down vote with no amendments, could also serve as a legislative vehicle for a slew of other trade bills that
have been waiting in the wings, including measures to renew tariff cuts for developing nations, sub-Saharan Africa and U.S. manufacturers, and
to reauthorize the Export-Import Bank. The last time Washington saw even a piece of this kind of trade action was in 2011, when Congress
approved the South Korea, Colombia and Panama free trade deals in rapid succession. The United States is also expected to finish negotiations on
major expansion of an Information Technology Agreement with nearly 80 countries that account for about 90 percent of world technology trade.
The deal, which would eliminate duties on a long list of tech products, came within a hairs breadth of concluding this month, but talks broke
down after China refused to meet other countries demands for concessions on what goods to make duty-free. The White House will also press
forward with the Transatlantic Trade and Investment Partnership between the U.S. and the 28-nation European Union, a deal even bigger than the
TPP, with European Union leaders earlier this month calling for the talks to finish up by the end of 2015. If all of that isnt enough, the U.S. is
also pushing a new Environmental Goods Agreement with 13 other members of the World Trade Organization including China and the EU
that compose about 86 percent of global trade. Talks on a new global services agreement and a bilateral investment treaty with China also will
proceed. Not all of those will get done in 2015, U.S. Trade Representative Michael Froman said. But we hope its a very productive year both
in terms of negotiations and the legislative agenda. Before the biggest trade deals can get done, Obama will need to get lawmakers to give him
the legislative authority to expedite their debate and passage. Also known as fast-track legislation, the Obama-backed TPA bill failed to advance
earlier this year after outgoing Senate Majority Leader Harry Reid (D-Nev.) refused to take it up out of concern that a vote on the bill before the
midterm elections would put Democrats in the politically hazardous position of possibly damaging their support from labor and environmental
groups. Even with the GOP majority in the Senate, the bill will still need Democratic support to get through Congress, political observers say.
The
said Scott Miller, a senior adviser at the Center for Strategic and International Studies. I think everybody has
concluded, including myself, that
Boehner (R-Ohio) has said the
White House needs to rally support from at least 50 House Democrats to get the bill through the
lower chamber no
easy task given the post-election decline in the number of trade-friendly Democrats.
Underscoring the difficulties the administration could face from intransigent Democrats, the White
Houses legislative abilities were tested just this month when countering Democratic opposition to the massive
even if the votes on a fasttrack bill can be had, this years stalled effort to get the legislation underway has
left little time to spare , especially given that Democratic
support could again grow more scarce once the presidential campaign kicks
into full gear toward the beginning of 2016. The point isnt lost on congressional trade
leaders . Incoming Senate Finance Chairman Orrin Hatch (R-Utah) said trade will top the committees agenda in early 2015. Sen. John
spending package, which barely squeaked through to passage, Miller said. And
Thune (R-S.D.), a Finance committee member and No. 3 in the Senate GOP leadership as Republican Conference chairman, said the bill would
likely be one of the first pieces of legislation that emerges from the panel, which has jurisdiction over trade. Trade supporters consider the bill
vital to ushering the Asia-Pacific trade talks toward their conclusion because it would give other countries the confidence to resolve major
outstanding issues such as access to medicines in developing nations, environmental protections and Japanese agricultural and U.S. auto tariffs
without having to worry that any hard-won concessions could be picked apart by congressional amendment. Bilateral talks between the U.S.
and Japan on the tariffs issue have proved particularly troublesome for the larger deal. In a breakthrough last month, Tokyo proposed more
meaningful tariff cuts on U.S. beef, pork and dairy products, but the negotiations have since stalled again over the United States refusal
to meet Japans demands for lower auto parts tariffs. Theyre kind of stuck because nobodys sure where the United States bottom lines are,
Miller said. I think thats the reason to get TPA, so all our trading partners know where the Congress bottom line is, and at that
point you conclude pretty quickly. The first six months of the year will be a critical window for finishing up the talks given the
tight timeline, officials from the TPP countries have said. Even if the pact gets signed, it will still have to go through a
legal scrubbing and translation before a bill to ratify the deal can be introduced. That could mean that the
implementing legislation would have to be drafted over the August recess with a view to getting the bill to
a vote before Thanksgiving, a former Senate Democratic aide speculated. If people are motivated to
finish, they could do it really, really quickly assuming they got the
votes , the former aide said, adding that the timing that the administration and others are talking about
strikes me as incredibly aggressive, but maybe not impossible. In
2011, the House and Senate were able to pass bills ratifying the deals with South Korea, Colombia and
Panama in a single day, the aide noted. But those agreements had been concluded in 2006 and 2007 under
President George W. Bushs administration and had a number of provisions renegotiated before the Obama
administration brought them to Congress for a vote.
WASHINGTON
In the near term, though, Mr. Obama is emerging with a more potent hand on the
world stage, having avoided a defeat that would have made him look like a lame duck . The trade talks have come
as he is at a critical stage in two other international negotiations, one with Iran to curb its nuclear program, the other with Cuba to restore
diplomatic relations. Mr. Obamas trade representative, Michael B. Froman, will now renew negotiations with
individual countries seeking to join the trade pact to work on outstanding issues. After that, the chief
negotiators of all 12 countries will gather in hopes of pushing through the final disputes. Other
Impacts
---MODULES---
are
the places where the 21st century, for better or for worse, will most likely be shaped; economic growth ,
survival . The worlds two most mutually hostile nuclear states , India and
Pakistan, are in Asia. The two states most likely to threaten others with nukes ,
North Korea and aspiring rogue nuclear power Iran , are there. The two superpowers with a
billion plus people are in Asia as well. This is where the worlds fastest growing economies
our
are. It is where the worst environmental problems exist . It is the home of the worlds largest democracy, the worlds most populous
Islamic country (Indonesia which is also among the most democratic and pluralistic of Islamic countries), and the worlds most rapidly rising non-democratic
power as well. Asia
holds more oil resources than any other continent; the worlds most important
and most threatened trade routes lie off its shores. East Asia, South Asia, Central Asia
(where American and NATO forces are fighting the Taliban) and
West Asia (home among others to Saudi Arabia, Israel, Turkey and Iraq) are the
theaters in the world today that most directly engage Americas vital interests and where our armed forces
are most directly involved. The worlds most explosive territorial disputes are in
Asia as well, with islands (and the surrounding mineral and fishery resources) bitterly disputed between countries like Russia,
the two Koreas, Japan, China (both from Beijing and Taipei), and Vietnam. From the streets of Jerusalem to the beaches of Taiwan the worlds
most intractable political problems are found on the Asian landmass and its surrounding seas. Whether you view the world in terms of
geopolitical security , environmental sustainability, economic growth or the march of democracy, Asia is at the
center of your concerns . That is the overwhelming reality of world politics today, and that reality is what President Obamas
trip is intended to address.
and
Chinese policy-makers would have to guess -- perhaps with only a few minutes -- if and when the
other side would go nuclear. This is especially scary because both sides have good reason to err on the side of assuming nuclear
war. If you think there's a 50-50 chance that someone is about to lob a nuclear bomb at you, your incentive is to launch a preventative strike, just
to be safe. This is especially true because you know the other side is thinking the exact same thing. In fact, even if you think the other side
probably won't launch an ICBM your way, they actually might if they fear that you're misreading their intentions or if they fear that you might
over-react; this means they have a greater incentive to launch a preemptive strike, which means that you have a greater incentive to launch a
preemptive strike, in turn raising their incentives, and on and on until one tiny kernel of doubt can lead to a full-fledged war that nobody wants.
The U.S. and the Soviet Union faced similar problems, with one important difference: speed. During the first decades of the Cold War, nuclear
bombs had to be delivered by sluggish bombers that could take hours to reach their targets and be recalled at any time. Escalation was much
slower and the risks of it spiraling out of control were much lower. By the time that both countries developed the ICBMs that made global
annihilation something that could happen within a matter of minutes, they'd also had a generation to sort out an extremely clear understanding of
one another's nuclear policies. But the
U.S. and China have no such luxury -- we inherited a world where total
mutual destruction can happen as quickly as the time it takes to turn a key and push a button. The
U.S. has the world's second-largest nuclear arsenal with around 5,000 warheads (first-ranked Russia has more warheads but less capability for
flinging them around the globe); China has only about 200, so the danger of accidental war would seem to disproportionately threaten China. But
the greatest risk is probably to the states on China's periphery. The borders of East Asia are still not entirely settled; there are a number of small,
conflicts that could come up between the U.S. and China, and though none of them should escalate any higher than a few tough words between
diplomats, it's the unpredictable events that are the most dangerous. In 1983 alone, the U.S. and Soviet Union almost went
to war twice over bizarre and unforeseeable events. In September, the Soviet Union shot down a Korean airliner it mistook for a spy plane; first
Soviet officials feared the U.S. had manufactured the incident as an excuse to start a war, then they refused to admit their error, nearly pushing the
U.S. to actually start war. Two months later, Soviet spies misread an elaborate U.S. wargame (which the U.S. had unwisely kept secret) as
preparations for an unannounced nuclear hit on Moscow, nearly leading them to launch a preemptive strike. In both cases, one of the things that
ultimately diverted disaster was the fact that both sides clearly understood the others' red lines -- as long as they didn't cross them, they could
remain confident there would be no nuclear war. But the
U.S. and China have not yet clarified their red lines for
nuclear strikes. The kinds of bizarre, freak accidents that the U.S. and Soviet Union barely survived in 1983 might well bring today's two
Pacific powers into conflict -- unless, of course, they can clarify their rules. Of the many ways that the U.S. and China could stumble into the
nightmare scenario that neither wants, here are five of the most likely. Any one of these appears to be extremely unlikely in today's world. But
that -- like the Soviet mishaps of the 1980s -- is exactly what makes them so dangerous.
The threat
of instability is a pressing concern. China, until last year the world's fastest growing economy, just reported that 20 million
migrant laborers lost their jobs. Even in the flush times of recent years, China faced upward of 70,000 labor uprisings a year.
A sustained downturn poses grave and possibly immediate threats to Chinese internal stability.
The regime in Beijing may be faced with a choice of repressing its own people or diverting their energies outward, leading to conflict with
China's neighbors. Russia, an oil state completely dependent on energy sales, has
well as in downtown Moscow. Vladimir Putin's rule has been predicated on squeezing civil liberties while providing economic
largesse. If that devil's bargain falls apart, then wide-scale repression inside Russia, along with a continuing
threatening posture toward Russia's neighbors, is likely. Even apparently stable societies face increasing risk and the threat
of internal or possibly external conflict. As Japan's exports have plummeted by nearly 50%, one-third of the country's prefectures have passed
emergency economic stabilization plans. Hundreds of thousands of temporary employees hired during the first part of this decade are being laid
off. Spain's unemployment rate is expected to climb to nearly 20% by the end of 2010; Spanish unions are already protesting the lack of jobs, and
the specter of violence, as occurred in the 1980s, is haunting the country. Meanwhile, in Greece, workers have already taken to the streets.
Europe as a whole will face dangerously increasing tensions between native citizens and immigrants, largely from
poorer Muslim nations, who have increased the labor pool in the past several decades. Spain has absorbed five million immigrants since 1999,
while nearly 9% of Germany's residents have foreign citizenship, including almost 2 million Turks. The xenophobic labor strikes in the U.K. do
not bode well for the rest of Europe. A
-India pakistan
Chaffin 11 Greg Chaffin 11, Research Assistant at Foreign Policy in Focus, July 8, 2011,
Reorienting U.S. Security Strategy in South Asia, online:
http://www.fpif.org/articles/reorienting_us_security_strategy_in_south_asia
The greatest threat to regional security (although curiously not at the top of most lists of U.S. regional concerns) is the possibility that increased IndiaPakistan tension will erupt into all-out war that could quickly escalate
. Indeed, in just the past two decades, the two neighbors have come perilously close to war on several occasions.
in the world
India
weaker conventional forces. In the event of conflict, Pakistans only chance of survival would be the early use of its nuclear arsenal to inflict unacceptable damage to Indian military and (much more likely)
elements
increasingly
that
Alan
Owen Brian
the
nuclear war. Their results are strikingly similar to those of studies conducted in 1980 that conclude that a nuclear war between
the United States and the Soviet Union would result in a catastrophic and prolonged nuclear
very well
. In their study, Robock and Toon use computer models to simulate the effect of a nuclear exchange between India and Pakistan in which each were to use roughly half their
Fahrenheit.
. The
This shift in global temperature would lead to more drought, worldwide food shortages, and widespread
political upheaval. Although the likelihood of this doomsday scenario remains relatively low, the consequences are dire enough to warrant greater U.S. and international attention.
Furthermore, due to the ongoing conflict over Kashmir and the deep animus held between India and Pakistan , it
. Indeed, following the successful U.S. raid on bin Ladens compound, several
members of Indias security apparatus along with conservative politicians have argued that India should emulate the SEAL Team Six raid and launch their own cross-border incursions to nab or kill antiIndian terrorists, either preemptively or after the fact. Such provocative action could very well lead to
escalate
-China
all-out war
could quickly
-Regional hegemony
Rudd 11 Kevin Rudd, Australian Minister for Foreign Affairs, The Case for American
Engagement in Asia: The Australian Perspective, 9-15,
http://foreignminister.gov.au/speeches/Pages/2011/kr_sp_110915.aspx?ministerid=2
THE GEO-STRATEGIC RAMIFICATIONS But as
Asia will be
vulnerable to a host of strategic uncertainties, arising from the need for new powers to integrate into the global economic
and political order, and for the established powers to accommodate them. The potential for misunderstanding and the
consequences of miscalculation is also vast. Tensions like those we see in the South China
powers inevitably brings new strategic complexity, as the power relativities of the 20th century give way to the new ones.
Sea , the East China Se a, the Korean Peninsula and the Persian Gulf may
become even more difficult to manage.
Make no mistake: these arent just regional problems. Questions about the future of the
South China Sea touch on every regional countrys future, given their global strategic and economic significance. This theme isn't new, but what
I can tell you about this strategic shift is that we Australia and the United States will face it as allies. Sure, there is the possibility
But we've faced the possibility of conflict and actual conflict together in the past. Many different tests,
circumstances and challenges have put the acid to our alliance since the ANZUS treaty was signed, 60 years ago. We've been reminded again that
the only time the ANZUS treaty has been formally invoked was ten years ago this week in response to the attacks on September 11. But
military and intelligence cooperation with the US continues across a wide range of theatres within the framework of the Alliance. Here in San
Francisco where the ANZUS treaty was signed, all those years ago I'm reminded that Australian and American servicemen and women
have fought, flown, sailed and I'm reliably informed surfed together since the Pacific War. Today, that Alliance continues to grow in
meaning and intensity. We are fighting together in Afghanistan; working together against global threats like piracy; and responding together to
natural disasters across the region. For us, for our relationship, the end of the Cold War hasnt meant a downgrading of the importance of our
Alliance if anything, its become more intense and more important. So as we face the challenges of the 21st Century the challenges of the
shift of power to Asia we will do so together. Were working together to ensure our forces are aligned in the right way to provide for the
national security of our two countries, and to help us shape the emerging regional environment. Our forces have to be able to respond to the
range of contingencies that can arise in our region, including humanitarian assistance and disaster relief. Increasingly, we arent just working
with each other, but with other regional players. I'm not just talking about the Pacific, or the Asia-Pacific. The critical region for our future now
extends to include the Indian Ocean as well. The growing strategic importance of the Indian Ocean starts with India's rise. India is the largest
democracy in the world. Forecast to be the third largest economy in the world in coming decades, it is in the interest of both the United States
and Australia for India to play the role of a major international power. For now, Indias focus remains South Asia. But its strategic weight is
increasing with its increasing economic size and strength. India is increasingly looking east with interest, both for strategic and economic
reasons, and because of long-standing cultural connections. But the importance of the Indian Ocean also lies in its unique role in maritime
security and sea lines of communication for a much larger group of economies, both in Europe and Asia. Lying between the Middle East energy
sources and the dynamic global engine room of Asia, its importance grows with each passing year. The pressures on the Gulf and
West Indian Ocean choke points will intensify, as India grows and East Asian centres of growth remain reliant on Gulf energy
and African resources. In the 21st Century, questions of resource, energy and food security are becoming more vital
than ever. As Robert Kaplan says, the Indian Ocean is once again at the heart of the world, as it was in ancient and medieval times. THE
ROLE OF THE UNITED STATES The United States has been a guarantor of security and economic
But the 21st Century will demand more . As the world changes, it's
even more critical that the US builds its engagement with our region. As the United States transitions back from tough and
prosperity in the Asia-Pacific for decades.
unforgiving wars in Iraq and Afghanistan, it might seem tempting to resist the case for further international engagement. President Obama has
already rightly intensified US involvement with East Asia. It remains the case, in one way or another, that the
free
movement of trade , capital and people around the world . Sea-lane security ,
regional security in critical regions like the Gulf, open markets , the reserve
currency , deep and liquid capital markets who else provides these global public goods? America has faced these
in solving common problems collectively.
No other power is able or willing to support essential global public goods like the
eve of entry into World War II, Henry Luce's seminal editorial in Life magazine on the American Century
a call for American
leadership in international affairs. It is in Americas interest and the worlds interest to provide that leadership because in its absence,
the risks grow that we will see destabilisation that threatens us all . The interdependence of our
was much more than a statement about relative power, as America assumed its position in the new order. It was
economies has been shown clearly by the financial crisis, and a collapse in the conditions for open trade would be an economic disaster for all
trading nations. I share President Obama's view that America can neither retreat from "responsibility as an anchor of global security" nor
"confront... every evil that can be found abroad". But President Obama talked of the need for a "more centered course"
I believe the vast majority of the countries of Asia welcome that continued and
expanded American strategic role in our hemisphere. As Indonesias President Yudhoyono said in November 2008, as the financial crisis was
wreaking havoc upon us, none of these global challenges can be addressed by the world community without having America onboard. And
conversely, none of these issues can be resolved by the United States alone. And as Lee Kuan Yew said a year later,
the consensus in ASEAN is that the US remains irreplaceable in East Asia. In the 21st Century, the
US needs substantial,
-pivot
Colby 11 (Elbridge, research analyst at the Center for Naval Analyses, served as policy advisor
to the Secretary of Defenses Representative to the New START talks, expert advisor to the
Congressional Strategic Posture Commission, Why US Needs its Liberal Empire, 8-10-11,
http://thediplomat.com/2011/08/why-us-needs-its-liberal-empire/comment-page-2/)
Political sentiment in the United States seems to be turning against the interventions and nation-building
projects that have characterized US foreign policy in recent years. The revulsion at the cost and size of government, including the cost of
expensive wars in the Middle East, has been amply demonstrated during the debt ceiling drama of recent weeks. President Barack Obama has
spoken of the need to nation-build at home rather than in Afghanistan, while most Republican presidential contenders showed an aversion to the
Libyan operation and an unending expansive role in Afghanistan during their first primary debate in New Hampshire. Congressional grumbling is
growing against further doubling-down in Afghanistan and the meandering intervention in Libya. This is very much to the good. At times
over the past two decades, US foreign policy has lost its moorings in distinguishing the vital from the desirable, with the result that conceptions
of US security and humanitarian interests have become so expansive as to be seen to obligate preventive war against rogue states, coercive
intervention against recalcitrant dictators, and inordinately ambitious efforts at forcibly modernizing backward societies with baleful results .
this disorienting fever is subsiding in favour of a return to the more restrictive war-making and
intervention criteria typified by the Weinberger/Powell Doctrine, then theres cause for satisfaction. But the
pendulum shouldnt be allowed to swing too far toward an incautious retrenchment. For our
problem hasnt been overseas commitments and interventions as such, but the kinds of interventions. The US
If
alliance and partnership structure, what the late William Odom called the United States liberal empire that includes a substantial military
presence and a willingness to use it in the defence of US and allied interests, remains a vital component of US security and global stability and
prosperity. This system of voluntary and consensual cooperation under US leadership, particularly in the security realm, constitutes a formidable
bloc defending the liberal international order. But, in part due to poor decision-making in Washington, this
particularly in East Asia , where the security situation has become tenser even as the region continues to become the centre of the
global economy. A nuclear North Koreas violent behaviour threatens South Korea and Japan, as well
as US forces on the peninsula; Pyongyangs development of a road mobile Intercontinental Ballistic
Missile, moreover, brings into sight the day when North Korea could threaten the United States itself with
nuclear attack , a prospect that will further imperil stability in the region. More broadly, the rise of China
and especially its rapid and opaque military build-up combined with its increasing assertiveness in regional disputes is troubling to the United
States and its allies and partners across the region. Particularly
lesson to be drawn
we must be
more discriminating in making and acting upon them. A total US unwillingness to intervene would pull the
rug out from under the US-led structure , leaving the international system prey to disorder at the least,
and at worst to chaos or dominance by others who could not be counted on to look out for US interests. We need to
focus on making the right interventions , not forswearing them completely. In practice, this means a
more substantial focus on East Asia and the serious security challenges there, and less emphasis on the Middle East. This isnt
from recent years is not, then, that the United States should scale back or shun overseas commitments as such, but rather that
to say that the United States should be unwilling to intervene in the Middle East. Rather, it is to say that our interventions there should be more
tightly connected to concrete objectives such as protecting the free flow of oil from the region, preventing terrorist attacks against the United
States and its allies, and forestalling or, if necessary, containing nuclear proliferation as opposed to the more idealistic aspirations to transform the
regions societies. These more concrete objectives can be better met by the more judicious and economical use of our military power. More
broadly, however, it means a shift in US emphasis away from the greater Middle East toward the Asia-Pacific region, which dwarfs the former in
economic and military potential and in the dynamism of its societies. The Asia-Pacific region, with its hard-charging economies and growing
presence on the global stage, is where the future of the international security and economic system will be set, and it is there that Washington
needs to focus its attention, especially in light of rising regional security challenges. In light of US budgetary pressures, including the hundreds
of billions in security related money to be cut as part of the debt ceiling deal, its doubly important that US security dollars be allocated to the
most pressing tasks shoring up the US position in the most important region of the world, the Asia-Pacific. It will also require restraint in
expenditure on those challenges and regions that dont touch so directly on the future of US security and prosperity. As Americans debate the
proper US global role in the wake of the 2008 financial crisis and Iraq and Afghanistan, they would do well to direct their ire not at overseas
commitments and intervention as such, but rather at those not tied to core US interests and the sustainment and adaptation of the liberal empire
that we have constructed and maintained since World War II. Defenders of our important overseas links and activities should clearly distinguish
their cause from the hyperactive and barely restrained approach represented by those who, unsatisfied with seeing the United States tied down in
three Middle Eastern countries, seek intervention in yet more, such as Syria. Indeed, those who refuse to scale back US interventions in the
Middle East or call for still more are directly contributing to the weakening of US commitments in East Asia, given strategic developments in the
region and a sharply constrained budgetary environment in Washington. We
the global trading system . The years since the Great Recession have seen a dramatic
increase in countries use of innovation mercantilist policiessuch as forcing local production as a
condition of market access, subsidizing exports, stealing intellectual property, or manipulating currencies
and standardswhich seek to favor domestic enterprises at the expense of foreign competitors. Viewing
with envy Chinas rapid economic growth, dozens of other countriesfrom Brazil and India to Malaysia and South
Africahave enacted similar mercantilist policies, giving rise to an emerging Beijing Consensus (i.e.,
innovation mercantilism). In fact, as evidence of this, the World Trade Organization reported that the number of
technical barriers to trade reached an all-time high in 2012. And as this emerging Beijing Consensus
gains strength, it comes at the expense of the long-dominant, but now exhausted, Washington
Consensus which has believed in the unalloyed benefits of free trade, even when it is one-sided, and that
has fretted that robust enforcement of trade rules may ignite a trade war . As such, we need a new consensus,
one that holds that trade and globalization remain poised to generate lasting global prosperity, but only if
all countries share a commitment to playing by a strong set of rules that foster shared, sustainable growth.
And thats what the United States is doing in seeking to negotiate TPP and T-TIP agreements as model, 21st
century compacts that set the bar and lay the foundation upon which a stronger set of future global trade
rules can be built. If America doesnt successfully conclude and pass through Congress these nextgeneration trade agreementsand lets be clear, it will be much more difficult, if not impossible, to accomplish this without TPA
America risks losing out on the ability to set the agenda and standards for a more robust and liberalized
global trade system going forward.
Trade leadership is key to prevent great power war escalation.
Troxell, 14 -- US Army War College Strategic Studies Institute national security and military
strategy research professor, 7-15-14
[John, Op-Ed: Global Leadership Learning From History
http://www.strategicstudiesinstitute.army.mil/index.cfm/articles/Global-Leadership-LearningFrom-History/2014/07/15]
We are in the season of discontent concerning the position of the United States in the world . Following the
financial crisis, it was the declinist narrative, and now it appears to be verging on a competency, or weariness, narrative. We recognize our
fundamental strengths and lean away from global responsibilities. Pundits from both sides of the aisle
wonder about the direction of our nation and the unease this has caused in the rest of the world . Signs of
retrenchment and floundering abound, and the concern over the future leadership role of the United States is not just a
partisan endeavor. The National Intelligence Councils Global Trends 2030 listed as one of its potential game-changers the uncertain role
of the United States. Whereas the United States was previously perceived as a global stabilizer, in the future,
the United States is increasingly perceived as a variable .1 Highlighting the perception of growing unease over the role of the
United States was the recent cover story in the Economist entitled, What Would America Fight For? The Question Haunting its Allies.2 Crises
in Syria, Ukraine, the South China Sea, and now Iraqall cry out for U.S. engagement in support of the liberal world order we have assiduously
supported for decades. Fortunately, this season of discontent corresponds with a season of momentous
commemorations that offer valuable lessons that could help us get back on track toward demonstrating
global leadership and responsibility. August marks the 100th anniversary of the outbreak of World War I, viewed by many as the
greatest catastrophe of the 20th century, the first calamity of the 20th century, the calamity from which all other calamities sprang.3 We have
also recently witnessed the moving commemorations of the 70th anniversary of the D-Day invasion. Arguably, however, a more important
anniversary is the convening of the Bretton Woods conference, just 1 month later in July 1944 that resulted in correcting the failed legacy of
World War I by creating international institutions for governing the global economy. Finally, in June, despite Chinese government efforts to erase
memories of the 25th anniversary of the Tiananmen crisis, it remains an important reminder that China continues on an evolutionary and very
uncertain path. These three events speak volumes about important lessons the United States should be applying now as it struggles to define its
role in the world following its debilitating decade of war. As Robert Kagan recently noted, These days it is hard to watch both the conduct and
discussion of American foreign policy and not sense a certain unlearning, a forgetting of old lessons. . . .4 Relearning just a few
lessons from these commemorative occasions should help our leaders and people understand the
importance of U.S. global leadership as we shape the future, and avoid the perils of the past . Excellent
scholarship abounds on the run up to World War I, and two recent books worthy of consideration are: Sleepwalkers by Christopher Clark; and,
The War that Ended Peace by Margaret MacMillan. Among the many reasons for the outbreak of World War I, two stand out as of particular
importance for what they say about current circumstances: the perils of nationalism and complacency. Lack of trust between the pre-
World War I great powers was exacerbated by the failure to abate the rise of nationalism . The advent of mass
media led to the growth of a nationalist public opinion, fanned by politicians appealing to popular fears and prejudices and their populism.
Governments were finding, MacMillan concludes, that their ability to maneuver was increasingly circumscribed by their publics emotions
and expectations.5 Today, U.S. political leaders seem to be most interested in winning the next election, as
opposed to leading the nation, let alone the global community. Appeals to populist platforms on both the
left and right, along with an over emphasis on nation building at home, all stoke fears and nationalist
responses. Sure, all politicians want to win reelection, but occasionally the good ones rise above personal aspirations to make the hard choices
for the good of the nation. Newt Gingrich recalled that one of the most courageous decisions President Clinton made was to eventually come out
in favor of the North American Free Trade Agreement (NAFTA). It was a tough choice, and he had to make the case to the American people.
President Obama recently argued that leadership requires leveling with the American people about required sacrifices, yet an election focus feeds
populist responses and trumpets government payouts, not sacrifice nor national responsibility. Anyone reading about the coming of
World War I cannot fail to recognize the apparently unending series of great power crises that occurred
from the beginning of the 20th century. Controlled brinkmanship was demonstrated in North Africa, the Far East, Persia, and, of
course, the Balkans. French socialist Jean Jaures commented on the impact of muddling through, Europe has been afflicted by so many crises for
so many years, it has been put dangerously to the test so many times without war breaking out that it has almost ceased to believe in the threat
and is watching the further development of the interminable Balkan conflict with decreased attention and reduced disquiet.6 Leader
complacency, caused by repeatedly running to the edge of crises prior to reaching a resolution, leads to a
false sense of security. Our political establishment has mastered the art of kicking the can down the road
and muddling through, and has become complacent about the need to address pressing problems , most readily
demonstrated in our fiscal mismanagement. How many times have we dangerously approached the fiscal cliff? The need for a grand bargain to
balance revenues, entitlements, and government services has been recognized, studied, and commissioned for years without effective action.
Bruce Jones, author of the recent and appropriately titled book, Still Ours to Lead, offers this thought, . . . if the United States does not rectify a
perception that it is becoming incapable of managing its global financial role, the willingness to participate in a system still overwhelmingly
managed by the United States will be undermined.7 Perhaps we have become complacent in another matter. In a recent Brookings Essay,
Margaret MacMillan argues that: Like our predecessors a century ago, we assume that large-scale, all-out war is something
we no longer do. In short, we have grown accustomed to peace as the normal state of affairs. We expect
that the international community will deal with conflicts when they arise, and that they will be short-lived
and easily containable. But this is not necessarily true.8 Decreased attention may already have contributed to worsening
situations in the Middle East, Ukraine, and the Western Pacific. World War I was botched on the front end and the back end.9 The failure to
achieve a just and lasting peace in 1919 led to the outbreak of World War II. Economic distress during the interwar
years resulted in the rise of fascist states and easily rekindled the embers of nationalist revanchism. President Woodrow Wilsons 14 points were
not adhered to, including the all-important point 3: the removal, as far as possible, of all economic barriers and the establishment of an equality
of trade conditions among all nations consenting to the peace and associating themselves for its maintenance. In terms of post-war economic
relations, the opposite occurred as nations scrambled to respond to the 1929 crash. Nations participated in a series
of competitive devaluations and enacted crippling tariffs, sending the global economy into a death spiral .
Our second major commemoration of this summer is the Bretton Woods conference , convened shortly after the DDay landings and well before the end of World War II. It was focused on creating a post-war international regime based
on rules designed to govern the global economy. Following the collapse of the Soviet empire, these rules now govern the vast
majority of the globally interconnected economy. The results of this conference point to the importance of institutional arrangements to monitor
and support the global economy, including the International Monetary Fund (IMF) and the European Bank of Reconstruction and Development,
better known today as it has evolved into the World Bank (WB); and the commitment to free trade. Conference attendees initially debated the
creation of the International Trade Organization, which at the time proved to be a bridge too far, and thus they settled on the General Agreement
on Tariffs and Trade (GATT). Through a series of multinational negotiating rounds and agreements, culminating in the creation of the World
Trade Organization (WTO) in 1995, GATT, and now the WTO, have succeeded in broad tariff reductions and a dramatic increase in global trade.
The liberal world economy, based on open markets and free trade, and managed by rules-based, international monetary and trade regimes, has
furthered both individual and collective interests and promoted international cooperation. When it comes to the support for international
institutions, the President is correct in highlighting their importance. But some of that support should also be expressed in action, particularly as it
relates to the global economy. Once again the President is right to focus on the key source of American strength: a growing economy, and there
is nothing wrong with domestic nation building, but only if it does not replace an equal emphasis on the management and continued engagement
in geoeconomic affairs. International regimes, particularly those related to the global economy, require the willingness to fight for proven
common benefits. Globalization has provided proven benefits , but it has always been a hard sell with the
American people and thus our politicians need to continue to make the case. The United States is
currently engaged in two potential game changing trade negotiations: the Trans-Pacific Partnership (TPP), and the
Trans-Atlantic Trade and Investment Partnership (TTIP). These are both characterized as comprehensive and high-standard 21st century trade
agreements and could knit together most of the major trading nations, generating increased economic benefits for all. Of the two, the TPP holds
the most promise because of the possibility that China may join, further integrating their economy into the international rules-based trading
regime. Encouraging our negotiating partners to take the necessary political risks to finalize these
agreements would be facilitated if the United States showed leadership and passed Trade Promotion
Authority. The President called for this action in his State of the Union address, and was immediately rejected by Senator Harry Reid.
Congress also needs to make progress on IMF reforms. Economics represents a positive-sum game and leads to international cooperation. The
United States needs to level with the American people and show leadership in this area. Bretton Woods points to the essential role
of the United States in supporting these global economic arrangements. The Bretton Woods conference
represented a made in America approach to the global economy,10 and the United States was willing to
fulfill that essential leadership role. Political economist Robert Gilpin argues that: there can be no liberal international
economy unless there is a leader that uses its resources and influence to establish and manage an
international economy based on free trade, monetary stability, and freedom of capital movement. The
leader must also encourage other states to obey the rules and regimes governing international economic
activities.11 Global economic leadership requires the United States to lead by example and demonstrate
competent policy outcomes. This brings us to the commemoration of Tiananmen, which serves to focus our attention on the rise
of China and both the possibility of replaying the events of 1914 between transitioning powers, and the
prospect that the existing rules for the global economy no longer apply. Tiananmen represents a critical
example of the ongoing transformation of China. Prior to 1989, China, under the leadership of Deng Xiaoping, made rapid progress concerning
the four modernizations: agriculture, industry, science and technology, and defense. However, Tiananmen pointed out the governments lack of
attention to the fifth modernization, political transformation. China is now embarked on an even more ambitious reform agenda targeted at
overcoming the middle-income trap. The middle-income trap postulates that after developing nations have harvested the low-hanging fruit of
cheap labor and light manufacturing, they begin to lose their low-cost labor advantage and must transition to a knowledge based economy to
move into a higher income status. Chinas new leaders, Xi Jinping and Li Keqiang, recognize the need for dramatic
economic reform and have presented plans for a new growth model relying on the decisive role of the
market and rebalancing the economy to focus more on domestic consumption . The extensive reform agenda includes
reform of the household registration system (hukou), new arrangements to fund local governments, ongoing measures to address corruption,
inequality, and pollution. Chinas success implies an increased urban voice and a more individualistic consumer-based economy. All of this
presages the need to address the fifth modernization of political reform and transformation. Under these circumstances, there is
much that the United States can do to build a relationship of trust with China, to avoid the pitfalls of a
1914-style power transition, and to further integrate China as a stakeholder in the global economy . At the
same time we should not overestimate the challenge posed by China and recognize the difficulties (and possibilities) inherent in its current reform
agenda. A thoughtful array of transparent security and inclusive economic policies should point to
cooperation, not conflict. We have always maintained a strong presence in the Pacific, and for the past decade have been engaged in
intensive dialogue with China. The unneeded pivot seems to have heightened a sense of mistrust as China perceives containment, while at the
same time creating a perception elsewhere of a U.S. loss of interest. Today, U.S. leadership does not demonstrate much
appreciation for any of these lessons of history. Official statements claiming a continuing objective of
global leadership are insufficient.12 Leadership needs to be demonstrated through concrete actions . Failure
to learn important lessons from the events we commemorate this season will only serve to disadvantage our nation and condemn future
generations to unnecessary hardship.
policy vision Hanging in the balance is Obamas vision of Americas place in the
world and the kind of leadership it can best wield in the 21st century, some
foreign-policy analysts say. President Obama is not battling to save his Asian-Pacific trade agenda simply
because he suddenly believes in free trade. For Mr. Obama, the fight in Congress over granting him Trade Promotion
Authority (TPA) is about something much bigger. Hanging in the balance is nothing less
longer the go-italone superpower leading a multipolar world where associations of like-minded nations build
regional security and economic prosperity , these analysts say. With the Obama
administration pursuing not only the Asian-Pacific trade deal but also a transformational trade pact with the European
the moment , they add, could not be more critical. Without the trade deals,
America does not get to set the global economic rules for the new
era, using trade to bind its allies around the globe to the US
and to one another , says John Hulsman, a US foreign policy analyst based in Germany. It is not too much to say, he
adds, that without TPA, there simply is no grand strategy for the new era in
Americas relations with the world.
Union,
international system causes many positive outcomes for the world. The first has been a more
peaceful world . During the Cold War, US leadership reduced friction among many states
that were historical antagonists, most notably France and West Germany. Today, American primacy
and the security blanket it provides reduce nuclear proliferation incentives and help keep a number of
complicated relationships stable such as between Greece and Turkey, Israel and Egypt, South Korea
and Japan, India and Pakistan, Indonesia and Australia. Wars still occur where Washingtons
interests are not seriously threatened, such as in Darfur, but a Pax Americana does reduce wars
likelihoodparticularly the worst form great power wars .
Second, American power gives the United States the ability to spread democracy and many
of the other positive forces Pinker identifies . Doing so is a source of much good for the countries
concerned as well as the United States because liberal democracies are more likely to align with the
United States and be sympathetic to the American worldview . In addition, once states are governed
democratically, the likelihood of any type of conflict is significantly reduced . This is not because
democracies do not have clashing interests. Rather, it is because they are more transparent, more
likely to want to resolve things amicably in concurrence with US leadership .
Third, along with the growth of the number of democratic states around the world has been the
growth of the global economy. With its allies, the United States has labored to create an
But, the waning of US power, at least in relative terms, introduces additional problems for Pinker
concerning the decline of violence in the international realm. Given the importance of the
distribution of power in international politics, and specifically US power for stability, there is
reason to be concerned about the future as the distribution of relative power changes and not to the
benefit of the United States.
Econ
Try or die - TPP vital to prevent future collapse of US and global economies key to
sustainable growth and vital to overcome structural impediments
Zoellick, 14 -- (Robert, former US trade representative, A Trade Opportunity for Obama and
the New Congress, 12-28, http://www.wsj.com/articles/charles-boustany-and-robert-b-zoellicka-trade-opportunity-for-obama-and-the-new-congress-1419811308
. So why does trade matter? First, Americans are feeling squeezed. On the eve of the election, Pew Research reported that 79% of Americans considered the economy to be poor or at best fair. A boost in U.S. trade can increase wages and lower living expenses for familiesoffering higher
earnings and cutting taxes on trade. Manufacturing workers who produce exports earn, on average, about 18% more, according to the Commerce Department. Their pay raise can be traced to the higher productivity of competitive exporting businesses. Since World War II, U.S. trade policy
has focused on lowering barriers to manufacturing and agricultural products. But U.S. trade negotiators also use free-trade agreements (FTAs) to pry open service sectors and expand e-commerce. In recent years, such business services as software, finance, architecture and engineering
employed 25% of American workers, more than twice as many as worked in manufacturing. Business service employees earned over 20% more than the average manufacturing job, and the U.S. consistently runs a trade surplus in business services. Over the past five years, the World Bank
American families, and businesses, benefit from higher incomes and lower-priced imports.
orld
rade
rganization
orth
merican
ree
rade
greement
Second,
example,
. Vietnam and Malaysia would also take part; they believe they can use the rules and disciplines of the
the
centrepiece of the Obama administration's "pivot", renamed the "rebalance", to Asia. Obama's
request to Congress to grant him the unfettered power to complete a multilateral deal via trade promotion authority is welcomed, including by
Australia. A failure by Obama to overcome free-trade opposition by Democrats beholden to unions, and some Republicans opposed to
bestowing on Obama the power to unilaterally negotiate the details of trade deals,
the US's credibility in Asia. Asian allies, partly out of concern about China's growing
power in the region, are anxious to see the TPP deal sealed. It is the key economic aspect of the US's
tripartite rebalance, to complement the security and diplomatic pieces. Kurt Campbell, the former
assistant secretary of state for east Asian and Pacific affairs, and architect of the pivot, argues the TPP is
critical to US credibility in Asia. "If the United States does everything right in Asia, goes to the meetings,
participates but we don't get TPP done, it's very hard to succeed," Campbell said in a speech in Washington last
September. "If we make a lot of mistakes but get TPP done, we can still be successful in Asia. That's how
important TPP is."
policy Critics have long predicted that President Barack Obama's policy to shift America's focus toward
Asia is doomed. The legislative battle over his trade agenda could prove the acid test.
Legislation to smooth the way for
a free-trade pact with 11 other Asia-Pacific nations hit a wall in Congress last week, but
obstacles
remain principally, opposition from Obama's fellow Democrats who believe trade deals cost American
jobs. The Obama administration itself has always presented the Trans-Pacific
was given new life Thursday as the House took a first step to reverse the setback as soon as the July 4 national holiday. Tough
Partnership as crucial to its "pivot " toward the increasingly prosperous Asian region, after a post9/11 preoccupation with wars in Afghanistan and Iraq. Officials
China. But the administration was slow off the blocks in the politically prickly task of getting congressional support for "fast track" authority for
the president to negotiate trade pacts that lawmakers can approve or reject but not amend. That's viewed as essential for winning eventual U.S.
ratification for TPP. The upshot was a logjam in Congress that Obama and his legislative allies which in this case are mostly Republicans
are seeking to break. The House voted in favor of fast track on Thursday, but uncertainties remain on the path ahead. That stand-alone measure
now goes to the Senate. A companion bill to provide federal aid for workers harmed by imports awaits action in both houses in the coming days.
The two measures were originally combined into one, to sweeten the deal for union-backed Democrats who voted against it anyway last Friday
a political setback that was greeted with anguish by Asia experts in Washington and former administration officials. Larry Summers, a former
director of the National Economic Council in the Obama White House, wrote then that unless the trade legislation votes were successfully
revisited, it would "doom" the TPP. "It would leave the grand strategy of rebalancing U.S. foreign policy toward
Asia with no meaningful nonmilitary component, " he said. Obama, who was born in
Hawaii and spent some of his childhood in Indonesia, has described himself as "America's first Pacific President." He took office believing that in
no small measure, America's future is tied to Asia's, as the center of global economic growth has shifted eastward.
His grand strategy to elevate America's profile in the region has been welcomed both in Washington and
in Asia, where China's assertive behavior in disputed maritime territories has unnerved its neighbors. But
skepticism has grown. Preoccupation with crises in the Mideast, cuts to the U.S. aid and defense budgets,
and domestic political woes have all been held out as reasons for Obama's signature foreign policy to fail.
The pivot has variously been described by critical U.S.-based commentators as "defunct," suffering a
"slow death," ''shrinking" or in need of a serious "rethink." This time, however, the crisis
Australian Trade
TPP is top Obama agenda priority failure is a death blow for Asia pivot and US
leadership in Asia outweighs all other issues
LaFranchi, 6/16/15 -- Howard LaFranchi has been the Christean Science Monitor's diplomacy
correspondent in DC since 2001. Previously, he spent 12 years as a reporter in the field; serving
five years as the Monitor's Paris bureau chief from 1989 to 1994, and as a Latin America
correspondent in Mexico City from 1994 to 2001, Christian Science Monitor,
http://www.csmonitor.com/USA/Foreign-Policy/2015/0616/How-Asia-trade-deal-could-makeor-break-Obama-s-foreign-policy-vision-video
The Trans-Pacific Partnership, or TPP, that Obama had hoped to conclude by the end of the year with 11 other Pacific Basin countries most
is currently at the top of Obamas agenda because of what it means for his
Asia strategy. Without TPA the ability to negotiate trade deals with the assurance that Congress will only be allowed a simple yes or no,
non-amendable vote on a concluded trade accord Obama has virtually no chance of securing a TPP deal. And without TPP, the Asia
pivot in US strategic interests that Obama has been pushing since taking office in 2009 will be halted in its
critically Japan
still tentative tracks reduced largely to the aspirational rhetoric that critics claim it has
been all along. For Obama administration officials, the Asia pivot or what they prefer to call a rebalancing of
US interests towards a dynamic and fast-growing Asia is not just about the number of US forces
stationed in the region (Two pieces of the rebalancing so far have been accords to rotate troops into Australia and the Philippines).
Perhaps even more important is the economic dimension of the turn to
Asia. Not only does Obama underscore at every turn possible the importance of securing Americas stake
in the booming Asian economy, he also notes that some power is going to determine the
rules of the road for the worlds most dynamic trading region .
(The insinuation being that its much better that it be the US and not China, the regions other dominant power.) The
challenge to
Obamas Asia policy and the death blow that failure to move ahead on
the Center for Strategic and International Studies in Washington. Do you want to be
the economic
dimension to its Asia policy, the US is reduced to primarily a military power in the region. But in a part of
the globe where trade and economic prosperity are the focus , he added, thats
not the lever you want to use . Noting that the 40-percent share of global GDP that the
region represents is only expected to grow, Mr. Shanmugam said, In all of this, where is the United States? The
Asian diplomat sounded almost like he could have been speaking from White House talking points,
suggesting that if the US chooses not to lead that Asian countries will
have no choice but to look elsewhere. That argument may not sway
Congress , however, which some see as too inwardly focused to grasp the changes
going on in the world. We are shifting into a more multipolar world, but its not clear Washington
realizes that, says Mr. Hulsman, who is president of John C. Hulsman Enterprises, a global political risk firm.
TPP rights the U.S. ship in Asia overcomes all of the other problems with the pivot
Cronin, 3-18-15 -- Patrick, Senior Director of the Asia-Pacific Security Program at the Center
for a New American Security, The Straits Times, lexis)
SOME business analysts are stressing that the pending Trans-Pacific Partnership (TPP) between the United States and 11 other countries
promises smaller rewards - if also fewer risks - than previous multilateral efforts to liberalise trade. But
such a judgment omits altogether the national security reasons for finalising both the trade pact and the Trade
Promotion Authority that would strengthen the role of the US President in advancing regional commerce. First, the
and interest that appeals to all actors in the Asia-Pacific region. In Asia,
trade is the coin of the realm. The TPP rebrands America as a leading
market power, rather than just a security guarantor that brings big guns to settle local disputes . In addition, the
TPP bolsters a model of sustainable economic growth that is essential to maintaining
our long-term security posture , both with respect to defence spending and forward
military presence. Second, the Pacific trade pact would do more to reassure
our key allies than simply tinkering on the margins of our
military presence . Our presence is vital. But if we want to signal that we
are serious about being a permanent Pacific power, then long-term trade
frameworks are more compelling . Despite our military activity, Japan and Australia
remain anxious about our future intentions. That is not good, given how
important these allies are. Indeed, Australia is becoming increasingly important for rotational presence and exercising, and the only other country beyond Japan and South
Korea where we can imagine being prepared to conduct "Phase 2" combined operations designed to "seize the initiative". The converse of reassurance would be
an action - or in this case, inaction - that would sow great doubt on American
credibility . The failure to complete this trade pact would strike a serious blow to our
reputation, and one from which it would be difficult to recover .
The TPP anchors our future interests in the region that speaks to Tokyo,
Seoul, Canberra and others worried about US power and purpose in the wake of events such as the
protracted post-9/11 diversion or the impact of the 2008 Lehman Brothers' bankruptcy on regional calculations. A third and
related national interest in completing the TPP is that it would allow the US to entrench itself in the world's
most dynamic world and thereby reach out to new partners in non-military ways. This simultaneously
Passage of the TPP key to make the pivot effective embeds US presence in region
and vital to regional perceptions
Miller and Goodman 15. [Scott, senior adviser and holds the William M. Scholl Chair in International Business at CSIS,
Matthew, William E. Simon Chair in Political Economy at CSIS, "Conclude the Trans-Pacific Partnership" CSIS -- January -csis.org/files/publication/141223_Green_Pivot_Web.pdf]
The Trans-Pacific Partnership (TPP) is the central economic component of the administrations pivot, or rebalance, to
Asia. A completed TPP would create the largest free-trade area in which the United States participates,
representing 40 percent of all U.S. merchandise trade, with potential for expansion to other regional
economies. TPP would help establish a modern set of commercial rules for the Asia Pacific, where U.S.
firms have a large and growing stake. And TPP reinforces the American presence
officials will host trade negotiators from 11 nations spanning Asia and
the Americas to work toward completing what could be the most significant trade deal in a generation. Five
years in the making, the Trans-Pacific Partnership (TPP) would cover 40% of global gross domestic product and a third of
world trade. Any such deal ultimately will have to make it through the U.S. Congress. In order to prevent lawmakers from amending the agreement and
undoing years of international negotiations, Congress will first have to provide President Obama with trade promotion authority, also known as fast-track, that
allows a yes-or-no vote on the package. This
is the time for advocates on both sides to move beyond the usual economic
arguments and consider the extraordinary geopolitical stakes involved. Not every trade
central feature of U.S. global power. These critical partnerships are at their
strongest and most durable when military cooperation rests on
a foundation of shared economic interests. Wealthier partners benefiting
from a more open regional trading system would be able to devote greater resources to
helping the U.S. address global and regional security
challenges , from counterterrorism and maritime security to humanitarian assistance and disaster
relief. The TPP also represents an unprecedented opportunityand one that may not return for decadesto establish
widespread trade rules in Asia that advance U.S. values and interests. The agreement would lock in stronger labor and
environmental protections, while establishing new rules on intellectual property rights and curbing unfair government subsidies to state-owned enterprises. Ensuring
that countries like Japan, Malaysia and Vietnam elevate their practices to meet these higher standards would yield economic and social reforms that the U.S. has long
sought to advance in Asia. This wave of reform would continue as other countries line up to join the pact in future rounds. Critics of free trade in general, and the TPP
in particular, claim these standards don't go far enough. Perhaps, but the perfect should not be the enemy of the good. Given the painstaking negotiations and the
diversity of countries involved, disrupting the deal now would likely lead to no deal at all. In
Key to asia stability and pivot shores up current weaknesses and swamps alt
causes
Brown and Oudraat 2-6. [Michael, dean of the Elliott School of Int'l Affairs @ George Washing, Chantal de JOnge Oudraat,
president of Women in International Security, "Trade, power and opportunity" Washington Post -- www.washingtonpost.com/blogs/monkeycage/wp/2015/02/06/trade-partnerships-are-an-opportunity-not-to-be-missed/]
Second, turning
to the Pacific, the rise of China is the great balance of power challenge of our time. The TPP
isnt a Pacific panacea, but it is an important part of the equation. It would reinforce the United States
position in the region and provide strategic reassurance to the many Asia-Pacific countries that worry
about Chinas rise that is, everyone except North Korea. It would be a new, strong multilateral accord in a
region that very much needs more multilateral frameworks. These would be stability-enhancing
developments. Third, TPP and TTIP pacts would strengthen Obamas personal credibility and the United
States international leadership position. Obamas failure to enforce his red line on the use of chemical
weapons by the regime of Syrian President Bashar al-Assad has done real damage to his credibility in the Middle East,
Asia and around the world. Effective presidential leadership in these trade negotiations would help to
restore Obamas international credibility. A TPP agreement would also solidify the economic pillar of
Obamas pivot to Asia a geostrategic priority. More generally, effective U.S. leadership on TPP and TTIP would
enhance the United States standing in an era when many countries need strategic reassurance and want
U.S. engagement. Fourth and last, economic strength is one of the fundamentals of national and international
power. This has been true for hundreds of years, and it might apply with even more force today, given the emergence of a truly global economy. In a world
where national power and balance of power considerations are still important where some states are
failing and others are flailing it is essential for the United States and its allies to strengthen their
economic fundamentals and economic ties. TPP and TTIP agreements would help.
TPP is sin quo non of Asia Pivot Success and US regional leadership
Goodman, Simon Chair in Political Economy at CSIS, 2013
(Matthew, December, economics and the rebalance,
http://csis.org/files/publication/131220_Global_Economics_Monthly_v2issue12.pdf)
Economics is at the heart of U.S. involvement in the Asia Pacific . This statement is as true today as it was in 1784, when
the first U.S. merchant ship bound for Canton set sail from New York. Trade, investment, and other economic ties across the Pacific today are
measured in the trillions of dollars, support millions of American jobs, and underpin our national security . Like administrations before it, the
Obama administration has
put economics at the center of its Asia-Pacific strategy. But it has arguably raised the
stakes by making the overall success of its policy of rebalancing to Asia contingent on a successful
economic strategy, in particular completion of a high-standard Trans-Pacific Partnership (TPP) trade agreement. The
economic leg of the rebalance is driven by three broad objectives: promoting growth and jobs, upholding
and updating the rules of the international trading system, and supporting Americas long-term presence
in the region. It is worth noting that these objectives get to both sides of the coin regarding the relationship
between economics and foreign policy: using diplomatic tools to support better economic outcomes , such as
more growth and jobs; andarguably more challengingusing economic tools in a strategic way to support foreign
policy objectives, such as strengthening the rules and supporting our presence in the region. In pursuit of these objectives, the Obama
administration has used a multilayered approach to economic engagement in the Asia Pacific. This has bilateral, regional, and global strands,
from the Strategic & Economic Dialogue with China, to TPP and the Asia-Pacific Economic Cooperation (APEC) forum, to the G-20, half of
whose members are Asia-Pacific countries. And it encompasses all aspects of economic policy, including promotion of strong domesticdemandled growth in large Asian surplus economies; negotiation of bilateral investment treaties; and strategic use of development assistance. But trade
and TPP in particularis the
strategy in Asia. Through TPP, the administration seeks to advance all three objectives mentioned
above, with an accent on updating the rules. TPP aims to establish disciplines on an array of behind-the-border impediments,
such as excessive or nontransparent regulation; preferences for domestic, especially state-owned, enterprises; and inadequate intellectual property
protection. The administrations aim appears to be making a successful TPP the driver and de facto template for a new multilateral system of
rules. Failure to reach a TPP deal at this months ministerial meeting in Singapore was disappointing but not fatal. Trade talks are always darkest
and noisiestbefore the dawn, as differences are narrowed to the most politically contentious issues. There are still grounds for optimism that
a basic TPP deal can be reached by the time of President Obamas planned trip to Asia next April. The stakes could not be higher for
the White House. Conclusion of TPP is the sine qua non of success for
military considerations
. The U.S. Congress can support the economic leg of the rebalance in several important
ways. First, enacting trade promotion authority legislation would give the administration the guidance and certainty it needs to close a highstandard TPP deal; without TPA, it is difficult to see how the Office of the U.S. Trade Representative (USTR) can persuade its counterparts that it
can fulfill its end of the bargain.
TPP failure devastates pivot and credibility of US leadership in Asia spills over
throughout all US policy, Allies are already jittery
Hudson, 6/12/15 John, senior reporter at Foreign Policy and co-author of the
magazine's The Cable blog where he reports on diplomacy and U.S. national security
issues, Foreign Policy, http://foreignpolicy.com/2015/06/12/obamas-trade-defeatimperils-u-s-credibility-in-asia/
Obamas Trade Defeat Imperils U.S. Credibility in Asia Congresss rejection of a farreaching Pacific trade pact is more than just a political blow to the president.
biggest consequences could instead be felt in Asia, where jittery U.S. allies
are already afraid that Washington is neglecting the region
while China continues to expand its economic and military
influence there . The potential demise of the Trans-Pacific Partnership (TPP) would further
embolden Pacific leaders who believe their countries would be
better off siding with China than with a United States increasingly seen as
rudderless and disengaged. This will be a blow to American
credibility beyond just trade , Michael Green, an Asia expert at the Center for Strategic
and International Studies, told Foreign Policy. Asian leaders will question whether
the American political system has the ability to implement the
Asia pivot.
TPP key to successful pivot, US political and economic leadership in asia thumpers
and alt causes are a reason TPP matters MORE
Hudson, 6/12/15 John, senior reporter at Foreign Policy and co-author of the
magazine's The Cable blog where he reports on diplomacy and U.S. national security
issues, Foreign Policy, http://foreignpolicy.com/2015/06/12/obamas-trade-defeatimperils-u-s-credibility-in-asia/
Since the beginning of his presidency, Obama
primacy across a region that covers 40 percent of the worlds gross domestic product.
The sprawling pact one of the biggest trade deals in the world was also meant to forge
greater economic alliances with Asian partners that would in turn
en hance Americas political standing in the region . Experts fear that the
administrations failure to get the pact through Congress will only serve to benefit China. If
to fill it , Scott Snyder, director of the U.S.-Korea policy program at the Council on Foreign Relations,
told FP. As an example, Snyder noted Chinas success in establishing the Asian Infrastructure Investment Bank (AIIB), a multilateral financial institution Beijing
formed in 2014. The United States had long sought to satisfy Asias growing infrastructure needs through the
World Bank, but in the last year, Beijing has succeeded in making the AIIB a major player throughout the
region. Key American allies like Germany, Britain, and France have joined the bank, which has an estimated $100 billion in assets. Another
factor that plays into Chinas favor is the increasing irrelevance of the World Trade Organization,
according to Mireya Solis, a senior fellow at the Brookings Institution. Historically, the WTO has been the
go-to body to set the rules on multilateral trade and investment. But for the last 20 years, political disputes
at the WTO have rendered it largely futile, leaving regional clusters of nations to set the rules
on key issues like intellectual property, telecommunications, and transportation. TPP provided a
major opportunity for the United States to integrate its economy into
this cluster of Asian countries. Without it, Beijings geographical
proximity will help China consolidate its economic power
throughout the region. If we dont write the rules on trade,
China will, Solis wrote in a piece for the think tank. Moreover, we will have no way to
encourage China to move away from its mercantilistic practices. In any event, if Congress ultimately fails to
grant Obama fast-track legislation, it could do lasting damage to a
including Secretary of State John Kerry, have regularly attended these forums, which were given far less value during the George W. Bush and Bill Clinton
presidencies. The
second pillar of strategy is raising Americas military profile in the region. On this front, its
a mixed bag. The United States has increased military cooperation with Japan and Australia when it
comes to air power and basing, but U.S. allies remain jittery because Beijings defense budget has
increased by 10 percent every year as China buys a laundry list of military hardware. The third pillar is greater economic engagement ,
which seems far less likely now than it did before Fridays vote. If the president cant get a trade agreement through, it will
prestige could linger long after he leaves office in January 2017. With U.S. regional allies
anxious about China's rise and willingness to project military power, Obama has made what is known as his
"Asian
pivot" -- an increase in U.S. economic, military and diplomatic resources to the region -- a central foreign policy priority. The
TPP is a cornerston e of that process and is meant ensure the world's most dynamic emerging
market evolves into a rules-based system that benefits all nations, and it's meant to check China's ability
to bully smaller ones, such as America's friends in Southeast Asia. But if the TPP is thwarted, U .S.
credibility in Asia will suffer , and allies will again wonder whether
Obama's assurances that the United States will remain an essential Pacific power and
guarantor of security in the region will be fulfilled. On Monday night, House Republicans appeared
to be buying time as they planned to add an extension for a vote on trade adjustment assistance until July 30. " You are either in or you
are out ," stressed Singapore Foreign Minister K. Shanmugam at the Center for Strategic and
International Studies in Washington on Monday, assessing the implications of a busted trade agreement for the U.S.
role in Asia. "It's very, very serious. The President wants it, everybody knows this is important, and you
can't get it through . How credible are you going to be ? The world doesn't wait. Not even for the
United States." A stern warning from an Asian ally Shanmugam's remarks, coming from a senior official of an
influential ally fully invested in Obama's policy of rebalancing U.S. power toward Asia, represented a
stunning warning to the United States.
Failure to pass the TPP will deck the pivot, US leadership, Japanese econ, Alliance,
trade liberalization and boosts Chinese regional dominance.
Economist 3-28-15. www.economist.com/news/asia/21647330-why-whiff-panic-has-enteredamericas-pacific-trade-negotiations-whats-big-deal
Mr Krugman is wrong there. Failure
with Europe. In his state-of-the-union speech to Congress in January, Barack Obama dwelt on the worlds fastest-growing region, ie, Asia and
the Pacific. The TPP has also become central to Americas most important alliance in Asia, with Japan.
Concluding it would show that the two countries can overcome the trade irritants that have always tested
the relationship. It is also seen as a vital part of Mr Abes strategy to shake the Japanese economy out of
its prolonged torpor, in part by forcing structural reform upon it . This week Mr Obama confirmed an invitation to Mr Abe
to the White House on April 28th. Mr Abe will also make a speech to Congress. But an inability to conclude the TPP, combined
with renewed difficulties over moving a controversial American marine base on the southern Japanese
island of Okinawa, could make the inevitable professions of eternal friendship ring a little hollow. More
broadly, so would another central boast of Mr Obamas diplomacy, the pivot or rebalancing of
American interests towards Asia. Diplomatically, this has always looked a little perfunctory, as crises in the Middle East and Europe
have distracted America. The military component has so far not seemed very significant. And so more and more emphasis has
been placed on the economic elementthe TPP. Having advertised it as a symbol of their countrys
enduring role as a regional leader, Americans can hardly complain if other countries choose to interpret it
that way. Yet when Mr Obama made his pitch in his state-of-the-union speech for support for TPA, he did not make the argument as
one about global trade, the Japanese alliance or rebalancing to Asia. Rather, he argued it was needed to protect the interests
of American workers and businesses against strategic competition from China , which, he said, wants to
set the rules in the region. China is at present excluded from TPP, but is engaged in talks with 15 other countries, including the ten
members of the Association of South-East Asian Nations, as well as India and Japan, on what looks like a rival trade agreement, known as the
RCEP. China has long suspected that the TPP is designed to keep it outone part of an American policy of containment. Why, for example, its
scholars ask, is Vietnam included? Its economy, too, is lacking in transparency and distorted by state-owned industry. The zero-sum illusion So
the struggle to complete trade agreements seems to have become yet another area of strategic competition
between America and China as they tussle for regional influence . As with the AIIB fiasco, this is unwarranted: both
countries would gain from the boost to the global economy that the TPP and RCEP would provide. And China is free to join the TPP if it accepts
its standards, which it has not ruled out. The dream is that, in the end, the overlapping trade pacts will merge in a broad free-trade area including
both America and Chinaunder American-style rules. So each should be cheering the others efforts on. Failure to complete the TPP
would be a serious defeat for American diplomacy for many reasons. Portraying it as a way of countering
China risks adding an unnecessary one: that it would look like a Chinese victory.
unique opportunity to prove these words true by resolving their differences over the Trans-Pacific
Partnership (TPP). The 12 Asia-Pacific economies in the TPP negotiations are working toward a comprehensive, high-standard, 21st century
trade agreement. A TPP deal
would give a significant boost to global growth and jobs and help
prize that has eluded the two countries for decades as they
have sparred over trade and, more recently, pursued FTAs with other countries. The
stakes for both Japan and the United States could not be higher . First, the economic
benefits of a successful TPP agreement would be substantial .
The Peterson Institute for International Economics has estimated the annual income gains to the United States and
Japan by 2025 at $76.6 billion and $104.6 billion, respectively. Second, both countries have a shared interest in
updating and upholding the rules of international trade and
investment to meet 21st century realities . Washington and Tokyo have long
been champions of intellectual property rights (IPR) protection, strong labor and environmental standards, and
transparent regulatory practices. Through TPP, they have a chance not only to strengthen
. The TPP negotiations have been slow going, with over 20 rounds and
several missed deadlines since the talks were launched four years ago. Substantial progress has been made across most of the agreements 29
chapters, but differences remain on IPR protection, state-owned enterprises disciplines, environmental standards, and market access. One of the
biggest remaining issues of importance to most countries in the room is greater access to Japans protected agriculture market. The domestic
politics of TPP are difficult for all 12 participating countries, not least Japan and the United States. Abe faces a formidable agriculture lobby and
an array of pressing policy challenges, from restarting nuclear power to carrying out structural reform under his program of Abenomics, each of
which will cost substantial political capital. For his part, President Obama faces a U.S. Congress where the leadership of his own party has made
clear they arent yet willing to give him trade promotion authority to complete TPP and where relations with the Republican leadership are toxic.
The president has been reluctant to push for TPA ahead of mid-term elections in November, when the Democratic majority in the Senate is on the
line. But despite the difficult politics, now is the time for the two leaders to spend some political capital on TPP. They should both renew their
commitment to the deal and show the flexibility needed to close the remaining gaps in the negotiating room. President Obama should signal
publicly ideally through a speech on U.S. soil before he travels to Asia in late April that TPP is
critical to his
strategy of rebalancing to the Asia Pacific and that hes willing to push Congress for
would reassure those at home and in the region who doubt his commitment to the
rebalance and to trade, and also give other TPP negotiating partners confidence that Washington will uphold its end of the bargain if they
reveal their bottom line now.
TPP vital to asia pivot and US leadership in Asia reassures regional partners and
counter-balances china - commercial diplomacy key, overcomes alt causes
Marczak and Workman 14. Jason Marczak is deputy director of the Atlantic Councils
Adrienne Arsht Latin America Center. Garrett Workman is associate director of the Atlantic
Councils Global Business and Economics Program (2014, TPA critical for US leadership in the
Pacific, Aug 1 -- http://thehill.com/blogs/congress-blog/foreign-policy/213955-tpa-critical-forus-leadership-in-the-pacific)
Securing U.S. economic and strategic leadership across the Pacific depends on effective
commercial diplomacy underpinned by a clear twenty-first century geopolitical strategy. Congress
should be a vital partner in the ongoing American rebalance to Asia and doing so requires the timely passage
of trade promotion authority (TPA). Only with TPAa demonstration of Congress commitment to conclude an ambitious Trans-Pacific
Partnership (TPP) agreementwill the administration be able to negotiate the best possible deal. TPA is essential so that other countries take US
positions seriously and agree to a deal that benefits US workers and consumers. If successful, TPP
TPP has become one pillar of a US policy objective to foster international support
for new rules of global economic governance. The imperative of broadening Americas
commercial ties in Latin America and Asia is critical, but the geostrategic benefits of signing a trade
Partnership (TTIP),
both sides of the Pacific are perhaps even more significant. Congress should be
mindful of TPP's major security-policy implications. Through increased economic ties, TPP will
reassure US partners across the Pacific Rim and act as a counterbalance to China. U.S. policymakers
need to accept that the United
States is the de facto TPP leader. Countries across the Western Hemisphere would
important first step is to publicly and convincingly convey the benefits of his international trade agenda to
the American people and members of Congress. Many have rightly concluded that more transparency is needed in the TPP
process. With full congressional buy-in, the TPP negotiating process can be made more transparent without sacrificing the confidentiality that
characterizes all international negotiations. Congress should see granting TPA as the best way to defend and even strengthen already high US
product safety, environmental, and labor standards in a fast-changing global economy. Multilateral
http://www.washingtonpost.com/politics/obamas-evolution-on-trade-will-put-him-at-warwith-his-party/2015/04/15/dabd42f4-ccc8-11e4-a2a7-9517a3a70506_story.html
Obama aides were initially doubtful about whether the economic benefits would justify the level of political capital and presidential attention that
Asia
and challenged then-Chinese President Hu Jintao to start playing by the rules of the emerging regional order. Over the next two
years, Mexico, Canada and Japan entered the talks, making good, administration officials said, on Obamas campaign pledge to renegotiate
NAFTA. The 12-nation pact now covers countries that represent 40 percent of the worlds gross domestic
The return of geopolitics is all around us. Civil wars in the Middle East and Russian aggression in Ukraine properly dominate the headlines.
But more quietly, a potentially more consequential strategic defeat looms for the United States : the Trans-Pacific
Partnership (TPP) may fail. Why should we care that some trade pact we have barely heard of collapses into ignominy? Quite simply: the
negotiations failure would have devastating consequences for U.S. leadership , for the deepening of key
partnerships in strategic regions, for the promotion of market reforms in emerging economies, and for the
future of the trade agenda. Consider the following: The United States would lose the ability to make the rules in
international trade. The World Trade Organization (WTO) has been unable to update the multilateral rules
on trade and investment for the past 20 years. In the meantime, global supply chains have profoundly
altered patterns of international production and trade. Deep free trade agreements (FTAs) like TPP seek to
provide new rules that match the realities of 21st century trade. They focus on the liberalization of
services that are critical to the efficient management of dispersed production chains (telecommunications,
transportation, etc.), the protection of foreign investments and intellectual property rights, and avoiding predatory
market behavior of state-owned enterprises. With the stagnation of the WTO, we have moved to a system
of decentralized competition where different clusters of countries seek to define the standards for
economic integration. As President Obama has warned, if we dont write the rules on trade, China will.
Moreover, we will have no way to encourage China to move away from its mercantilistic practices.
The rebalance to Asia will stall . TPP is the second leg (after a reorientation of military resources) of
the policy of rebalancing to Asia. As such, its fate will determine whether this strategy advances or just limps
along. If TPP fails, doubts about the staying power of the United
States will once again rear their ugly head . The signature U.S.
policy to remain vitally connected to the worlds most dynamic
economic region will come to naught . Lets not forget that prior to the advent of
TPP, the United States appeared poised to be marginalized from the process of regionalism in Asia. The
U.S.-Japan alliance will lose a critical pillar . Trade has in the past been a divisive issue for the two allies. If TPP fails, it will
demonstrate that the United States and Japan cannot move past frictions over market access in agriculture and automobiles
to work in areas such as internationalization of financial services, protection of intellectual property, and governance of the internet economy that are
central to the 21st century economy.
Successful TPP key to Asia pivot and US leadership.
Klein 3-13. [Ezra, economics reporter, "Why the Obama administration is fighting for a trade deal its liberal allies hate" Vox -www.vox.com/2015/3/13/8208017/obama-trans-pacific-partnership]
6. There's also a bigger foreign policy objective here. TPP is central
deeply appreciative of Obama's forceful statement in April 2014 that U.S. treaty commitments to its ally were "absolute" amidst rising territorial tensions between
Tokyo and Beijing. While denying that he was trying to contain China, Obama
miscalculation between China's forces and U.S. ships and aircraft deployed in the region. Fears of a military
confrontation Beijing's recently announced that it wants to build a navy that can project power
far from its own shores, at the same time that China is trading accusations with Washington over its
expansion of man-made islands among South China Sea navigational routes crucial to the global economy. There are
fears of an unintentional clash between U.S. and Chinese ships and planes
in the region.
send signals to allies and rivals. Signaling was the primary motivation behind the United Kingdoms push
for the trade agreement it signed with the United States in 1938, just before the outbreak of World War II. The British
gained little economically, but the deal bolstered the appearance of Anglo-American solidarity. Similarly, signaling was as
important as economics to the United States first-ever free-trade agreement, which was concluded with
Israel in 1985. If anyone doubts the strategic importance of trade, consider Russias reaction during the past year to the prospect of Ukraine
deepening its trade ties with the West. The global trading system also provides avenues for peaceful
China and South China seas , the crisis in Ukraine -- the strategic implications of U.S.
trade policy have rarely been clearer. For many of the countries that would be party to the TPP, the
economic benefits of the agreement are further sweetened by expectations that the United States will
become more deeply embedded in the region. And just as completing the TPP would underscore
Washingtons commitment to development and stability in Asia during a time of flux, finalizing the
Transatlantic Trade and Investment Partnership (T-TIP) would send an unmistakable signal to the world
about the strength of the U.S.-European bond -- a timely reminder, as the crisis in Ukraine has triggered
deep unease across the continent.
TPP drag on indefinitely doesnt serve the interests of Abe. His popularity , though still strong
by Japanese standards, is already declining and likely to sink further as a consumption tax hike
takes effect in April and he moves ahead on nuclear power. Abe should instruct his negotiators to
move substantially closer to TPPs principle of comprehensive
liberalization , especially on agriculture, while he and his government have the political capital to do so.
In doing this, Abe can take comfort that the near-term economic benefits of TPP
are greater than widely believed. In addition to improving Japans
long-term competitiveness , a TPP deal would give a substantial boost to
confidence , likely causing the Japanese stock market to soar as foreign
investors who have become increasingly disillusioned with
Abenomics pile back into the market. Political leaders rarely have as promising an opportunity to achieve
multiple objectives as President Obama and Prime Minister Abe have over the next few weeks. Coming together on TPP would
help create growth and jobs in both countries, uphold the global
rules-based order , and secure the two mens legacies as visionary Asia-Pacific leaders.
If one would ask what could be the most significant foreign policy initiative of US president Barack Obama
during his seven years in the White House, and may be his entire term;an obvious answer is certain to be the American Pivot to Asia. No
doubt, his administration moved Americas military presence out of Iraq as promised, charted an effective
and workable exit strategy from Afghanistan and continued to counterbalance Russias belligerence in the
Eurasian region as well as in the global stage. In the case of Iraq and Afghanistan, these measures bailed the USA out of an
enmeshing war initiated by his predecessor George W. Bush; and with regards to Russia, Obama Administrations policy marked continuation of
a conservative US bottom line: stand by the European allies.Wading through the Arab Spring, liberating Libya from the dictatorship of Gadhafi
and Egypt of Mubarak happened in response to the local churning. Therefore, the most original contribution of President
Barack Obama to the American foreign policy is the Asia Pivot, which has already started re-balancing
Asia-Pacifics political and security landscape albeit in a lower yet increasingly longer-term profile . This
policy, on the one hand, acknowledges longstanding US and Asia-Pacific relationship, and on the other, prepares
platform for future policy configurations in favour of the current world order. This article attempts to briefly
examine the key operational ingredients of the construct of Asia Pivot and tries to touch upon what implications it will have in store for smaller
and less powerful countries like Nepal. The cogs of the pivot Americas Asia Pivot involves two basic components of
trade and defense, both complementing one another. Properly explaining this policy entails understanding Asian input to the
postwar world order that saw Japan and South Korea emerge as the indispensable partners of the US-led democratic coalition. As the two Asian
powers economically progressed from the rubble of the Second World War, their trade relations with the US jumped up. Australia, another
natural US ally in the Pacific, remained a part of this equation right from the beginning, leading
eventually to the recent free trade arrangement between democratic Asia and the Americas under TransPacific Partnership. Apart from laying the foundation of political and economic transformation in the Asian continent, the Second World
War also reshaped defense relations between the US and the Asia-Pacific. American military bases in the Philippines, South Korea and Japan
guarded Asian frontiers during the Cold War, and now seek to offer deterrence to the Chinese assertion in the South China Sea and Senkaku
Islands. Giving additional impetus to its existing military engagements in the Pacific, the US in early 2013, moved its 3,000 Marines to a base
near the city of Darwin,Australia. Major operational forces of the Asia Pivot are Japan, South Korea and Australia. While China is treated as a
competing power and a likely challenger, confusion persists regarding the enlistment of India despite both sides willing. The most
immediate motivation behind Asia Pivot seems to be the Obama Administrations desire to end the
George Bush era fixation with the Middle East. Moving away from overstretching hard-power in the
name of fighting terrorism, Barack Obama tries to balance his foreign policy moves by a careful mixture
of hard and soft powers, with an overarching objective of preserving the postwar world order, in which
the USA is left as the lone superpower.
hold fast to its Asia-Pacific pivot strategy even as newer threats like the rise of the Islamic State and Russias aggression in
Europe impose new spending demands on various U.S. agencies. The Obama administrations $4 trillion budget for 2016
includes $619 billion for a broad set of defense programs and another $54 billion for all the U.S.
intelligence agencies to meet both long-term challenges and more immediate threats that have emerged in the last two years.
The State Department sought another $50.3 billion an increase of 6 percent from last year including $7 billion for ongoing operations in the
Middle East and Central Asia, and $8.6 billion for international security assistance that pays for a range of programs including counter-narcotics,
peacekeeping, and training foreign militaries. Obamas budget calls for raising taxes on multinational corporations and rich Americans while
overhauling the countrys immigration system to boost the economy with newly legal workers. The spending proposal, which ignores caps set by
law, will likely face a barrage of opposition in Congress, where theres no consensus on how to pay for increasing costs without raising revenues.
Speaking at the Homeland Security Departments headquarters Monday, Obama said his spending plan recognizes that our economy flourishes
when America is safe and secure. He said it aims to support American troops, bolster U.S. borders from threats, and help confront global crises
including the Islamic State and Russias violent otverreach in Ukraine. Underscoring the focus on Asia, Secretary of State John
Kerry, in his departments budget submission, called the pivot to the Asia-Pacific region a top priority for
every one of us in [Obamas] administration. And at the Pentagon, Deputy Defense Secretary Bob Work
said the focus on Asia remains at the top of the militarys five main priorities for the upcoming year . At
the top of the list, Work told reporters, are efforts to continue to rebalance to the Asia-Pacific region. We
continue to do that. The Obama administration said the Pentagons budget is driven by the 2014 Quadrennial Defense Review, a oncein-four-year strategy document that mostly focused American forces toward the Asia-Pacific region while aiding allies in developing defenses to
deal with regional crises on their own. The strategy calls for spending heavily on long-range bombers, new fighter aircraft like the F-35 Joint
Strike Fighters, and naval vessels, as well as cybersecurity efforts. The Pentagons budget includes $534.3 billion for regular Defense
Department operations an 8 percent increase over what Congress approved for 2015 and an additional $50.9 billion for Overseas
Contingency Operations that pays for ongoing wars and conflicts. That fund was reduced from the $64.2 billion Congress approved for last year,
largely because of the drawdown of forces from Afghanistan. If your budget is a truest indicator of where your strategy is
headed, then what the budget is telling us is a pivot to [the] Asia-Pacific remains the Obama
administrations focus while the current conflicts in Iraq, Syria, and in Ukraine are more near-term challenges that are funded on an
annual basis, said Todd Harrison, a budget analyst at the Center for Strategic and Budgetary Assessments.
New Security Strategy doubles down on the pivot shift to diplomatic emphasis
supercharges importance of TPP.
Shen 2-10. [Dingli, rofessor and associate dean at Institute of International Studies, Fudan University, US dominance not right way of
pivot to Asia China Daily -- usa.chinadaily.com.cn/opinion/2015-02/10/content_19535923.htm]
The US government has just released its new National Security Strategy which stresses four main features, namely
national security, economic development, American values, and the international order. There is nothing dramatically new in the first three, as US
presidents always emphasize security, the economy, and democracy, the only difference is the priority given them depending on the circumstances
at different times. However, this time, the White House has added the fourth element to this document, the
international order. It is good that the US seems more willing to accommodate the United Nations and other multilateral organizations to
promote world peace and security, as well as global economic prosperity. In the face of the US' domestic situation, the Obama administration has
to focus more on partnerships and cooperation for his remaining two years in the White House. The new National Security
Strategy, however, has not forgotten the US' "rebalancing to Asia and the Pacific ". The Obama administration's first
National Security Strategy of May 2010 used the term "rebalancing" four times, but none of them applied to the Asia-Pacific region. Indeed,
Obama first raised the notion of rebalancing to the Asia-Pacific in 2011. However, given the opportunity presented by drawing
up a new National Security Strategy, the White House national security team has reaffirmed the US'
commitment to rebalancing to the region. According to the latest National Security Strategy, the US will
employ a combination of tools in its rebalancing, including "increased diplomacy, stronger alliances and
partnerships, expanded trade and investment, and a diverse security posture". In this context, the US National
Security Advisor Susan Rice has announced that the Chinese, Japanese, South Korean and Indonesian leaders have been invited to visit the US
US Air Force Embraces Sequestration and Asia Every problem represents an opportunity. For the USAF,
the sequester problem is being used to pivot to Asia. The decision of the U.S.
House of Representatives to hurtle head-long into a government shutdown highlights the current reluctance of the U.S. government to develop
any kind of coherent plan for funding its commitments. While the shutdown itself likely wont have a long-term effect on military readiness, the
already-existing sequester and the upcoming debt ceiling fight just might. At the same time, the U.S. military is undergoing a significant strategic
and geographic shift. Combining these two projects seems like a bad idea, but then, as they say, every problem represents an opportunity. Last
week, at the Air Force Associations Air and Space Conference, questions about the impact of the sequester on the future of American airpower
loomed large. The Pacific Pivot and the associated development of AirSea Battle (ASB), commits the U.S. Air Force (USAF) to an
extensive set of doctrinal and procurement targets, targets that the sequester may endanger. Its hardly
unreasonable to be concerned about how cuts in funding (especially haphazard cuts like the sequester) could
affect the ability of the service to meet these targets. However , with respect to the platforms that
will form the core of the USAFs contribution to the Pacific Pivot, the Air Forces commitment appears
to
remain strong . Despite the growing concerns about the F-35, the service has not wavered in its insistence that large
to maintaining air supremacy. Similarly, Air Force leaders have consistently maintained that
the K-46 tanker and the Long Range Strike Bomber (LRSB) will form the foundation of USAF
capabilities long into the 21st century. All of these platforms have obvious applicability to
the USAFs ability to project force along the Pacific Rim. Services are often
saddled with weapons and missions that they dont want, but that they must accept because of
Congressional pressure, executive pressure or the demands of inter-service comity. Sometimes, budget crunches can provide
an opportunity for services to discard their unwanted bits. Most notably, the Air
Force has suggested ridding itself of the A-10 Warthog , an attack aircraft that is exceptionally popular with the Army but less
so with the USAF. The Air Force considers the A-10 problematic because it is a single-mission aircraft
designed to perform a job that the USAF doesnt consider central or critical to
its mission . The combination of the sequester and the Pacific Pivot may finally give the USAF the
momentum it needs to dispose of the A-10 permanently, redirecting its efforts
towards more modern, multi-mission aircraft. Interestingly enough, some analysts
have also suggested major cuts
in the USAFs current bomber fleet, including retirement of the B-1B force and possibly of the B-2
allow the Air Force to concentrate its efforts on the next generation of
strike aircraft, but would certainly detract in the near term from the project of re-developing maritime roles for the USAFs bomber force .
The commitment of the service to drones remains in some question. General Mike Hostage noted that Predators and Reapers are useless in a
contested environment, which is precisely the environment the Air Force expects to find in a conflict with China. The Air Force has also made
its lack of enthusiasm for the Global Hawk clear, which would appear altogether sensible were it not for the bevy of similar problems associated
with the F-35. In
short, while the sequester will continue to have an effect on how the USAF pivots, it also
days after Mr Abe reiterated in America that TPP was crucial for raising Japans agricultural competitiveness and helping it
down. Each side blamed the other, though Americans continue to suspect
adjust to an ageing society, TPP talks between the two countries abruptly broke
that the problem is not Mr Abes own commitment but the weight the farmers carry with his bureaucrats. The
best offer may never be good enough for Congress, so without TPA there is unlikely
to be TPP. Mr Froman, the trade tsar, puts TPP into a dauntingly ambitious context. He calls it central to
Americas pivot to Asia , a chance to show the countrys commitment
to creating institutions that moderate territorial disputes , and an
opportunity to show emerging economies (meaning China) what economic rules the global
economy should follow . At a time when there is uncertainty about the
direction of the global trading system , TPP can play a central role in
setting rules of the road for a critical region in flux, he says. The flipside of this is
that failure becomes an even bigger risk , which Mr Froman acknowledges. Perhaps in an effort to prod a
somnolent, introspective Congress into action, he makes the dramatic claim that failure could mean America would forfeit
its seat at the centre of the global economy. Many pundits in Washington agree
that American leadership in Asia is on the table . Michael Green of the Centre for
Strategic and International Studies says TPP failure would undermine the impression of the
United States as a Pacific power and look like an abdication of
leadership . It would also take pressure off Japan and China to reform their economies . Mireya Sols,
a Japan expert at the Brookings Institution, says it would be a devastating blow to the
United States credibility . Those views are echoed in East Asia. Mr Tay in Singapore says TPP
failure would be a disaster: If the domestic issues of these two countries cannot be
resolved, there is no sense that the US-Japan alliance can provide any
kind of steerage for the region. Deborah Elms, head of the Singapore-based Asian Trade Centre, suggests that
so far the American pivot has manifested itself mainly as an extra 1,000 marines stationed in Australia. Without TPP, all the
pivot amounts to is a few extra boots on the ground in Darwin, she says.
Even members of Americas armed forces are worried . As one senior serving officer in the Pacific
puts it, the TPP unites countries that are committed to a trade-based
future , transparency and the rule of law. It is the model that the United States and Europe have
advanced versus that advanced by China. It is an opportunity to move the arc of Chinese
development, or identify it as a non-participant. Yet when Mr Obama mentions TPP, he talks mostly about protecting
American jobs rather than safeguarding Americas place in the world. The president has never fully put his back into
forcing a congressional vote on TPA . There is still time for him and Mr Abe to
rescue the trade talks. But unless Mr Obama leads from the front, Americas
own leadership in the Pacific will seem less convincing than he has repeatedly
promised.
Securing U.S. economic and strategic leadership across the Pacific depends on effective
commercial diplomacy underpinned by a clear twenty-first century geopolitical strategy. Congress
should be a vital partner in the ongoing American rebalance to Asia and doing so requires the
timely passage of trade promotion authority (TPA). Only with TPAa demonstration of Congress
commitment to conclude an ambitious Trans-Pacific Partnership (TPP) agreementwill the
administration be able to negotiate the best possible deal. TPA is essential so that other countries
take US positions seriously and agree to a deal that benefits US workers and consumers. If successful, TPP could catapult
the United States into a new era of partnership with Latin America and countries across the AsiaPacific. As the fastest-growing U.S. trade partner, Latin Americas presence in a successful TPP
could lead to a new era of economic integration in the hemisphere. Such an agreement could broaden
U.S. relationships with economies on the rise and with markets close to U.S. ports. Expanding
close trade and investment relationships with Mexico, Canada, Chile, and Peru will provide
immediate benefits and job-creating growth in the United States. Launched in 2004 as a small but forwardthinking agreement to liberalize trade and investment, TPP has grown to include twelve member countries that represent 40 percent of
global GDP, 26 percent of global trade, and 40 percent of US trade. Along with the Transatlantic Trade and
Investment Partnership (TTIP), TPP has become one pillar of a US policy objective to foster
international support for new rules of global economic governance. The imperative of
broadening Americas commercial ties in Latin America and Asia is critical, but the geostrategic benefits of
signing a trade agreement with eleven partners on both sides of the Pacific are perhaps even more significant. Congress should be mindful of
TPP's major security-policy implications. Through
contingencies like ISIS have dictated the tempo and focus of deployed troops, they have, according to Deputy Secretary Work,
not hindered the overall rebalance, which largely continues apace. What are some of the most
tangible military steps taken since 2011? Work explains (emphasis added): By 2020, both the Navy and the Air Force will have 60
percent of their forces in the Asia Pacific region. We may not have as many forces as we would like, but 60 percent of the forces will
be in the Asia Pacific region. At the same time, PACOM is regaining Army units that were rotating through Afghanistan, and theyre
returning with all of their equipment now, such as attack aviation assets like Apaches in Korea. The army will have more than 100,000 soldiers
when all is said and done in the Asia Pacific region, including those on the West Coast in Hawaii and Alaska and Japan. And at the same time,
the Marines are distributing and having four powerful Marine air-ground task force[s] geographically dispersed
around the Pacific. All of those plans continue apace, regardless of how
The four biggest construction projects since the end of the Cold War
are going on in the Pacific. Theres Camp Humphreys in Korea, where the Army is moving south of Seoul. Thats a $10 billion construction
project. The Futenma Replacement Facility in Okinawa, which will allow the Marines to concentrate into the North and become more politically
sustainable on the island is now moving forward. Guam is already starting. That will ultimately house 5,000 Marines at a new base there. And
Iwakuni, Japan, what an incredible place. Literally, the Japanese government shaved the top off of a nearby mountain, conveyored the dirt down
to a bay, put it on barges, and went around and reclaimed an enormous part, expanding the area so that the Navys carrier air wing thats right now
in Atsugi can move down there. The Asia-Pacific
military rebalance to the Asia-Pacific has continued on course . Amid the loud headlines out of Iraq, Syria,
and Ukraine, it is easy to forget that much of U.S. foreign policy is still being developed in anticipation of
a Pacific Century. While unexpected contingencies like ISIS have dictated the tempo and focus of
deployed troops, they have, according to Deputy Secretary Work, not hindered the overall rebalance, which
What are some of the most tangible military steps taken since 2011? Work explains
(emphasis added): By
2020, both the Navy and the Air Force will have 60 percent of their forces in the Asia Pacific
region. We may not have as many forces as we would like, but 60 percent of the forces will be in the Asia Pacific region. At the same time,
PACOM is regaining Army units that were rotating through Afghanistan, and theyre returning with all of their equipment now, such
as attack aviation assets like Apaches in Korea. The army will have more than 100,000 soldiers when all is said and done in
the Asia Pacific region, including those on the West Coast in Hawaii and Alaska and Japan. And at the same time, the Marines are
distributing and having four powerful Marine air-ground task force[s] geographically dispersed around the
Pacific. All of those plans continue apace, regardless of how stressed we
are in the budget. The four biggest construction projects since the end of the Cold War
are going on in the Pacific. Theres Camp Humphreys in Korea, where the Army is moving south of Seoul. Thats a $10 billion
construction project. The Futenma Replacement Facility in Okinawa, which will allow the Marines to concentrate into the North and become
more politically sustainable on the island is now moving forward. Guam is already starting. That will ultimately house 5,000 Marines at a new
base there. And Iwakuni, Japan, what an incredible place. Literally, the Japanese government shaved the top off of a nearby mountain,
conveyored the dirt down to a bay, put it on barges, and went around and reclaimed an enormous part, expanding the area so that the Navys
carrier air wing thats right now in Atsugi can move down there. The Asia-Pacific also remains first priority for the United
States most sophisticated military hardware. This includes the F-35 Joint Strike Fighter, a
deployment of the Zumwalt destroyer class by 2018, and more THAAD and Patriot batteries to key locations. This also includes the Navys new
P-8 maritime patrol aircraft and expanded Army electronic warfare capabilities that will be focused heavily in Korea.
wonder to
what extent the crisis will influence the U nited S tates pivoting to the Asia-Pacific. This question calls for
cool-headed observation and precise assessment. The Ukraine crisis has undeniably distracted the
United States strategically. On the surface, it is composed and continues high-profile involvement in the Asia-Pacific. Yet
it is actually
restless at heart. The United States has become deeply involved in the Ukraine crisis, engaging in a sustained rivalry with Russia. On one
hand, the US stubbornly confronts Russia, imposing pressures through sanctions. Furthermore, it has assisted Ukraines interim government, has
enhanced military support for East European allies, as well as strengthened NATOs collective defense; it has terminated NATO cooperation with
Russia; and has helped the EU reduce reliance on Russian energy supplies. On the other hand, it has bargained continuously with Russia. The
heads of state of the two countries have talked repeatedly on the phone, and their foreign ministers have met frequently, trying to strike a deal.
The US is obviously worried about the evolution of the Ukraine crisis. Even so, it is important to see that the US is striving to
simultaneously take care of the Asia-Pacific, Middle East, and Eastern Europe. Among them, the Middle East is
priority of priorities, whose strategic values keep appreciating. The following three points are proof.
Firstly, the US continues to strengthen military deployment in the Asia-Pacific. The Wall Street
Journal recently published a story titled US Marines Rebuilding Capacity in Asia-Pacific, disclosing that, with
stressed that the US would support its NATO allies in conflicts with Russia, yet it has no intention to
increase military presence in Europe. The reason is very simple in a larger context and in the long term - the AsiaPacific is the most important area of interests for the United States. Furthermore, President Obama will make a
high-profile trip to four Asia-Pacific countries (Japan, Republic of Korea, the Philippines, Malaysia), where he will further emphasize the
strategic adherence to rebalancing to the Asia-Pacific. Thirdly,
intervene
in marine disputes in East Asia, continuing to side with its allies. On the South China Sea issues, it connives at
Philippine provocations, including the latters logistical supplies for the stranded naval vessel and occupation of the Renai Reef of Chinas
Nansha Islands. While instigating the Philippines to stage the farce of proposing international arbitration, it has persistently been bad-mouthing
Chinas rightful responses to safeguard its territorial integrity. On the Diaoyu Islands dispute in the East China Sea, it has obviously been
loosening the grip on the dangerous potential of an increasingly rightist Japan. It turned a blind eye to Shinzo Abes rightist stunts, hastened the
pace of revising the Guidelines for US-Japan Defense Cooperation and enhances US-Japan joint operations. It is necessary to notice that the
international strategic impacts of the Ukraine crisis are mainly on big-power relations, including changes in principal contradictions, but not on
geopolitics. Specifically, the Ukraine crisis has resulted in the relative escalation of the contradictions between Russia and major western powers.
US-Russia contradictions have sharpened and become prominent, while the contradictions between China and major western powers have
relatively eased. Furthermore, Sino-US contradictions have more or less loosened, appearing less prominent. The crisis impacts on the
US pivoting to the Asia-Pacific, however, are nothing more than a strategic
reverse
the US strategy of rebalancing to the Asia-pacific. The eastward shift of the center of gravity is a preset
guideline of the Obama administration, and has been reflected in the latest Quadrennial Defense Review.
There is a strong call for a massive military assault on ISIS, as well as a "Pivot to Middle East." So under this
circumstance, it seems legitimate to ask whether America can maintain it strategic rebalance toward Asia , and
what the implication is for China. It takes deeper analysis to give good answers to those questions. First, how serious is the Islamic State's threat
to America? Do people really believe that it just cannot be overstated, as Senator Feinstein put it? As a matter of fact, U.S. intelligence
agencies, as recently reported, still see a lot of uncertainty in the danger that ISIS poses . According to some experts,
ISIS's ability to carry out complex, large-scale attacks in America and other Western countries is currently limited. So
it is one thing that some people compare ISIS to al-Qaeda and warn against the threat of terrorist attacks; it is quite another that America should
or should not be on extremely high alert. Maybe it is understandable that Obama hasn't rushed into announcing a war against the
Islamic State. He has reason to believe that his principle of "not
Even if America does need to send some ground troops to Iraq to fight ISIS, let's remember that it was during the
process of withdrawing U.S. troops from Iraq and Afghanistan that Obama began to implement his rebalance toward
Asia, meaning that having troops fighting in other places doesn't
wonder to
what extent the crisis will influence the U nited S tates pivoting to the Asia-Pacific. This question calls for
cool-headed observation and precise assessment. The Ukraine crisis has undeniably distracted the
United States strategically. On the surface, it is composed and continues high-profile involvement in the Asia-Pacific. Yet
it is actually
restless at heart. The United States has become deeply involved in the Ukraine crisis, engaging in a sustained rivalry with Russia. On one
hand, the US stubbornly confronts Russia, imposing pressures through sanctions. Furthermore, it has assisted Ukraines interim government, has
enhanced military support for East European allies, as well as strengthened NATOs collective defense; it has terminated NATO cooperation with
Russia; and has helped the EU reduce reliance on Russian energy supplies. On the other hand, it has bargained continuously with Russia. The
heads of state of the two countries have talked repeatedly on the phone, and their foreign ministers have met frequently, trying to strike a deal.
The US is obviously worried about the evolution of the Ukraine crisis. Even so, it is important to see that the US is striving to
simultaneously take care of the Asia-Pacific, Middle East, and Eastern Europe. Among them, the Middle East is
depreciating because the US is approaching energy independence. Eastern Europe has been appreciating in the short-term
due to the overnight worsening of the Ukraine crisis. And finally, as for the
priority of priorities, whose strategic values keep appreciating. The following three points are proof. Firstly,
the US continues to strengthen military deployment in the Asia-Pacific. The Wall Street Journal
recently published a story titled US Marines Rebuilding Capacity in Asia-Pacific, disclosing that, with
stressed that the US would support its NATO allies in conflicts with Russia, yet it has no intention to
increase military presence in Europe. The reason is very simple in a larger context and in the long term - the AsiaPacific is the most important area of interests for the United States. Furthermore, President Obama will make a
high-profile trip to four Asia-Pacific countries (Japan, Republic of Korea, the Philippines, Malaysia), where he will further emphasize the
strategic adherence to rebalancing to the Asia-Pacific. Thirdly,
in marine disputes in East Asia, continuing to side with its allies. On the South China Sea issues, it connives at Philippine
provocations, including the latters logistical supplies for the stranded naval vessel and occupation of the Renai Reef of Chinas Nansha Islands.
While instigating the Philippines to stage the farce of proposing international arbitration, it has persistently been bad-mouthing Chinas rightful
responses to safeguard its territorial integrity. On the Diaoyu Islands dispute in the East China Sea, it has obviously been loosening the grip on the
dangerous potential of an increasingly rightist Japan. It turned a blind eye to Shinzo Abes rightist stunts, hastened the pace of revising the
Guidelines for US-Japan Defense Cooperation and enhances US-Japan joint operations. It is necessary to notice that the international strategic
impacts of the Ukraine crisis are mainly on big-power relations, including changes in principal contradictions, but not on geopolitics.
Specifically, the Ukraine crisis has resulted in the relative escalation of the contradictions between Russia and major western powers. US-Russia
contradictions have sharpened and become prominent, while the contradictions between China and major western powers have relatively eased.
Furthermore, Sino-US contradictions have more or less loosened, appearing less prominent. The crisis impacts on the US
reverse
the US strategy of rebalancing to the Asia-pacific. The eastward shift of the center of gravity is a preset
guideline of the Obama administration, and has been reflected in the latest Quadrennial Defense Review.
agencies, as recently reported, still see a lot of uncertainty in the danger that ISIS poses . According to some experts,
ISIS's ability to carry out complex, large-scale attacks in America and other Western countries is currently limited. So
it is one thing that some people compare ISIS to al-Qaeda and warn against the threat of terrorist attacks; it is quite another that America should
or should not be on extremely high alert. Maybe it is understandable that Obama hasn't rushed into announcing a war against the
Islamic State. He has reason to believe that his principle of "not
Even if America does need to send some ground troops to Iraq to fight ISIS, let's remember that it was during the
process of withdrawing U.S. troops from Iraq and Afghanistan that Obama began to implement his rebalance toward
Asia, meaning that having troops fighting in other places doesn't
not I repeat, will not come at the expense of the Asia-Pacific . 9 U.S. Secretary of Defense Chuck Hagel has
reaffirmed this commitment on several occasions, including at the AUSMIN talks in Sydney in June 2014, when Hagel signed the
Forces Posture Agreement that will see US military assets expand in Australia for the next 25 years.10 This reassurance is important,
as countries in Asia have come to depend on the United States to provide security and stability in the
region. If they believe the United States is no longer capable of fulfilling this role, the chances
can be correlated to the degree of collective certainty about the US-led regional hierarchy . East Asian
stability and instability has been determined by U.S. assurances, self-confidence, and commitment to maintaining its
primary position in the regional hierarchy; the perceptions and confidence of regional states about US commitment;
and the reactions of subordinate states in the region to the varied challengers to the regional hierarchical order. 4. Hierarchy and the East Asian
security order Currently, the regional hierarchy in East Asia is still dominated by the United States. Since the 1970s, China has increasingly
claimed the position of second-ranked great power, a claim that is today legitimized by the hierarchical deference shown by smaller subordinate
powers such as South Korea and Southeast Asia. Japan and South Korea can, by virtue of their alliance with the United States, be seen to occupy
positions in a third layer of regional major powers, while India is ranked next on the strength of its new strategic relationship with Washington.
North Korea sits outside the hierarchic order but affects it due to its military prowess and nuclear weapons capability. Apart from making greater
sense of recent history, conceiving of the US' role in East Asia as the dominant state in the regional hierarchy helps to clarify three critical
puzzles in the contemporary international and East Asian security landscape. First, it contributes
now the key to regional order. The vital nature of the Sino-American relationship stems from these two states' structural positions. As discussed earlier, China is the primary second-tier power in
the regional hierarchy. However, as Chinese power grows and Chinese activism spreads beyond Asia, the United States is less and less able to see China as merely a regional power witness the
growing concerns about Chinese investment and aid in certain African countries. This causes a disjuncture between US global interests and US regional interests. Regional attempts to engage and
socialize China are aimed at mediating its intentions. This process, however, cannot stem Chinese growth, which forms the material basis of US threat perceptions. Apprehensions about the
growth of China's power culminates in US fears about the region being lost to China, echoing Cold War concerns that transcribed regional defeats into systemic setbacks.15 On the other hand,
the US security strategy post-Cold War and post-9/11 have regional manifestations that disadvantage China. The strengthening of US alliances with Japan and Australia; and the deployment of
US troops to Central, South, and Southeast Asia all cause China to fear a consolidation of US global hegemony that will first threaten Chinese national security in the regional context and then
stymie China's global reach. Thus, the key determinants of the East Asian security order relate to two core questions: (i) Can the US be persuaded that China can act as a reliable regional
stakeholder that will help to buttress regional stability and US global security aims;16 and (ii) can China be convinced that the United States has neither territorial ambitions in Asia nor the
desire to encircle China, but will help to promote Chinese development and stability as part of its global security strategy? (Wang, 2005). But, these questions cannot be asked in the abstract,
outside the context of negotiation about their relative positions in the regional and global hierarchies. One urgent question for further investigation is how the process of assurance and deference
operate at the topmost levels of a hierarchy? When we have two great powers of unequal strength but contesting claims and a closing capabilities gap in the same regional hierarchy, how much
scope for negotiation is there, before a reversion to balancing dynamics? This is the main structural dilemma: as long as the United States does not give up its primary position in the Asian
still is
evolving security order, I have suggested that the United States is the central force in constituting regional stability and order. The major patterns
of equilibrium and turbulence in the region since 1945 can be explained by the relative stability of the US position at the top of the regional
hierarchy, with periods of greatest insecurity being correlated with greatest uncertainty over the American
commitment to managing regional order. Furthermore, relationships of hierarchical assurance and hierarchical deference explain the unusual
character of regional order in the post-Cold War era. However, the greatest contemporary challenge to East Asian order is the potential conflict
between China and the United States over rank ordering in the regional hierarchy, a contest made more potent because of the inter-twining of
regional and global security concerns. Ultimately, though, investigating such questions of positionality requires conceptual lenses that go beyond
basic material factors because it entails social and normative questions. How can China be brought more into a leadership position, while being
persuaded to buy into shared strategic interests and constrain its own in ways that its vision of regional and global security may eventually be
reconciled with that of the United States and other regional players? How can Washington be persuaded that its central position in the hierarchy
must be ultimately shared in ways yet to be determined? The future of the East Asian security order is tightly bound up
with the durability of the United States' global leadership and regional domination. At the regional level, the main scenarios of
disruption are an outright Chinese challenge to US leadership, or the defection of key US allies, particularly Japan. Recent history suggests, and
the preceding analysis has shown, that challenges to or defections from US leadership will come at junctures where
it appears that the US commitment to the region is in doubt, which in turn destabilizes the hierarchical order. At
the global level, American geopolitical over-extension will be the key cause of change. This is the one factor that could lead to
both greater regional and global turbulence, if only by the attendant strategic uncertainly triggering off regional challenges or
defections. However, it is notoriously difficult to gauge thresholds of over-extension. More positively, East Asia is a region that has adjusted to
previous periods of uncertainty about US primacy. Arguably, the regional consensus over the United States as primary state in a system of benign
hierarchy could accommodate a shifting of the strategic burden to US allies like Japan and Australia as a means of systemic preservation. The
alternatives that could surface as a result of not doing so would appear to be much worse.
Asia Trade/Econ
Overwhelms all constraints on conflict
Auslin, 9 (Michael, Weekly Standard, 2/5,
http://www.weeklystandard.com/Content/Public/Articles/000/000/016/115jtnqw.asp)
AS THEY DEAL WITH a collapsing world economy, policymakers in Washington and around the globe must not forget that when
a
depression strikes, war can follow. Nowhere is this truer than in Asia, the most heavily armed region on
earth and riven with ancient hatreds and territorial rivalries. Collapsing trade flows can
lead to political tension, nationalist outbursts, growing distrust, and ultimately, military miscalculation. The
result would be disaster on top of an already dire situation. No one should think that Asia is on the verge of conflict. But it is also
important to remember what has helped keep the peace in this region for so long. Phenomenal growth rates in
Japan, South Korea, Hong Kong, Singapore, China and elsewhere since the 1960s have naturally turned national attention
inward, to development and stability. This has gradually led to increased political confidence, diplomatic initiatives,
and in many nations the move toward more democratic systems. America has directly benefited as well, and not merely from
years of lower consumer prices, but also from the general conditions of peace in Asia. Yet policymakers need to remember that even during these
decades of growth, moments of economic shock, such as the 1973 Oil Crisis, led to instability and bursts of terrorist activity in
Japan, while the uneven pace of growth in China has led to tens of thousands of armed clashes in the poor interior of the country. Now imagine
such instability multiplied region-wide. The economic collapse Japan is facing, and China's potential slowdown, dwarfs any
previous economic troubles, including the 1998 Asian Currency Crisis. Newly urbanized workers rioting for jobs or living wages,
conflict over natural resources, further saber-rattling from North Korea, all can take on lives of their own. This is the
nightmare of governments in the region, and particularly of democracies from newer ones like Thailand and Mongolia
to established states like Japan and South Korea. How will overburdened political leaders react to internal unrest? What happens
if Chinese shopkeepers in Indonesia are attacked, or a Japanese naval ship collides with a Korean fishing vessel? Quite simply, Asia's
political infrastructure may not be strong enough to resist the slide towards confrontation and conflict . This
would be a political and humanitarian disaster turning the clock back decades in Asia. It would almost certainly drag America in
at some point, as well. First of all, we have alliance responsibilities to Japan, South Korea, Australia, and the Philippines should
any of them come under armed attack. Failure on our part to live up to those responsibilities could mean the end of
America's credibility in Asia. Secondly, peace in Asia has been kept in good measure by the continued U.S .
military presence since World War II. There have been terrible localized conflicts, of course, but nothing approaching a systemic
conflagration like the 1940s. Today, such a conflict would be far more bloody, and it is unclear if the
American military, already stretched too thin by wars in Afghanistan and Iraq, could contain the crisis. Nor is it clear that the
American people, worn out from war and economic distress, would be willing to shed even more blood and treasure for lands across the ocean.
The result could be a historic changing of the geopolitical map in the world's most populous region. Perhaps China would emerge as the
undisputed hegemon. Possibly democracies like Japan and South Korea would link up to oppose any aggressor. India might decide it could move
into the vacuum. All of this is guess-work, of course, but it has happened repeatedly throughout history. There is no
reason to believe we are immune from the same types of miscalculation and greed that have destroyed
international systems in the past.
are already transforming East Asia , and future decades will see even greater increases in
increasingly dominated by the East. The historian Niall Ferguson has written that the bloody twentieth century witnessed "the descent of the
West" and "a reorientation of the world" toward the East. Realists go on to note that as China gets more powerful and the United States' position
two things are likely to happen: China will try to use its growing influence to
reshape the rules and institutions of the international system to better serve its
interests, and other states in the system -- especially the declining hegemon -- will start to see
China as a growing security threat. The result of these developments, they predict,
will be tension, distrust, and conflict , the typical features of a power transition. In
this view, the drama of China's rise will feature an increasingly powerful China and a
declining U nited S tates locked in an epic battle over the rules and
leadership of the international system . And as the world's largest country emerges not from within but outside
erodes,
the established post-World War II international order, it is a drama that will end with the grand ascendance of China and the onset of an Asian-
eliminating the major tool that rising powers have used to overturn international systems defended by declining hegemonic states. Today's
Western order, in short, is hard to overturn and easy to join. This unusually durable and expansive order is itself the product of farsighted U.S.
leadership. After World War II, the United States did not simply establish itself as the leading world power. It led in the creation of universal
institutions that not only invited global membership but also brought democracies and market societies closer together. It built an order that
facilitated the participation and integration of both established great powers and newly independent states. (It is often forgotten that this postwar
order was designed in large part to reintegrate the defeated Axis states and the beleaguered Allied states into a unified international system.)
China can gain full access to and thrive within this system. And if it does, China
will rise, but the Western order -- if managed properly -- will
live on. As it faces an ascendant China, the U nited S tates should remember that its leadership of the Western order allows it
to shape the environment in which China will make critical strategic
choices . If it wants to preserve this leadership, Washington must work to strengthen the
rules and institutions that underpin that order -- making it even easier to join
Today,
and harder
to overturn. U.S. grand strategy should be built around the motto "The road to the East runs through the West." It must sink
the roots of this order as deeply as possible , giving China greater incentives for integration than for opposition and increasing the
chances that the system will survive even after U.S. relative power has declined. The United States' "unipolar moment" will inevitably end. If the
defining struggle of the twenty-first century is between China and the United States, China will have the advantage. If the defining struggle is
between China and a revived Western system, the West will triumph. TRANSITIONAL ANXIETIES China is well on its way to
becoming a formidable global power. The size of its economy has quadrupled since the launch of market reforms in the late 1970s
and, by some estimates, will double again over the next decade. It has become one of the world's major manufacturing centers and consumes
roughly a third of the global supply of iron, steel, and coal. It has accumulated massive foreign reserves, worth more than $1 trillion at the end of
2006. China's military spending has increased at an inflation-adjusted rate of over 18 percent a year, and its diplomacy has extended its reach not
just in Asia but also in Africa, Latin America, and the Middle East. Indeed, whereas the Soviet Union rivaled the United States as a military
competitor only,
scholars such as Paul Kennedy and Robert Gilpin have described it, world politics has been marked by a succession of powerful states rising up
to organize the international system. A powerful state can create and enforce the rules and institutions of a stable global order in which to pursue
century Germany. In 1870, the United Kingdom had a three-to-one advantage in economic power over Germany and a significant military
advantage as well; by 1903, Germany had pulled ahead in terms of both economic and military power. As Germany unified and grew,
so, too, did its dissatisfactions and demands, and as it grew more powerful, it increasingly appeared as a threat to other great powers
in Europe, and security competition began. In the strategic realignments that followed, France, Russia, and the United Kingdom, formerly
from the equivalent of five percent of U.S. GDP to the equivalent of over 60 percent of U.S. GDP, and yet Japan never challenged the existing
international order. Clearly, there are different types of power transitions. Some states have seen their economic and geopolitical power grow
dramatically and have still accommodated themselves to the existing order. Others have risen up and sought to change it. Some power transitions
have led to the breakdown of the old order and the establishment of a new international hierarchy. Others have brought about only limited
adjustments in the regional and global system. A variety of factors determine the way in which power transitions unfold. The nature of the rising
state's regime and the degree of its dissatisfaction with the old order are critical: at the end of the nineteenth century, the United States, a liberal
country an ocean away from Europe, was better able to embrace the British-centered international order than Germany was. But even more
decisive is the character of the international order itself -- for it is the nature of the international order that shapes a rising state's choice between
challenging that order and integrating into it. OPEN ORDER The postwar Western order is historically unique. Any international order
dominated by a powerful state is based on a mix of coercion and consent, but the U.S.-led order is distinctive in that it has been more
liberal than imperial -- and so unusually accessible, legitimate, and durable. Its rules and institutions are rooted in, and thus reinforced by, the
evolving global forces of democracy and capitalism. It is expansive, with a wide and widening array of participants and stakeholders. It is
signaling restraint
-- all of which make it hard to overturn and easy to join. It was the explicit intention of the Western
order's architects in the 1940s to make that order integrative and expansive. Before the Cold War split the world into competing camps, Franklin
Roosevelt sought to create a one-world system managed by cooperative great powers that would rebuild war-ravaged Europe, integrate the
defeated states, and establish mechanisms for security cooperation and expansive economic growth. In fact, it was Roosevelt who urged -- over
the opposition of Winston Churchill -- that China be included as a permanent member of the UN Security Council. The then Australian
ambassador to the United States wrote in his diary after his first meeting with Roosevelt during the war, "He said that he had numerous
discussions with Winston about China and that he felt that Winston was 40 years behind the times on China and he continually referred to the
Chinese as 'Chinks' and 'Chinamen' and he felt that this was very dangerous. He wanted to keep China as a friend because in 40 or 50 years' time
China might easily become a very powerful military nation." Over the next half century, the United States used the system of rules and
institutions it had built to good effect. West Germany was bound to its democratic Western European neighbors through the European Coal and
Steel Community (and, later, the European Community) and to the United States through the Atlantic security pact; Japan was bound to the
United States through an alliance partnership and expanding economic ties. The Bretton Woods meeting in 1944 laid down the monetary and
trade rules that facilitated the opening and subsequent flourishing of the world economy -- an astonishing achievement given the ravages of war
and the competing interests of the great powers. Additional agreements between the United States, Western Europe, and Japan solidified the open
and multilateral character of the postwar world economy. After the onset of the Cold War, the Marshall Plan in Europe and the 1951 security pact
between the United States and Japan further integrated the defeated Axis powers into the Western order. In the final days of the Cold War, this
system once again proved remarkably successful. As the Soviet Union declined, the Western order offered a set of rules and institutions that
provided Soviet leaders with both reassurances and points of access -- effectively encouraging them to become a part of the system. Moreover,
the shared leadership of the order ensured accommodation of the Soviet Union. As the Reagan administration pursued a hard-line policy toward
Moscow, the Europeans pursued dtente and engagement. For every hard-line "push," there was a moderating "pull," allowing Mikhail
Gorbachev to pursue high-risk reforms. On the eve of German unification, the fact that a united Germany would be embedded in European and
Atlantic institutions -- rather than becoming an independent great power -- helped reassure Gorbachev that neither German nor Western intentions
were hostile. After the Cold War, the Western order once again managed the integration of a new wave of countries, this time from the formerly
communist world. Three particular features of the Western order have been critical to this success and longevity. First, unlike the imperial
advance their expanding economic and political goals within it. Across history, international orders have varied widely in terms
of whether the material benefits that are generated accrue disproportionately to the leading state or are widely shared. In the Western system, the
barriers to economic participation are low, and the potential benefits are high.
Extinction no defense
Goldstein 13
AVERY GOLDSTEIN is David M. Knott Professor of Global Politics and International
Relations and Director of the Center for the Study of Contemporary China at the University of
Pennsylvania, Foreign Affairs, September/October 2013, "Chinas Real and Present Danger",
http://www.foreignaffairs.com/articles/139651/avery-goldstein/chinas-real-and-present-danger
Washington has also been vague about what it sees as its vital interests in the region. The United States hedges on the question of whether Taiwan
U nited S tates stance on the maritime disputes involving China and its
Washington has remained neutral on the rival sovereignty claims and insisted that the
disputes be resolved peacefully but has also reaffirmed its commitment to stand by its allies in the event
that a conflict erupts. Such Chinese and U.S. ambiguity about the
falls under a U.S. security umbrella. And the
neighbors is somewhat confusing:
redlines that cannot be crossed without risking conflict increases the chances that either
side could take steps that it believes are safe but that turn out to be
unexpectedly provocative. MORE DANGEROUS THAN THE COLD WAR? Uncertainty about
what could lead either Beijing or Washington to risk war makes a crisis far more
likely, since neither side knows when , where, or just how hard it
can push without the other side pushing back . This situation bears some
resemblance to that of the early Cold War, when it took a number of serious crises for the two sides to feel each other out and
learn the rules of the road. But todays environment might be even more dangerous . The
balance of nuclear and conventional military power between China and the U nited S tates, for example,
is much more lopsided than the one that existed between the Soviet Union and the United States. Should Beijing and
Washington find themselves in a conflict, the huge U.S. advantage in conventional forces
actually use force . Recognizing the temptation facing Washington, Beijing might in turn feel pressure
to use its conventional forces before they are destroyed. Although China could not reverse the military imbalance,
it might believe that quickly imposing high costs on the United States would be the best way to get it to
back off. The fact that both sides have nuclear arsenals would help keep the situation in check, because both sides would want to avoid
actions that would invite nuclear retaliation. Indeed, if only nuclear considerations mattered, U.S.-Chinese crises
would be very stable and not worth worrying about too much. But the two sides
because using
conventional forces would be only the first step in an unpredictable process subject to
misperception, missteps, and miscalculation, there is no guarantee that
that it valued what was at stake more than the other and would therefore be willing to tolerate a higher level of risk. But
durability of the systems managing its advanced conventional weapons. Under such circumstances,
would feel particularly strong pressure, since its advanced conventional weapons are more fully
dependent on vulnerable computer networks, fixed radar sites, and satellites. The effectiveness of U.S. advanced forces is
less dependent on these most vulnerable systems. The advantage held by the United States, however, might increase its temptation to strike first,
especially against Chinas satellites, since it would be able to cope with Chinese retaliation in kind.
over here, threatening our prosperity, our security and perhaps even our survival . The worlds two
most mutually hostile nuclear states , India and Pakistan, are in Asia. The two
states most likely to threaten others with nukes , North Korea and aspiring
rogue nuclear power Iran , are there. The two superpowers with a billion plus people are in
Asia as well. This is where the worlds fastest growing economies are. It is where the worst
environmental problems exist. It is the home of the worlds largest democracy, the worlds most populous Islamic country (Indonesia
which is also among the most democratic and pluralistic of Islamic countries), and the worlds most rapidly rising non-democratic power as
well. Asia
holds more oil resources than any other continent; the worlds most important and
most threatened trade routes lie off its shores. East Asia, South Asia, Central Asia (where
American and NATO forces are fighting the Taliban) and
West Asia (home among others to Saudi Arabia, Israel, Turkey and Iraq) are the
theaters in the world today that most directly engage Americas vital interests and where our armed forces
are most directly involved. The worlds most explosive territorial disputes are in
Asia as well, with islands (and the surrounding mineral and fishery resources) bitterly disputed between countries like
Russia, the two Koreas, Japan, China (both from Beijing and Taipei), and Vietnam. From the streets of Jerusalem to the
beaches of Taiwan the worlds most intractable political problems are found on the Asian landmass and its surrounding seas. Whether you view
the world in
center of your concerns . That is the overwhelming reality of world politics today,
in foreign currency reserves, Asian nations and businesses are starting to shape global economic
activity
. Indian firms are purchasing industrial giants such as Arcelor Steel, as well as iconic brands of its once-colonial ruler, such as
Jaguar and Range Rover. Chinas Lenovo bought IBMs personal computer We call the transformations across the Asia-Pacific the emergence of
iAsia to reflect the adoption by countries across Asia of fundamentally new strategic approaches to their neighbors and the world. Asian nations
are pursuing their interests with real power in a period of both tremendous potential and great uncertainty. iAsia is: Integrating: iAsia includes
increasing economic interdependence and a flowering of multinational forums to deal with trade, cultural exchange, and, to some degree, security.
Innovating: iAsia boasts the worlds most successful manufacturing and technology sectors and could start taking the lead in everything from
finance to nanotech to green tech. Investing: Asian nations are developing infrastructure and human capital at unprecedented rates. But the
continent remains plagued by: Insecurity : Great-power rivalry is alive in Asia. Massive
is not a theater at peace . On average, between 15 and 50 people die every day from causes tied to
conflict, and suspicions rooted in rivalry and nationalism run deep. The
Earth for a major conventional confrontation and even a nuclear conflict . Coexisting with
the optimism of iAsia are the ingredients for internal strife, non-traditional threats like terrorism, and
traditional interstate conflict, which are all magnified by the risk of
lasting armed conflicts are found in Asia. From Afghanistan to Sri Lanka and from Kashmir to the
unending armed insurgencies in Indonesia and the Philippines, wars are routine. Asia is also marked by the most
explosive borders in the world: China and India, Pakistan and India, and between the
two Koreas. From Asia came the avian bird flu pandemic. While the mortalities proved lower than feared, the
world was alerted to Asias potential to rapidly spread disease across the globe. Are these
accidents and Asia-originated problems inevitable? Of course not. But they are unfortunately
more important and urgent than issues that more frequently absorb the worlds
attention.
U nited S tates stance on the maritime disputes involving China and its
Washington has remained neutral on the rival sovereignty claims and insisted that the
has also reaffirmed its commitment to stand by its allies in the event
that a conflict erupts. Such Chinese and U.S. ambiguity about the
redlines that cannot be crossed without risking conflict increases the chances that either
side could take steps that it believes are safe but that turn out to be
unexpectedly provocative. MORE DANGEROUS THAN THE COLD WAR? Uncertainty about
what could lead either Beijing or Washington to risk war makes a crisis far more
likely, since neither side knows when , where, or just how hard it
can push without the other side pushing back . This situation bears some
resemblance to that of the early Cold War, when it took a number of serious crises for the two sides to feel each other out and
learn the rules of the road. But todays environment might be even more dangerous . The
balance of nuclear and conventional military power between China and the U nited S tates, for example,
is much more lopsided than the one that existed between the Soviet Union and the United States. Should Beijing and
Washington find themselves in a conflict, the huge U.S. advantage in conventional forces
because using
conventional forces would be only the first step in an unpredictable process subject to
misperception, missteps, and miscalculation, there is no guarantee that
that it valued what was at stake more than the other and would therefore be willing to tolerate a higher level of risk. But
durability of the systems managing its advanced conventional weapons. Under such circumstances,
would feel particularly strong pressure, since its advanced conventional weapons are more fully
dependent on vulnerable computer networks, fixed radar sites, and satellites. The effectiveness of U.S. advanced forces is
less dependent on these most vulnerable systems. The advantage held by the United States, however, might increase its temptation to strike first,
especially against Chinas satellites, since it would be able to cope with Chinese retaliation in kind.
real issue is the potential for escalation or an accident that could precipitate escalation that would
both sides on high alert, both adhering to their own national (and contradictory)
definitions of where disputed boundaries lie and with rules of engagement loosened, the potential for sudden
be beyond the control of Pyongyang or Seoul. With
and rapid escalation is quite real . Indeed, North Koreas navy, though sizable on paper, is
largely a hollow shell of old, laid-up vessels. What remains are
so both Pyongyang and Seoul were being heavily managed from their
respective corners. In fact, USFK was long designed to ensure that South Korea could not independently provoke that war and drag the
Americans into it, which for much of the Cold War period was of far greater concern to Washington than North Korea attacking southward.
Today, those constraints no longer exist. There are certainly still constraints neither the United States nor China wants war on the
peninsula. But current tensions
are quickly escalating to a level unprecedented in the post-Cold War period, and the
constraints that do exist have never been tested in the way they might be if the situation escalates much
further.
weapons did help to reduce the impulses for a conventional war between great powers, they did not prevent
geopolitical competition. Great power rivalry expressed itself in two other forms of conflict during the Cold War: inter-state wars and
intra-state conflict. If the outcomes in these conflicts are seen as threatening to one or other great
power, they are likely to influence the outcome. This can be done either through support for one of the parties in the interstate conflicts or civil wars. When a great power decides to become directly involved in a conflict the
stakes are often very high . In the coming years, it is possible to envisage conflicts of all these types in the
ACI region. Asia has barely begun the work of creating an institutional framework to resolve regional
security challenges. Asia has traditionally been averse to involving the United Nations (UN) in regional security arrangements. Major
powers like the PRC and India are not interested in internationalizing their security problemswhether Tibet; Taipei,China; the South China
Sea; or Kashmirand give other powers a handle. Even lesser powers have had a tradition of rejecting UN interference in their conflicts. North
Korea, for example, prefers dealing with the United States directly rather than resolve its nuclear issues through the International Atomic Energy
Agency and the UN. Since its founding, the involvement of the UN in regional security problems has been rare and occasional. The burden of
securing Asia, then, falls squarely on the region itself. There are three broad ways in which a security system in Asia might evolve: collective
security, a concert of major powers, and a balance of power system.30 Collective security involves a system where all stand for one and each
stands for all, in the event of an aggression. While collective security systems are the best in a normative sense, achieving them in the real world
has always been difficult. A more achievable goal is cooperative security that seeks to develop mechanisms for reducing mutual suspicion,
building confidence, promoting transparency, and mitigating if not resolving the sources of conflict. The ARF and EAS were largely conceived
within this framework, but the former has disappointed while the latter has yet to demonstrate its full potential. A second, quite different,
approach emphasizes the importance of power, especially military power, to deter ones adversaries and the building of countervailing coalitions
against a threatening state. A balance
of power system, as many critics of the idea point out, promotes arms races , is
inherently unstable , and breaks down frequently leading to systemic wars . There is growing concern in Asia
that amidst the rise of Chinese military power and the perception of American decline, many large and small states are stepping up
their expenditure on acquiring advanced weapons systems. Some analysts see this as a structural condition of the new Asia that
must be addressed through deliberate diplomatic action. 31 A third approach involves cooperation among the great powers to act in concert to
enforce a broad set of normsfalling in between the idealistic notions of collective security and the atavistic forms of balance of power.
However, acting in concert involves a minimum level of understanding between the major powers. The greatest example of a concert is the one
formed by major European powers in the early 18th century through the Congress of Vienna after the defeat of Napoleonic France. The problem
of adapting such a system to Asia is the fact that there are many medium-sized powers who would resent any attempt by a few great powers to
impose order in the region.32 In the end, the system that emerges in Asia is likely to have elements of all the three models. In the interim, though,
there are substantive disputes on the geographic scope and the normative basis for a future security order in Asia.
Neither the U.S. nor China has any interest in any kind of war with one other, nuclear or non-nuclear. The greater
risk is an accident. Here's how it would happen. First, an unforeseen event that sparks a small conflict or threat of
conflict. Second, a rapid escalation that moves too fast for either side to defuse. And, third, a mutual
misunderstanding of one another's intentions. This three-part process can move so quickly that the best way to avert a nuclear war is for both
sides to have absolute confidence that they understand when the other will and will not use a nuclear weapon. Without this, U.S.
and
Chinese policy-makers would have to guess -- perhaps with only a few minutes -- if and when the
other side would go nuclear. This is especially scary because both sides have good reason to err on the side of assuming nuclear
war. If you think there's a 50-50 chance that someone is about to lob a nuclear bomb at you, your incentive is to launch a preventative strike, just
to be safe. This is especially true because you know the other side is thinking the exact same thing. In fact, even if you think the other side
probably won't launch an ICBM your way, they actually might if they fear that you're misreading their intentions or if they fear that you might
over-react; this means they have a greater incentive to launch a preemptive strike, which means that you have a greater incentive to launch a
preemptive strike, in turn raising their incentives, and on and on until one tiny kernel of doubt can lead to a full-fledged war that nobody wants.
The U.S. and the Soviet Union faced similar problems, with one important difference: speed. During the first decades of the Cold War, nuclear
bombs had to be delivered by sluggish bombers that could take hours to reach their targets and be recalled at any time. Escalation was much
slower and the risks of it spiraling out of control were much lower. By the time that both countries developed the ICBMs that made global
annihilation something that could happen within a matter of minutes, they'd also had a generation to sort out an extremely clear understanding of
one another's nuclear policies. But the
U.S. and China have no such luxury -- we inherited a world where total
mutual destruction can happen as quickly as the time it takes to turn a key and push a button. The
U.S. has the world's second-largest nuclear arsenal with around 5,000 warheads (first-ranked Russia has more warheads but less capability for
flinging them around the globe); China has only about 200, so the danger of accidental war would seem to disproportionately threaten China. But
the greatest risk is probably to the states on China's periphery. The borders of East Asia are still not entirely settled; there are a number of small,
conflicts that could come up between the U.S. and China, and though none of them should escalate any higher than a few tough words between
diplomats, it's the unpredictable events that are the most dangerous. In 1983 alone, the U.S. and Soviet Union almost went
to war twice over bizarre and unforeseeable events. In September, the Soviet Union shot down a Korean airliner it mistook for a spy plane; first
Soviet officials feared the U.S. had manufactured the incident as an excuse to start a war, then they refused to admit their error, nearly pushing the
U.S. to actually start war. Two months later, Soviet spies misread an elaborate U.S. wargame (which the U.S. had unwisely kept secret) as
preparations for an unannounced nuclear hit on Moscow, nearly leading them to launch a preemptive strike. In both cases, one of the things that
ultimately diverted disaster was the fact that both sides clearly understood the others' red lines -- as long as they didn't cross them, they could
remain confident there would be no nuclear war. But the
U.S. and China have not yet clarified their red lines for
nuclear strikes. The kinds of bizarre, freak accidents that the U.S. and Soviet Union barely survived in 1983 might well bring today's two
Pacific powers into conflict -- unless, of course, they can clarify their rules. Of the many ways that the U.S. and China could stumble into the
nightmare scenario that neither wants, here are five of the most likely. Any one of these appears to be extremely unlikely in today's world. But
that -- like the Soviet mishaps of the 1980s -- is exactly what makes them so dangerous.
Most probable
Campbell et al 8(Kurt M, Assistant Secretary of State for East Asian and Pacific Affairs, Dr. Campbell served in
several capacities in government, including as Deputy Assistant Secretary of Defense for Asia and the Pacific,
Director on theNational Security Council Staff, previously the Chief Executive Officer and co-founder of the Center
for a New American Security (CNAS), served as Director of the Aspen Strategy Group and the Chairman of the
Editorial Board of the Washington Quarterly, and was the founder and Principal of StratAsia, a strategic advisory
company focused on Asia, rior to co-founding CNAS, he served as Senior Vice President, Director of the
International Security Program, and the Henry A. Kissinger Chair in National Security Policy at the Center for
Strategic and International Studies, doctorate in International Relation Theory from Oxford, former associate
professor of public policy and international relations at the John F. Kennedy School of Government and Assistant
Director of the Center for Science and International Affairs at Harvard University, member of Council on Foreign
Relations and International Institute for Strategic Studies, The Power of Balance: America in iAsia June 2008,
http://www.cnas.org/files/documents/publications/CampbellPatelSingh_iAsia_June08.pdf)
We call the transformations across the Asia-Pacific the emergence of iAsia to reflect the adoption by countries across Asia of fundamentally
new strategic approaches to their neighbors and the world. Asian
boasts the worlds most successful manufacturing and technology sectors and could start taking the lead in everything from finance to nanotech to
green tech. Investing: Asian nations are developing infrastructure and human capital at unprecedented rates. But the
continent remains
plagued by: Insecurity: Great-power rivalry is alive in Asia. Massive military investments along
with historic suspicions and contemporary territorial and other conflicts make war in Asia
plausible. Instability: From environmental degradation to violent extremism to trafficking in drugs,
people, and weapons, Asian nations have much to worry about.Inequality: Within nations and between them,
inequality in Asia is more stark than anywhere else in the world. Impoverished minorities in
countries like India and China, and the gap in governance and capacity within countries, whether as
backward as Burma or as advanced as Singapore, present unique challenges. A traditional approach to Asia will not suffice if the
United States is to both protect American interests and help iAsia realize its potential and avoid pitfalls. business and the Chinese government,
along with other Asian financial players, injected billions in capital to help steady U.S. investment banks such as Merrill Lynch as the American
subprime mortgage collapse unfolded. Chinese investment funds regional industrialization, which in turn creates new markets for global products.
Asia now accounts for over 40 percent of global consumption of steel 4 and China is consuming almost half of worlds available concrete. 5
Natural resources from soy to copper to oil are being used by China and India at astonishing rates, driving up commodity prices and setting off
alarm bells in Washington and other Western capitals. Yet Asia
The converse of reassurance would be an action - or in this case, inaction that would sow great doubt on American credibility . The failure to complete
combined operations designed to "seize the initiative".
this trade pact would strike a serious blow to our reputation, and one from
the
TPP is that it would allow the US to entrench itself in the world's most dynamic world
economic ones of expanding trade in relatively new sectors as well as services, the TPP is
his Asia
policy had until now been seen as a bright spot given the fracturing of nations in the Middle East, the rise of extremist groups such as ISIS
and the return of Cold War-style hostilities with Russia. His promise to channel power and resources toward Asia was
widely welcomed in the region as an antidote to China's rising might among allies
deeply concerned about Beijing's territorial ambitions on the East and South China seas. Japan, for instance, was
deeply appreciative of Obama's forceful statement in April 2014 that U.S. treaty commitments to its ally were "absolute" amidst rising territorial tensions between
Tokyo and Beijing. While denying that he was trying to contain China, Obama
Philippines. The administration helped lure Myanmar, once in China's orbit, out of isolation, despite a rocky transition that has not yet led to democracy. He
repaired ragged U.S. relations with Malaysia and played upon his ties with regional giant Indonesia after
spending four years living there as a boy. But supporters of the TPP argue that if the U.S. falls short of its trade goals in
Asia, its capacity to project power will be overly reliant on military means , a factor
that could further increase tensions with Beijing. "If you are out of the region ...
not playing a useful role, your only lever to shape the architecture, to shape the region, to influence
events is the Seventh Fleet . That is not the lever you want to use ," said
Shanmugam. As it is, growing
miscalculation between China's forces and U.S. ships and aircraft deployed in the region. Fears of a military
confrontation Beijing's recently announced that it wants to build a navy that can project power
far from its own shores, at the same time that China is trading accusations with Washington over its
expansion of man-made islands among South China Sea navigational routes crucial to the global economy. There are
fears of an unintentional clash between U.S. and Chinese ships and planes
in the region.
Pivot attempt inevitable, but TPP is sin quo non of Success alternative ensures
perception of military focused pivot straight turns their offense
Goodman, 13
(Matthew, Simon Chair in Political Economy at CSIS, December, economics and the
rebalance, http://csis.org/files/publication/131220_Global_Economics_Monthly_v2issue12.pdf)
Economics is at the heart of U.S. involvement in the Asia Pacific . This statement is as true today as it was in 1784, when
the first U.S. merchant ship bound for Canton set sail from New York. Trade, investment, and other economic ties across the Pacific today are
measured in the trillions of dollars, support millions of American jobs, and underpin our national security . Like administrations before it, the
Obama administration has
put economics at the center of its Asia-Pacific strategy. But it has arguably raised the
stakes by making the overall success of its policy of rebalancing to Asia contingent on a successful
economic strategy, in particular completion of a high-standard Trans-Pacific Partnership (TPP) trade agreement. The
economic leg of the rebalance is driven by three broad objectives: promoting growth and jobs, upholding
and updating the rules of the international trading system, and supporting Americas long-term presence
in the region. It is worth noting that these objectives get to both sides of the coin regarding the relationship
between economics and foreign policy: using diplomatic tools to support better economic outcomes , such as
more growth and jobs; andarguably more challengingusing economic tools in a strategic way to support foreign
policy objectives, such as strengthening the rules and supporting our presence in the region. In pursuit of these objectives, the Obama
administration has used a multilayered approach to economic engagement in the Asia Pacific. This has bilateral, regional, and global strands,
from the Strategic & Economic Dialogue with China, to TPP and the Asia-Pacific Economic Cooperation (APEC) forum, to the G-20, half of
whose members are Asia-Pacific countries. And it encompasses all aspects of economic policy, including promotion of strong domesticdemandled growth in large Asian surplus economies; negotiation of bilateral investment treaties; and strategic use of development assistance. But trade
and TPP in particularis the
strategy in Asia. Through TPP, the administration seeks to advance all three objectives mentioned
above, with an accent on updating the rules. TPP aims to establish disciplines on an array of behind-the-border impediments,
such as excessive or nontransparent regulation; preferences for domestic, especially state-owned, enterprises; and inadequate intellectual property
protection. The administrations aim appears to be making a successful TPP the driver and de facto template for a new multilateral system of
rules. Failure to reach a TPP deal at this months ministerial meeting in Singapore was disappointing but not fatal. Trade talks are always darkest
and noisiestbefore the dawn, as differences are narrowed to the most politically contentious issues. There are still grounds for optimism that
a basic TPP deal can be reached by the time of President Obamas planned trip to Asia next April. The stakes could not be higher for
the White House. Conclusion of TPP is the sine qua non of success for
senior officials emphasized last week by Vice President Joe Bidens trip to Japan, South Korea, and China. The logic of the
pivot is obvious measured in terms of volume of trade and significant security challenges, the need for this policy shift is clear. In
practice,
failed to explain the policy to the public andCongress, and to drive the policy into
Americans foreign policy culture in Washington, D.C. Chinas recent establishment of an air control zone that extends close to
however, the Obama administration has
Japan (while heightening territorial disagreements) and the American air forces flight of nuclear-capable B52 bombers through that area in
response, is a serious warning signal that the Asia pivot needs urgent attention and will require far more engagement than a short trip by the Vice
President. For the Asia pivot to succeed, a major shift in American foreign policy concepts has to occur. For
the last twenty years, the United States had focused on a global strategy of primacy embraced by liberal interventionists on the political left and
neoconservatives on the right. This loose coalition was built on a sense that America had to be all things in all places or risk credibility of its
commitments. The result was American overstretch that committed the United States to costly conflicts defending peripheral national interests
while incentivizing free-riding among allies. The Asia pivot is a major challenge to this worldview because at its core, it is a new
prioritization guided by realism that sees the world as it is, not as we wish it might be. The global shift of
economic and latent military power is clearly moving towards Asia while Europe is capable of handling its own security challenges and
Americas interests in the Middle East are narrowing. Yet
because the Obama administration has failed to articulate, and implement, the many moving parts that are
necessary for success, which has created uncertainty and could cause the concept to fail before it
president mainly declared that as other regions of the world are cut, Asia would be
protected in the defense budget . Even if the pivot were to get the military dimension right, , Asia
has suffered from a vacuum of diplomatic and economic engagement by senior U.S. officials. Secretary of State John Kerry has been knee-deep
in Europe and the Middle East The President unwisely cancelled essential trips to the region in the last two years. The Administration
has neglected a sustained effort to build norms of cooperation and predictability in the region and has yet to produce a
major new trade agreement, leaving the pivot incomplete and potentially dangerous if
misread by China as entirely military in nature. Vice-President Bidens trip was a timely success but mainly at managing an
immediate crisis exacerbated by a vacuum that has been allowed to persist in Asia while the United States found itself strategically distracted
elsewhere over the last year.
for President Obamas pivot to Asia, a big and bold policy maneuver that has fallen down the priority list
in his second term. The United States of America will be therereliable, constant, strong and steadyfor the long term, said Rice. Since
the promise of the pivot. During the same period, China escalated an economic and diplomatic
charm offensive across the region, from Turkmenistan to Vietnam. Partly because the Middle East remains so unstable, Obama and
his team havent devoted the attention and resources necessary to follow through on the pivot. Rices speech, hastily put
together, as the Washington Post reports, was short on specifics and focused mostly on China, with
criticisms of state-sponsored hacking and economic espionage . But she emphasized the warming relationship and
Washington hasnt yet
given up on what should be a major foreign policy initiative. A
stronger focus on a rising Asia will remain key to US foreign policy, something likely to
stay true no matter who wins in 2016. Serious people in both parties understand the importance
highlighted areas of mutual interest between Washington and Beijing. Its good to see that
with. The Obama administrations initial policy in 2009 raised fears in many Asian capitals of a G2 condominium that would make decisions over the heads of others. Those concerns were
U.S. approach as weakness, which, along with Chinas economic success and Americas struggles, led to a year of
Chinese hubris that manifested itself in a series of intimidating actions in Chinas neighborhood. Subsequent entreaties by regional states to
counterbalance China increased U.S. attention to the Asia-Pacific region. Now, the U.S. Asia pivot has prompted Chinese anxiety about U.S. containment and
unwarranted and short lived. Beijing interpreted the
heightened regional worries about intensified U.S.-China strategic competition. In the run-up to the leadership transition that will take place at Chinas 18th Party Congress this fall, Beijing is
inwardly focused and unlikely to act on its fears. However, 2013 could see a shift in Chinese foreign policy based on the new leaderships judgment that it must respond to a U.S. strategy that
Signs of a potential harsh reaction are already detectable. The U.S. Asia pivot has triggered
anti-American sentiment in China that will increase pressure on Chinas incoming leadership to stand up to the United States. Nationalistic
voices are calling for military countermeasures to the bolstering of Americas military posture in the region and the new U.S. defense strategic guidelines. For
seeks to prevent Chinas reemergence as a great power.
an outpouring of
example, an article published in Chinas Global Times, a jingoistic newspaper owned by the Communist Party mouthpiece Peoples Daily, called for China to strengthen its long-range strike
capabilities. Deng Xiaopings guideline to keep a low profile in the international arena, designed more than two decades ago to cope with uncertainty produced by the collapse of the Soviet
bloc, is increasingly seen by Chinas elite and public as irrelevant and even harmful to the task of defending Chinese ever-expanding core interests. Some voices are calling for closer
alignment with Moscow and promoting the BRICS grouping (Brazil, Russia, India, and China) as a new pole in the international arena to strengthen the emerging powers against the West. Xi
Jinping, who will assume the helm as Chinas new leader later this year, will be under pressure from many domestic constituencies to more forcefully defend Chinese interests in the
international arena. Seeking to quickly consolidate his power and enhance the legitimacy of the Communist Party, Xi and his newly installed Politburo Standing Committee colleagues may be
more willing than their predecessors to test drive a policy that is more confrontational. The U.S. response to a more muscular Chinese foreign and military policy, should it appear, will have to
be carefully calibrated. Ignoring greater Chinese assertiveness would fuel the beliefalready emerging in China and elsewhere that the United States is in inexorable decline. History shows
The United States also will need to maintain the military capabilities necessary to deter Chinese
aggression.
Only strength in the pivot can deter enemies and assure allies to prevent conflict
Trang 13 (Le Thuy is a research fellow at the Diplomatic Academy of Vietnam, The
(continued) need for American Pivot to Asia,
http://southchinaseastudies.org/en/publications/vietnamese-publications/863-the-continued-needfor-american-qpivot-to-asiaq)
One of the oft-cited indications that the US pivot might be going astray in contributing to Asian stability, to many critics, is the emboldened stance many regional
Washingtons decision to establish bilateral alliances with South Korea and Japan instead of incorporating the latter two into a larger multilateral network where
American voice would presumably hold less sway was a deliberate choice to counter Soviet influence and at the same time avoid unintended clashes with Soviet
Given growing unease with Chinas rise in various Asian capitals today, American
presence is all the more critical to provide both the assurance and deterrence all regional
countries need. Many would point to the string of confrontations in East Asia that happened to concur with US return to the region and seem not
into its past militarist adventurism.
military base in the Philippines hastened further American disengagement from the region, and the Filipinos paid quite a dear price for their decision as China,
Clinton administrations
demonstration of US resolve and commitment to Taiwans security in 1996 forced Beijing to review its
strategy and adopt a more nuanced charm offensive towards its neighbors. Yet a decade of relative calmness in
the South China Sea began to fade away as the Bush administration appeared to be indulged in the war on terrorism.[11] In formulating and
executing the pivot, the Obama administration was responding to regional events rather than
precipitating those events ; in fact, Washington was answering US allies and friends concerns about
Chinas power trajectory and perceivable US distractedness in ways that help assuage those
concerns rather than precipitate them and allow unnecessary conflicts to transpire.
emboldened by US troops departure from Philippine shores, leveled up its assertiveness at the Mischief Reef.[10]Apparently the
closely with the US.[25] Paradoxically, while critics of cheap riding have argued that the projected two-percent increase in Japanese military expenditure is minimal
and inadequate,[26] others are worrying about a possible resurgence of Japanese militarism,[27] which suggests that the Japanese investment in their military buildup
might be at the right level.
antagonize China. This misperception ignores the fact that deepening engagement with Beijing has been a central and irrefutable feature
of the rebalancing policy. Examples of the new approach include the establishment of the annual U.S.China Strategic and Economic Dialogue, a comprehensive set of meetings chaired by the U.S. secretaries of
state and the treasury and their Chinese counterparts, and the Strategic Security Dialogue, through which the two countries have held
unprecedented high-level discussions on such sensitive matters as maritime security and cyber-security. Tensions
foreign policy is not a zero-sum game , and the criticism that paying more attention to Asia is
somehow an admission of strategic defeat in the Middle East misses a crucial reality: during the past
decade, the very Asian countries to which Washington wants to pay more attention have quietly
built a substantial stake in the furtherance of peace and stability across the Middle East and South Asia
and very much want the United States to preserve its influence in those regions.
concluded , Senator Reids comments were described as putting the brakes on the Presidents trade agenda until after the midterm elections in
November. Senator Reids comments should not have been surprising or even troubling. When asked if he would bring TPA to the Senate floor, Reid replied with
Well see, leaving the possibility on the table. That trade critics are pleased with Senator Reids comments and that business groups are not isnt news. President
Obama expressed support for trade agreements during the State of the Union address, but not much more than a name-check and not enough to provide political cover
to Democrats who might consider supporting TPA. With Senate Minority Leader Mitch McConnell and other Republicans openly advocating TPA, the issue was
probably due to get some push-back from Democrats. Tactically, this makes sense because no Democrat in a contested seat (and Senator Reid has many to protect) for
the November elections stands to gain from TPA or the deals that it would accelerate, chiefly the Trans-Pacific Partnership (TPP). Who gains the most now from TPA
and the resulting TPP agreement? The White House. This isnt because of the immediate economic benefits to the United States, or because it provides a template for
The
White House needs TPA because the TPP is the pivot to Asia. The
future large-scale, comprehensive trade agreements, or because the President has advanced the most ambitious trade agenda since the early 1990s.
military realignment is important, but the repositioning is mostly relative, driven by drawdowns in Iraq and Afghanistan. The
the Asia Pivot is primed to be the area where he beneficially changes the course of U.S. foreign policy (the discussions with Iran are still too nascent to determine how
far reaching they will become). Today, there
are tensions among Asias large powers, and the U nited S tates is likely
the single entity that can influence the situation. The U nited S tates and Asia need each other
and TPP is the vehicle that can functionally, economically, and politically
help bind them together . The Members of Congress and staff that have drafted the TPA bill have put admirable effort into
legislation. Trade negotiators working on TPP have been equally tireless. But TPP, and Asia, cannot wait forever. Many
reassure U.S.
partners in Asia and answer domestic critics who argue that the Pivot lacks substance. Moreover, it would give the President an achievable
goal in advance of his April trip to Asia.
"pivot" towards the Asia-Pacific to reinforce its role in the region. It is a policy that requires the
repositioning of some 60 per cent of American naval and aerospace power in the Asia-Pacific by
2020. Yet, this rebalance of U.S. strategy is occurring at a time when there is much speculation on "American decline". Such speculation is
driven by a combination of: unprecedented fiscal austerity; a staggering gross national debt of US$16 trillion; legislative political paralysis; and
the impact of two long ground wars in the greater Middle East that have exhausted the all-volunteer military and created a weariness among many
Americans over the efficacy of overseas commitments. As the former Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen (2010) stated,
it is national debt with its ominous domestic and foreign policy implications that constitutes America's "biggest security threat".1
---TRADE IMPACT---
the wake of World War II, when the United States provided more access to Western European
countries and Japan than it received from them, in an attempt to speed their reconstruction and
solidify their integration into an open, rules-based international order. Trade also serves as an
effective way to send signals to allies and rivals. Signaling was the primary motivation behind the United
Kingdoms push for the trade agreement it signed with the United States in 1938 , just before the
outbreak of World War II. The British gained little economically, but the deal bolstered the
appearance of Anglo-American solidarity. Similarly, signaling was as important as economics to the
United States first-ever free-trade agreement, which was concluded with Israel in 1985 . If anyone
doubts the strategic importance of trade, consider Russias reaction during the past year to the
prospect of Ukraine deepening its trade ties with the West. The global trading system also provides
avenues for peaceful competition and mechanisms for resolving grievances that might otherwise escalate .
Over time, the habits of cooperation shaped through trade can reduce misperceptions, build trust, and
increase cooperation between states on other issues -- creating an atmosphere congenial to the
preservation of peace, as U.S. President Harry Truman put it in 1947, while making the case for
Without it, protectionism escalates makes all conflict and extinction inevitable.
Panzer, 2008
[25-year veteran of the markets who has worked for for HSBC, Soros Funds, ABN Amro,
Dresdner Bank, and J.P. Morgan Chase. New York Institute of Finance faculty member and a
graduate of Columbia University. (Michael, Financial Armageddon, 136-8]
Continuing calls for curbs on the flow of finance and trade will inspire the United States and other
nations to spew forth protectionist legislation like the notorious Smoot-Hawley bill. Introduced
at the start of the Great Depression, it triggered a series of tit-for-tat economic
responses , which many commentators believe helped turn a serious economic downturn into
a prolonged and devastating global disaster. But if history is any guide, those lessons will have been
long forgotten during the next collapse. Eventually, fed by a mood of desperation and growing
public anger, restrictions on trade, finance, investment, and immigration will almost certainly
intensify. Authorities and ordinary citizens will likely scrutinize the cross-border movement of
Americans and outsiders alike, and lawmakers may even call for a general crackdown on
nonessential travel. Meanwhile, many nations will make transporting or sending funds to other
countries exceedingly difficult. As desperate officials try to limit the fallout from decades of illconceived, corrupt, and reckless policies, they will introduce controls on foreign exchange.
Foreign individuals and companies seeking to acquire certain American infrastructure assets, or
tryiTradeng to buy property and other assets on the cheap thanks to a rapidly depreciating dollar,
will be stymied by limits on investment by noncitizens. Those efforts will cause spasms to ripple
across economies and markets, disrupting global payment, settlement, and clearing mechanisms.
All of this will, of course, continue to undermine business confidence and consumer spending. In
a world of lockouts and lockdowns, any link that transmits systemic financial pressures across
markets through arbitrage or portfolio-based risk management, or that allows diseases to be
easily spread from one country to the next by tourists and wildlife, or that otherwise facilitates
unwelcome exchanges of any kind will be viewed with suspicion and dealt with accordingly. The
rise in isolationism and protectionism will bring about ever more heated arguments and dangerous
confrontations over shared sources of oil, gas, and other key commodities as well as factors of
production that must, out of necessity, be acquired from less-than-friendly nations. Whether
involving raw materials used in strategic industries or basic necessities such as food, water, and
energy, efforts to secure adequate supplies will take increasing precedence in a world where
demand seems constantly out of kilter with supply. Disputes over the misuse, overuse, and
pollution of the environment and natural resources will become more commonplace. Around the
world, such tensions will give rise to full scale military encounters ,
often with minimal provocation . In some instances, economic conditions will serve
as a convenient pretext for conflicts that stem from cultural and religious differences.
Alternatively, nations may look to divert attention away from domestic problems by channeling
frustration and populist sentiment toward other countries and cultures. Enabled by cheap
technology and the waning threat of American retribution, terrorist groups will likely boost the
frequency and scale of their horrifying attacks, bringing the threat of random violence to a whole
new level. Turbulent conditions will encourage aggressive saber rattling and
interdictions by rogue nations running amok. Age-old clashes will also take on a new, more heated
sense of urgency. China will likely assume an increasingly belligerent posture
toward Taiwan, while Iran may embark on overt colonization of its
neighbors in the Mideast . Israel, for its part, may look to draw a dwindling list of
allies from around the world into a growing number of conflicts . Some
observers, like John Mearsheimer, a political scientist at the University of Chicago, have even
speculated that an intense confrontation between the United States and China is inevitable at
some point. More than a few disputes will turn out to be almost wholly ideological. Growing
cultural and religious differences will be transformed from wars of words to battles soaked in blood.
Long-simmering resentments could also degenerate quickly, spurring
the basest of human instincts and triggering genocidal acts . Terrorists employing biological or
nuclear weapons will vie with conventional forces using jets, cruise missiles, and bunkerbusting bombs to cause widespread destruction. Many will interpret stepped-up confl icts between
Muslims and Western societies as the beginnings of a new world war.
are emerging. The first is disintegration of the trading system . The core of the
WTO is utterly dysfunctional: deals require unanimity among 160 members, making
any cantankerous player like India a veto. Aligning interests has been impossible, turning all action in global
trade policymaking to free trade agreements (FTAs), first kicked off by the North American Free Trade Agreement (NAFTA) in
1994. By now, 400 FTAs are in place or under negotiation. FTAs have been good cholesterol for trade, but the
overlapping deals and rules also complicate life for U.S. companies doing global business. One single deal among
Two threats
all countries would be much preferable to the spaghetti bowl of FTAs, but it is but a pie in the sky. So is deeper liberalization by protectionist
countries like India. The U.S.-led talks for mega-regional agreements with Europe and Asia-Pacific nations, the TransAtlantic Trade and Investment Partnership (TTIP) and Trans-Pacific Partnership ( TPP),
to these problems . They free trade and create uniform rules among countries making up
two-thirds of the world economy . Incidentally, they would create a million jobs in America. Yet both
hang in balance thanks to inaction on Capitol Hill to pass the Trade Promotion Authority (TPA), the key piece of legislation for approving
the mega-deals, now stuck in a bitter political fight as several Democrats and Tea Party line up in opposition. TPA is key for the Obama
administration to conclude TPP and TTIP talks: Europeans and Asians are unwilling to negotiate the thorniest topics before they know TPA is in
place to constrain U.S. Congress to voting up or down on these deals, rather than amending freshly negotiated texts. The second threat in
world trade is the absence of common rules of the game for the 21st century global digital economy. As
3D printing, Internet of Things, and cross-border ecommerce, and other disruptive technologies expand
trade in digital goods and services, intellectual property will be fair game why couldnt a company around the world
simply replicate 3D printable products and designs Made in the USA? Another problem is data protectionism rules on access and
transport of data across borders. Europeans are imposing limits on companies access to consumer data,
complicating U.S. businesses customer service and marketing ; emerging markets such as Brazil and Vietnam are forcing
foreign IT companies to locate servers and build data centers as a condition for market access, measure that costs companies millions in
inefficiencies. A growing number of countries claim limits on access to data on the grounds of national
security and public safety, familiar code words for protectionism. Digital protectionism risks
disintegrating world markets . Just as after World War II, the global trading
system rests in Americas hands . Three things are needed. The first is the approval of TPA, which
unshackles U.S. negotiators to finalize TPP and TTIP. Most interesting for U.S. exporters, TPP and
interested. Once this happens, the TTIP-TPP superdeal will cover 80 percent of worlds output and
approximate a multilateral agreement and have cutting-edge common trade
rules that could never be agreed in one Big Bang at the WTO.
moment when we most need to shore up the troubled global economic order, America -- the architect of
this very order -- is failing to lead. Even as the United States remains pivotal to global growth, U.S. corporations -- the engines of the American economy
-- are stifled by taxes, regulations, and policy uncertainty. Gaping fiscal deficits in the United States are undermining the dollar, exacerbating trade deficits, and
undercutting U.S. economic dynamism and credibility in world affairs, but political posturing has obstructed the country's path to solvency. Earlier this week, the IMF
warned that if political deadlock takes America to the so-called fiscal cliff of automatic tax hikes and spending cuts in January 2013, it could have a devastating impact
on the U.S. and world economies. No wonder America's image as the global economic superpower is receding around the world. Europe's travails, meanwhile, are
reducing U.S. companies' exports and overseas profits, threatening America's recovery. And yet Congress has balked at boosting the IMF's resources to fight the
eurozone crisis while the Obama administration has deflected responsibility, framing the crisis as Europe's to manage. It has fallen to countries such as Brazil, China,
India, Mexico, and Russia to instead build the firewall that will shield the rest of the world from Europe. The welcome momentum in negotiations between the United
States and Pacific Rim countries on the Trans-Pacific Partnership free trade agreement does not undo over three years of drift in U.S. trade policy that has jeopardized
the very global trading system that the United States built and powered in the postwar era. The only trade deals that the Obama administration has passed -- with
Leadership was never easy: Resistance from allies, protectionist pressures at home, and resource-draining
wars all stood in the way. But capitalism spread, trade and financial markets were liberalized, and
emerging-market crises were defeated. Global economic integration forged ahead . Today, American
leadership is again essential. China prioritizes mercantilism over multilateralism, and emerging nations have yet to fully step up to the plate when
it comes to global governance, while Europe and Japan are neither able nor willing to lead. In placing their faith in multilateralism, liberal
institutionalists often fail to realize that the world economic order is built on American primacy and
power, and Washington's willingness to project it. To lead abroad, the United States must reform at home by imposing ironclad
fiscal discipline, cutting taxes and red tape for businesses, and locking in long-term policies -- summoning the private sector to reform schools and rebuild
the United States needs to focus on preempting instability and integrating the global economy. It should push the IMF to address financial risks before they mushroom
infrastructure, for instance -- that harness the productivity of America's future generations. Abroad,
into catastrophes, revise the multilateral trade regime to allow for fast deals among a critical mass of members rather than agonizing, decade-long talks requiring the
consent of the full membership, and work toward unfettered global financial markets -- all the while deepening access to U.S. goods, services, and investment around
A Trans-Pacific Partnership agreement and a transatlantic free trade pact are low-hanging
fruits that can jump-start global growth without any new stimulus dollars. The quintessential
challenge facing U.S. policymakers is to convince other nations to buy into a rules-based order
rather than respond to the siren calls of currency wars and capital controls. For example, with most
emerging economies uneasy about Beijing's trade and foreign policies, Washington must
incentivize others to take the high ground and strengthen investor protections, enforce
intellectual property rights, and adhere to trade rules. With others playing by the rules of the
game, a misbehaving China would be turned into a pariah. A stable, integrated, and growing
world economy serves our national interests. But such a world is America's to make.
the world.
Only Strong US support has sustained global trade so far but protectionism
increasing and resistance growing trends and data confirm - tech advances,
economic pressures and political incentives have eroded resilience Jasinowski 13. [Jerry, economist, former President of the National Association of Manufacturers, "Fast track on track" Huffington Post
-- December 18 -- www.huffingtonpost.com/jerry-jasinowski/fast-track-on-track_b_4464996.html]
Advances in technology makes it possible for more companies to remain within their national borders.
Indeed, advances in technology are making it possible for a growing number of U.S. manufacturing
companies to bring production back to our country. And weak economic growth such as characterizes
most of the world today inevitably fosters pressure for protectionism. To this I would add that huge state-owned
enterprises like those in Russia, China and Brazil are inward looking and inherently averse to free trade.
The data confirms this unwholesome trend. Cross-border investment inflows fell by 18 percent in
2012, and it is expected they will show a similar decline this year. Last year, G-20 countries passed 23
percent more protectionist measures than they did in 200, and smaller nations also are reporting more
protectionist measures. The fact is - free trade has always been a hard sell because
every nation fears increased competition and the benefits are difficult to quantify. We are living
in an era of free trade mainly because the United States has fought for
it. To its credit, the Obama Administration recognizes the importance of this legacy and is committed to its
continuance. Early Congressional approval of fast track will augur well for the future of a growing global economy.
iconic founder and president of FedEx Corp, boldly spoke out about Chinas protectionist
policies in the month he was due to visit the country to negotiate for more freedom to operate there . In a
keynote speech to delegates at the World Cargo Symposium in Los Angeles, he blamed governments around the world for
weakening global trade and called on them to stop using protectionist measures . FedEx has been trying to grow in
the Chinese market for some time, but has been thwarted and even shrunk by the governments reluctance to re-issue it with licences. In 2009,
FedEx had 58 branches it now has 37 and is waiting for 21 more licences none of which are for Beijing. Those remaining licences may be
issued in May, but in the meantime domestic rivals have gathered pace. Mr Smith pinpointed the countrys indigenous innovation policy which
favoured local companies over foreign competitors despite WTO prohibitions to the contrary. Partly as a result of these protectionist measures,
he said, Chinas logistics costs are about 20% of GDP compared with about 9 to 9.5% in the US. Such inefficiencies make it hard for the
Chinese economy to evolve to a more consumer-driven economy versus its current model, based on exports and infrastructure investment.
Russia, which in January expanded the list of documents required to ship goods to individual customers, thus slowing customs clearance for
online retailing and causing integrators to temporarily suspend shipments there, was also highlighted. Last month, FedEx couldnt ship pillows,
which were in short supply, to Olympic athletes in Sochi because Russian customs restrictions would cause a six-week delay in delivery, Mr
Smith revealed. Practising the art of efficiency by using a similar speech to the one he presented at last weeks TPM conference in Long Beach,
Mr Smith noted that global trade had helped take tens of millions of people out of poverty after the second world war and that the more liberal
trading policies of countries such as China, India and Brazil had further taken hundreds of millions more out of poverty in the early 1990s. But,
he warned: One big reason trade is no longer growing rapidly is the rise of protectionismOver the last few
years almost every trading nation has instituted policies that permit greater regulatory intervention in the
trade processesoften justified by overzealous security considerations . Unfortunately, in many other
cases, the protectionism is overt and politically driven. The result of all these factors is that exports have
been declining with most major trading partners since 2010. His comments were backed by Brian
Pearce, chief economist for IATA, who noted that nearly 500 protectionist measures were taken in 2012,
lowering international trade growth. Beggar-my-neighbour policies dont work as everyone does it, he said. Governments need
to implement the Bali agreement and as a policy issue, we need to lobby governments. World trade is much weaker than it
should have been. Growth has flatlined since the recovery and has only moved as fast as domestic
consumption. Claiming that innovation, investment and larger markets had been the main drivers to reducing poverty, Mr Smith noted that
last year the top 20 world economies passed 23% more protectionist measures than in 2009 . T
WTO dispute-resolution system has neither the capacity to handle a high load of disputes, nor the
power to enforce its laws through any means other than by permitting reciprocal retaliation.
Therefore while the current general expectation is that countries will abide by their WTO
commitments, this obviously cannot be taken for granted in the event of an all-out trade war.
If countries do choose to raise tariffs levels and other barriers above WTO limits, we may see a severe
contraction of trade not seen since enactment of the Smoot Hawley tariffs in the wake of the Great
Depression. Following the Smoot Hawley Act, the effective U.S. tariff rate rose from 13.5 percent
in 1929 to 19.8 percent by 1933, encouraging retaliation on the part of U.S. trading partners. The
combined effect of falling demand and increased protection led to U.S. imports falling from $1.3
billion in 1929 to $390 million in 1932. U.S. exports fell from $2.3 billion to $784 million over
the same period. Over the same period, world trade declined by 33 percent, and the increase in
both tariff and non-tariff barriers may have accounted for a little over half this decline.14
However, even the Smoot Hawley experience may underestimate the potential damages from
protectionism today. The impact of raised tariff barriers in the 1930s was likely mitigated by the relative
unimportance of trade in the U.S. economy during this period. In 1929, imports accounted for only
4.2 percent of GNP and exports only 5 percent. Today, imports comprise over 14 percent of GDP and
exports 11 percent. Average U.S. tariffs today are also a fraction of what they were in 1929; even a
small increase would significantly affect trade flows. Trade shares are much higher in other
countries, and tariffs are on average less than one fourth of what they were in 1929. Raising tariffs today
would likely inflict much greater damage on the global economy.
stocks and bonds. A significant repatriation of funds would thus slow the pace of the dollar
decline and the rise in rates. The ensuing recession, combined with the cheaper dollar, would
eventually combine to improve the trade balance. Although the period of global rebalancing
would be painful for U.S. consumers and workers, it would be even harder on the European and
Japanese economies, with their propensity for deflation and stagnation. Such a transitory
adjustment would be unpleasant, but it would not undermine the economic foundations of U.S.
hegemony.
The U.S. dollar will remain dominant in global trade, payments, and capital flows , based as it is in a
country with safe, well-regulated financial markets. Provided U.S. firms maintain their entrepreneurial
edge--and despite much anxiety, there is little reason to expect otherwise global asset managers will
continue to want to hold portfolios rich in U.S. corporate stocks and bonds . Although foreign private
demand for U.S. assets will fluctuate--witness the slowdown in purchases that precipitated the
decline in the U.S. dollar in 2002 and 2003-rapid growth of world financial wealth will allow the
proportion of U.S. assets held by foreigners to increase.
For foreign central banks (as well as commercial financial institutions), U.S. Treasury bonds,
government-supported agency bonds, and deposits in highly rated banks will remain, for the
foreseeable future, the chief sources of liquid reserve assets. Many analysts have pointed to the
euro as a threat to the dollar's status as the world's central reserve currency. But the continuing
strength of the U.S. economy relative to the European Union's and the structure of European
capital markets make such a prospect highly unlikely. On the basis of likely demographic and
productivity growth differentials, Adam Posen of the Institute for International Economics
estimates that the U.S. economy will be at least 20 percent larger than that of the EU in 2020.
The United States will maintain its 22 percent share of world output, but Europe's share will, in
the absence of serious structural reforms, shrink by 3 to 5 percent. Moreover, European
government bond markets, although larger than the U.S. Treasury market, are divided among five
large countries and a host of smaller ones, greatly reducing liquidity, and European corporate
bond and equity markets are smaller than their U.S. counterparts. With Asian capital markets still
in their infancy, it will be a very long time before the pre-eminence of the dollar and U.S. capital
markets is challenged.
At the peak of its global power the United Kingdom was a net creditor, but as it entered the
twentieth century, it started losing its economic dominance to Germany and the United States. In
contrast, the United States is a large net debtor. But in its case, no plausible challenger to its
economic leadership exists, and its share of the global economy will not decline. Focusing
exclusively on the NIIP obscures the United States' institutional, technological, and demographic
advantages.
Such advantages are further bolstered by the underlying complementarities between the U.S. economy
and the economies of the developing world--especially those in Asia. The United States continues to
reap major gains from what Charles de Gaulle called its "exorbitant privilege," its unique role in
providing global liquidity by running chronic external imbalance s. The resulting inflow of productivityenhancing capital has strengthened its underlying economic position . Only one development could upset
this optimistic prognosis: an end to the technological dynamism, openness to trade, and flexibility that
have powered the U.S. economy. The biggest threat to U.S. hegemony, accordingly, stems not from
the sentiments of foreign investors, but from protectionism and isolationism at home.
The governing body has consistently, if hypocritically in view of its subsequent actions, issued statements
emphasizing the importance of avoiding protectionism amid a global financial crisis, only to have its members do the
opposite. Too often the temptation among G-20 countries to subsidize and protect their own has proven too
great to resist.
The political tension between protection-seeking domestic constituencies and those in favor of more open trade is beginning to appear in the
climate change debate. Importantly, the free flow of goods and environmental soundness are not necessarily at
odds.
Indeed, because
trade leads to wealth, and wealth to an increased desire and ability to protect the
environment, the two are complementary. Nonetheless, many G-20 leaders are doing their best to set them up as being inalterably
opposed. President Sarkozy earlier this month became the latest politician to call for carbon tariffs to "level the playing field" for French products
that will attract a carbon tax and yet compete with untaxed imports.
Similar sentiments are held among certain U.S. politicians too. Senators from manufacturing states crucial to securing passage of a climate bill
have repeatedly insisted that their support depends on protection for vulnerable domestic industries. They continue to argue that Chinese imports
are threatening U.S. jobs in energy intensive industries, even though more than two-thirds of those types of products come from other similarly
rich (and, in some cases, greener) countries.
President Obama spoke out against punitive trade measures inserted into the House bill when it passed in June, but declined to say whether he
would veto a final bill if it contained the same elements. He has demonstrated little willingness to resist the siren song of protectionism, judging
from his actions on trade since assuming the presidency. He also displayed a lack of appreciation for the foreign policy implications of
protectionism in announcing tariffs on Chinese tires just prior to a climate summit where the country's cooperation was considered crucial.
Alienating the Chinese by threatening them with trade barriers would be a big mistake . And considering that the
U.S. accounts for less than one percent of the market for Chinese energy-intensive goods as is, tariffs
Protectionism in the name of climate change carries little upside and much risk, for the environment and
for the global economy. Leaders who care about either or both goals should start fulfilling their own
pledges on open trade
Food insecurity makes all other impacts inevitable its the fuse that will ignite war,
genocide and terrorism
Trudell, 2005
Robert H. (J.D. Syracuse University College of Law) [Food Security Emergencies and the
Power of Eminent Domain: A Domestic Legal Tool to Treat a Global Problem, Syracuse Journal
of International Law and Commerce, Fall, p. lexis]
Today, more than 842 million people - nearly three times the population of the United States - are
chronically hungry. n43 "Chronic hunger is a profound, debilitating human experience that affects the
ability of individuals to work productively, think clearly, and resist disease . It also has devastating
consequences for society: it drains economies, destabilizes governments, and reaches across international
boundaries." n44 The enormous number of chronically hungry people conjures up a critical question: how can we feed these people?
While the rate of population growth has been leveling off in the developed, wealthy countries of the world, the populations of the poorest
countries and regions of the world still grow at an alarming pace. n45 Population statisticians refer to this phenomenon as population momentum.
n46 Of the seventeen countries whose women average six or more births in a lifetime, all but two are in Africa. n47 In sub-Saharan Africa,
millions are undernourished and millions more live on a dollar a day, making it the most poverty-stricken region in the world today. n48 [*285]
Chronic hunger and poverty are the rock-and-a-hard-place in between which the people of sub-Saharan
Africa find themselves today. One tragedy endlessly feeds upon and exacerbates the other because a
person needs money to buy food, but she (or he) cannot earn money when she is chronically hungry. n49
The food security issues of this region are a global concern . Silvio Berlusconi, Prime Minister of Italy, and Chairperson of
the 2002 World Food Summit in Rome said, "Together with terrorism, hunger is one of the greatest problems the international community is
facing." n50
Human security is a value which can be broadly defined as both the "freedom from fear" and the
"freedom from want." n51 Until recently, security was largely a concern arising out of the conflict among states, i.e. state security, which
can be summed up in the phrase "military preparedness." n52 Today, it is recognized that the achievement of freedom from want is as important a
goal as the achievement of freedom from fear and countries must arm themselves against such fear by addressing food insecurity. n53 In an
editorial in the Economist, Kofi Annan, Secretary General of the United Nations, wrote that today's threats to security - terrorism,
food security and poverty - are all interrelated so that no one country can tackle them alone . n54
For example, keeping our food supply secure plays a direct role in achieving freedom from fear. The State Department has been studying the
possibilities of food-borne bioterrorism, introducing the national security element to food security concerns. n55 Likewise, in December [*286]
2004, during his resignation announcement, Tommy Thompson, the former Secretary of the Health and Human Services Department, stated: "For
the life of me, I cannot understand why the terrorists have not attacked our food supply, because it is so easy to do." n56 Yet it is a mistake to
think of global security only in military terms. n57
Food security deserves its place in any long-term calculation regarding global security. Widespread
chronic hunger causes widespread instability and debilitating poverty and decreases all of our safety, for
example from the increased threat from global terrorism. n58 Widespread instability is an unmistakable
characteristic of life in sub-Saharan Africa . n59 Food insecurity, therefore, causes global insecurity
because widespread instability in places like sub-Saharan Africa threatens all of our safety. Food
insecurity in the unstable regions of the world must be taken on now lest we find ourselves facing some
far worse danger in the days to come.
of the nation's top economists say trade agreements have been good for most
Americans, and there should be opportunities here to increase exports and
encourage innovation . The labor unions who have pushed Democrats to kill the fast-track
authority the president needs to complete the
trade agreement argue that the pact would stifle pay increases and cost
jobs. But economists suggest it would slightly raise U.S. incomes, and many of the nation's
manufacturing jobs are being lost to improvements in technology, not free trade agreements . The union
opposition also has prompted Democratic presidential candidate Hillary Clinton to hedge her once-unqualified support of the Pacific agreement,
but the economic
into populist protectionism . The United States needs to create more good-paying jobs
for workers, but avoiding free trade agreements is not the way to do it. What the nation cannot
afford is to watch from afar as Asia grows and China expands
its influence there . Congress should grant Obama the fast-track authority he needs to complete negotiations on the transPacific trade agreement, and then it can fully explore the details and vote it up or down.
New trade deals key to revive manufacturing and boost agriculture - concerns are
wrong and service sector gains outweigh anyway
Boustany amd Zoellick 12-28. [Charles, senior member of the House Ways and Means Committee, Robert, former USTR,
president of the World Bank, "A Trade Opportunity for Obama and the New Congress" Wall Street Journal -- www.wsj.com/articles/charlesboustany-and-robert-b-zoellick-a-trade-opportunity-for-obama-and-the-new-congress-1419811308]
So why does trade matter? First, Americans are feeling squeezed. On the eve of the election, Pew Research reported that 79% of
Americans considered the economy to be poor or at best fair. A boost
---HEG IMPACT---
to the Pacific, the rise of China is the great balance of power challenge of our time. The TPP
isnt a Pacific panacea, but it is an important part of the equation. It would reinforce the United States
position in the region and provide strategic reassurance to the many Asia-Pacific countries that worry
about Chinas rise that is, everyone except North Korea. It would be a new, strong multilateral accord in a
region that very much needs more multilateral frameworks. These would be stability-enhancing
developments. Third, TPP and TTIP pacts would strengthen Obamas personal credibility and the United
States international leadership position. Obamas failure to enforce his red line on the use of chemical
weapons by the regime of Syrian President Bashar al-Assad has done real damage to his credibility in the Middle East,
Asia and around the world. Effective presidential leadership in these trade negotiations would help
Security Strategy makes clear, the rules-based system we have led since
World War II is competing against alternative, more mercantilist models. Unlike past
primarily as an enabler for military power. This basic belief was widely adopted and held sway among most strategists through
the Cold War. More recently, however, leaders and strategic thinkers around the world have come to see
economic strength as more than merely a purse for military power. They now understand prosperity to be
a principal means by which countries exercise power itself . As the
influence abroad. In this environment, trade has emerged as one of Americas most
important foreign policy tools both for increasing our
strength at home and for exercising it abroad . At home, one-third of our
economic growth since 2009 is due to the increase in U.S. exports . Last year, the United States exported $2.35 trillion in
goods and services, a record amount that supported over 11 million U.S. jobs. During a period of uneven global growth, growing exports
are a key driver of Americas resurgence. Above and beyond its immediate benefits for the U.S.
economy, President Obamas trade agenda is advancing three objectives outlined in the N ational Security Strategy:
setting new rules of the road, strengthening our partnerships, and promoting inclusive development. In the
Asia Pacific, were negotiating the Trans-Pacific Partnership (TPP), which will help set rules of the road
attractive place to invest and do business a highly skilled and innovative workforce, a large market backed by a strong rule of
law, and an abundant supply of affordable energy well be one step closer to becoming the worlds production
platform of choice, further increasing our economic strength and influence . Our trade policy aims not only to update
the global economic architecture but also to expand it through efforts like the African Growth and Opportunity Act. The cornerstone of U.S. trade
policy with sub-Saharan Africa since 2001, this program has supported hundreds of thousands of jobs in the region and created countless market
opportunities for American businesses. Updating and renewing this program to reflect changes within Africa and between African countries and
their trading partners would send a strong message that America remains deeply committed to this dynamic region and to promoting broad-based
development through trade. The geopolitical stakes become even clearer when you consider the alternatives. In
the Asia-Pacific region, for example, over 200 trade deals have been struck in recent years and more are
currently under negotiation. Unlike TPP and TTIP, the vast majority of these agreements make no commitment to protecting labor
rights and environmental standards, creating disciplines on state-owned enterprises, and promoting the digital economy. We face an
important choice. We can lead and ensure that the global trading system reflects our values and our
interests, or we can cede that role to others, which will inevitably
create a less advantageous position for our workers and our businesses. The
economic implications are stark, but so too are the strategic
ones. Sitting on the sidelines, well see our partnerships
weakened as theyre deprived of the strength that comes from
enhanced economic relationships, and well miss the
opportunity to forge new habits of cooperation among key
partners . We cannot allow that to happen. As economic power has become
more consequential in world affairs, so too has American
leadership on trade . If the U nited S tates leads on trade, it can
strengthen the rules-based order . For over seven decades, American leadership of
the global trading system has helped bring jobs to our shores, partners to our defense, and peace and
prosperity to those around the world who have embraced openness and fairness . Economically
in the White House have pushed for greater openness to trade, largely because expanding
political consciousness. Despite the fact that fewer than 10 percent of Americans work in manufacturing and that Americas role in international
trade is increasingly focused on design and technological development, and providing services, the iconic assembly line worker is the poster child
for U.S. trade policy. He or she isnt doing as well these days. So even pro-trade members of Congress are wary of trade votes. No politician
wants to hear the wrath of out-of-work constituents on local TV news or splashed across negative campaign advertising come election time.
Obama and his team have plenty of hard work ahead to convince even Republicans that a vote in favor of his trade deals wont be Exhibit
Number 1 when a political opponent want to suggest that he or she has lost touch with voters. One otherwise pro-trade GOP lawmaker privately
said, Give us an excuse not to vote on trade. Steamrolling Democrats into a pro-trade vote may prove even harder. The common wisdom is that
Republicans need a sizable corpus of Democrats to fall on their swords and vote yes on trade deals. That number could be as few as 20 in the
House, but the smaller the number, the greater the chance recalcitrant Republicans who feel electorally vulnerable will refuse to go along. At
primary issue is the Trans-Pacific Partnership , a free trade agreement being negotiated
with 11 other countries in the Asia-Pacific region. The economic rationale for the TPP is
significant . Trade within Asia has been booming, largely in component parts that have been assembled into finished
products in China and exported primarily to the United States and Europe. The TPP would draw the United
States closer to the boom . But the economics are changing because Asians are getting
richer. This is having two effects. First, Asians are increasingly able to buy more things from abroad.
Second, the United States as a manufacturing center is becoming more viable as production in Asia is
becoming more expensive, although dont expect many new jobs on the assembly line here, unless you are a robot or a semiconductor
chip. So putting the TPP in place is a way to set the table for American
this is a negotiation that covers 40% of world trade, and a potential second tranche
will cover a lot more. This is a strategic opportunity that should not be ignored or squandered. Americans should be
excited about TPP with its focus is on Asia and Latin America. The rest of the world is important to us too, and we have a similar negotiation underway with the European Union (the so-called TTIP negotiations). But the
Asia-Pacific is where much of the worlds growth in purchasing power will reside in the decades to come,
and it takes purchasing power to buy our goods and services and create U.S. jobs . We have long discussed
the benefits of a free trade agreement with Japan, and that alone makes TPP worthwhile. But well gain
have an outcome. Too much is at stake, for
from boosting exports to countries like Australia, New Zealand, Malaysia and Vietnam as well. The
intangibles of TPP are important too, especially the national security/foreign policy benefits of
demonstrating American leadership in that part of the world. Should we leave a vacuum, China will
eagerly fill it. Better that we do our part to conclude TPP successfully and then invite China to join - on
terms established by us and our negotiating partners, and not on terms presented by them. So why all the fuss right now? Because we have a
If
the U.S. is able to enact TPA legislation during the first quarter of 2015, negotiators will have a reasonably good chance of
quickly wrapping up TPP. That will not be easy, for time is of the essence . Once finalized, the agreement will need to be translated into a host
of languages, scrubbed by the lawyers, implementing legislation will need to be agreed between the administration and the
Congressional trade committees, the U.S. International Trade Commission will need to report to Congress on the probable economic impact of the agreement here in the U.S., and the
Congressional trade committees will undoubtedly wish to hold hearings and conduct mock markups on an agreement of this importance. That all takes time, so lets hope everyone
proceeds expeditiously, and gives TPP the fair hearing it deserves before the political season gets
underway. Some of my Republican colleagues may ask: Why should we do this, and give President Obama a legacy on trade that he might not otherwise receive? The answer is that this will be a splendid legacy for
everyone Republican and Democrat alike - who votes for it. TPP is vital for American business and American agriculture. It will create
jobs and keep our economy dynamic and growing. If we postpone until 2017, there may well be no legacy
for anyone. The opportunity will have been squandered and our grandchildren will be playing by Chinas
rules. That would be a huge blow to American leadership , to the leadership of both our
fast track, but proponents must win that political battle. Delaying fast track will simply delay final offers the other 11 TPP countries are prepared to grant to the U.S.; if fast track is not approved well never see those offers.
parties, and to the economic wellbeing of millions of people here and abroad.
eroded confidence in Americas staying power . Trade policy can help reestablish Americas international economic commitment; U.S. economic interests underpin
political and security ties. New economic links with key
security partners on the Pacific and Atlantic rims of the Eurasian continents advance
our primary geopolitical interests . And trade policy enlists Americas greatest asset
its dynamic private sectorin support of U.S. foreign policy. Just as American commerce in the 19th and 20th centuries sailed
with missionaries, engineers and educators, so 21st-century trade, investment and business networks will promote the causes of civil society,
human rights, the environment and gender equality.
Some lawmakers have even viewed TPA legislation as a vehicle to address the perceived costs of free trade for the U.S. economy. However, using
TPA renewal to redress the suspected costs of trade is an ill-advised idea. TPA is an instrument that not only enables America to secure increased
access to overseas markets but also provides the unique opportunity for the U.S. to reduce its own barriers and advance economic freedom.
Congress and the President can help the American economy by removing barriers that limit its
competitiveness. With open trade and investment ensured, the interplay of low tax rates and efficient
regulations could effectively enhance Americas economic freedom . Entangling TPA with a protectionist agenda, on the
other hand, would not serve Americas interests in the global market.
---RANDOM---
T/ LA/Mexico
TPP outweighs aff internal links, turns and solves Latin America Impacts, including
mexico failure guarantees economic and diplomatic crisis, collapsing stability
throughout Latin America AND in mexico success contains and overcomes US
geostrategic insecurity threats - key to economic integration, regional democracy, broad
cooperation and US influence
Marczak and Workman 14. Jason Marczak is deputy director of the Atlantic Councils Adrienne Arsht Latin America Center.
Garrett Workman is associate director of the Atlantic Councils Global Business and Economics Program (2014, TPA critical for US leadership in
the Pacific, Aug 1 -- http://thehill.com/blogs/congress-blog/foreign-policy/213955-tpa-critical-for-us-leadership-in-the-pacific)
Securing U.S. economic and strategic leadership across the Pacific depends on effective
commercial diplomacy underpinned by a clear twenty-first century geopolitical strategy. Congress
should be a vital partner in the ongoing American rebalance to Asia and doing so requires the timely passage
of trade promotion authority (TPA). Only with TPAa demonstration of Congress commitment to conclude an ambitious Trans-Pacific
Partnership (TPP) agreementwill the administration be able to negotiate the best possible deal. TPA is essential so that other countries take US
positions seriously and agree to a deal that benefits US workers and consumers. If successful, TPP
perhaps even more significant. Congress should be mindful of TPP's major security-policy
implications. Through increased economic ties, TPP will reassure US partners across the Pacific
Rim and act as a counterbalance to China. U.S. policymakers need to accept that the United States is the de facto
TPP leader. Countries across the Western Hemisphere would suffer major economic and
T/ Ag
TPP key to US ag crucial to maintain competitiveness and exports solves
economy and global food
Veneman and Glickman 3-11. [Ann, Ag Secretary for GW Bush, Dan, Ag Secretary for Clinton, "Trade promotion authority
sows growth in American agriculture" The Hill -- thehill.com/opinion/op-ed/235444-trade-promotion-authority-sows-growth-in-americanagriculture]
As former secretaries of Agriculture, we know firsthand the importance of international trade to Americas farm and
ranch families, to our nations rural communities, and to the U.S. economy as a whole. Theres no other
sector of the U.S. economy where the link between trade and prosperity is clearer than in agriculture.
Foreign sales account for almost a third of total U.S. farm income. For many commodities, the bulk of
total production is now exported, with about 80 percent of U.S.-grown cotton, over two-thirds of U.S. tree nuts and
about half of U.S. rice, soybeans and wheat destined for foreign markets . Not only do those international sales
benefit the farmers who grow the products, they help support more than 1 million American jobs in both farming and related
sectors such as food processing and transportation. Americas farmers and ranchers are the most productive in the world. In
fact, their productivity is growing faster than domestic food demand . Thus, the continued success of our farm
and food sector relies on having access to the 95 percent of the worlds consumers who live outside the
United States. Population growth and rising incomes particularly in the developing world are
creating significant new opportunities and U.S. farmers, ranchers and food processors are well positioned
to capitalize on this growing global demand. But for them to do this, we first need to break down trade
barriers so that our agriculture sector can compete on a level playing field. And we need trade agreements
to make that happen. Trade agreements are the most effective way to eliminate foreign tariffs, unscientific
regulatory barriers, and bureaucratic administrative impediments to trade. During our respective tenures at the helm
of the Department of Agriculture, from 1995 to 2005, we were overseeing the implementation of the World Trade Organization (WTO) Uruguay
Round and NAFTA agreements, Chinas accession to the WTO, and the negotiation of a number of bilateral free trade pacts. We also ensured that
U.S. products were able to compete in countries that had started to negotiate preferential agreements that were excluding American products.
Thanks in part to these efforts, we saw average tariffs on U.S. exports fall and helped ensure that U.S. products were able to better compete in
other countries. Harvesting those gains has been momentous for U.S. farming. New opportunities under these agreements are a key reason U.S.
agriculture exports are at record levels, above $150 billion per year. Despite the success U.S. farm exports have enjoyed over
the past two decades, we
still have more to do. The United States is now working to conclude negotiations for the
significantly reduce the barriers U.S. products face in the fast-growing
Asia-Pacific region. If we dont close the TPP deal, U.S. producers will be at a competitive disadvantage as
Trans-Pacific Partnership (TPP), which will
Australia, New Zealand, the European Union and other countries aggressively negotiate trade agreements in the region
employees earned over 20% more than the average manufacturing job, and the U.S. consistently runs a
trade surplus in business services. Over the past five years, the World Bank reports, about 75% of the worlds growth
has been in emerging markets, which generally have higher barriers to trade . As Americas highly
productive farmers and ranchers have seen, growing world markets are the drivers of higher sales. With
the boom in U.S. energy innovation and production, fuel exports could spur more investment and jobs in
that sector, too
T/ Pharma Industry
TPP key to the pharmaceutical industry and the econ overall.
Hartley 12-31. [Jon, economics contributor, "A Free Trade New Year's Resolution For Congress and the White House" Forbes -www.forbes.com/sites/jonhartley/2014/12/31/a-free-trade-new-years-resolution-for-congress-and-the-white-house/]
The Trans Pacific Partnership (T.P.P): A Free Trade Agreement with Asia First, the Trans Pacific Partnership (T.P.P) between the U.S. and
nearly a dozen Asian countries would
be the largest trade deal ever recorded. Countries at the negotiating table
comprise close to 40% of the worlds GDP. Part of what the T.P.P. would do is increase the ability of
certain corporations to assert control over intellectual property in foreign countries . China, though it has yet to
officially join the T.P.P. talks, has shown interest in free-trade negotiations with the U.S. while leading the Asia-only Regional Comprehensive
Economic Partnership. American corporations, in particular pharmaceutical companies, could benefit
enormously in expanding exports to China and other Asian countries through gaining intellectual property rights in
emerging market countries that have largely failed to enforce intellectual property theft and continue to be
rife with fraud. Indeed, a report by The Commission on the Theft of American Intellectual Property estimated that China alone is behind
50% to 80% of IP theft cases globally, costing the U.S. economy $300-billion every year and millions of jobs.
Aff
Senates ability to block or complicate the deal. Any deal the president submits to
Fast Track authority ensures TPP will pass WITH EASE structural factors, last
realistic barrier, and passage was a white flag for deal opponents in congress
Lopez, 6/24 Laura Barron-Lopez, covers Congress for The Huffington Post. Previously,
she reported for The Hill and E&E Publishing's Greenwire, Huffington Post, 6/24/15,
http://www.huffingtonpost.com/2015/06/24/pelosi-backs-taa_n_7654954.html
Pelosi Stands Down On TAA, Clearing Way For Obama's Trade Agenda House Minority Leader Nancy Pelosi (D-Calif.)
waved the white flag on Wednesday, telling her caucus she would support passage of a key
measure tethered to President Barack Obama's broader trade agenda . Her support
all but guarantees that the measure will succeed, thereby handing Obama a major victory on
trade. Pelosi and House Democrats were the last obstacle against Republican and pro-trade
Democrats' efforts to grant Obama so-called "fast-track" authority to clear major trade deals,
such as the Trans-Pacific Partnership , through Congress with
ease . House Democrats succeeded in blocking fast-track nearly two weeks ago when they defeated Trade Adjustment Assistance, which was tied to the fasttrack legislation. TAA provides aid to workers who have lost their jobs as a result of trade deals. In response to the defeat of TAA, Obama and Republican leaders
crafted a new plan to pass fast-track, also known as Trade Promotion Authority, as a standalone bill without TAA. The clean fast-track bill, already passed by the
House, is expected to sail through the Senate later Wednesday and then on to Obama's desk. Next, the Senate will immediately move to pass TAA for workers, which
is now attached to an African trade preferences bill, after which it will be sent back to the House. And with Pelosi's support, TAA should have the votes for passage.
"Im disappointed that the TAA bill isnt nearly as robust as it should be in light of a trade agreement that encompasses 40 percent of the global economy," Pelosi
wrote in a Dear Colleague letter to House Democrats. "While we may not all vote in the same manner on TAA, I will support its passage because it can open the door
to a full debate on TPP." Obama is currently negotiating the TPP with 11 Pacific nations. The TPP and two other large trade deals that the administration is working
argue that such deals fail to protect workers at home, lack sufficiently robust environmental standards and financial regulations, and do nothing to stop unfair currency
manipulation. "My standard for any trade agreement is that it must create good-paying 21st century jobs, increase the paychecks of American workers, and it must do
so recognizing the relationship between commerce and climate," Pelosi wrote. With
approve the deals as quickly as one month after that, with no changes
allowed .
TPP Guaranteed - no filibuster, dems dont want the fight, TPA passage make
political downsides a sunk cost fights on other issues dont spillover to trade
anyway
Weisman, 6/23 Jonathan, Economic Policy Reporter @ NYT, 6/23/15,
http://www.nytimes.com/2015/06/24/us/politics/senate-vote-on-trade-bill.html
The Senate
to end debate on legislation granting Mr. Obama enhanced negotiating powers to
complete a major Pacific trade accord, virtually assuring final passage Wednesday of Mr. Obamas
top legislative priority in his final years in office. The procedural vote of 60 to 37 just reached the minimum needed, but final Senate passage will require
President Obamas ambitious trade push is back on track, after several near-death moments, in large measure because top Republicans stood by him.
on Tuesday narrowly voted
only 51 votes. The House approved trade promotion authority last week. Representative Nancy Pelosi, the Democratic leader in the House, criticized the Republicans
approach, saying it would hinder the ability to address climate change and its connection to commerce through the broader trade bill.House Sends Trade Bill Back to
Senate in Bid to Outflank FoesJUNE 18, 2015 People harvesting lychee in Vietnam, which is the only Communist member of the prospective Trans-Pacific
Partnership.Failure of Obamas Trans-Pacific Trade Deal Could Hurt U.S. Influence in AsiaJUNE 16, 2015 House Republicans and White House Try to Revive Trade
Bill Stalled by DemocratsJUNE 15, 2015 With
congressional support for fast track authority, the president can press
for final agreement on the Trans-Pacific Partnership, a legacy-defining accord linking 40 percent of the worlds economy from
Canada and Chile to Japan and Australia in a web of rules governing Pacific commerce. His administration can also bear down on a second agreement with Europe
known as the Transatlantic Trade and Investment Partnership knowing
legislation will
most likely be on the presidents desk, giving him the power to complete the Trans-Pacific Partnership. He
House found a parliamentary way to corner the Democratic opponents, by separating the two pieces of the bill. By Wednesday evening,
can sign it whether or not the House passes worker dislocation assistance when it is scheduled to come to a vote late Thursday. Josh Earnest, the White House press
secretary, said House Democrats should get on board. The previous explanation that we heard from some Democrats who voted against trade adjustment assistance
something that Democrats have steadfastly supported for decades is that they were doing that in an effort to slow down the advancement of trade promotion
authority legislation, he said. That will no longer be a factor to consider. The
tortuous path of the trade legislation over the last six months
created the unusual alliance between Mr. Obama and Republican leaders, who otherwise have
worked to thwart him on domestic and foreign policies. Occasionally, even the leader of the Democratic Party,
the president of the United States, gets things right, said Senator John Cornyn of Texas, the No. 2 Republican. In the end, Mr. McConnell all but
secured the top remaining legislative priority of a president he once vowed to turn out after one term. The Senate is set on
Wednesday to give final approval to trade promotion authority, then vote to end debate on a separate bill that attaches worker dislocation assistance to a broadly
popular bill extending a trade agreement with several African countries. To attract more votes, Senate leaders added another provision speeding up action against
foreign competitors who are found to be dumping selling steel and other products in the United States at artificially low prices in an effort to put domestic
manufacturers out of business. Senators would vote on that package on Thursday, and if it is approved, as expected, it would go to the House the same day. This time,
if Democrats vote down trade adjustment assistance, they will be effectively killing a worker education and retraining program created during the Kennedy
administration and that party members have nurtured ever since, but will still most likely watch Mr. Obama sign the fast-track bill into law. I dont think any
Democrats voted against T.A.A. last time because they opposed T.A.A., said Representative Steny Hoyer of Maryland, the Houses No. 2 Democrat. I will concede
there will be a different context around the next vote. At the same time, House and Senate negotiators will begin hashing out differences over a separate bill
enhancing measures to police trade agreements. Opponents had hoped that trade promotion authority without worker assistance would run into trouble in the Senate.
And some Democrats tried to stoke fears that Congress could give the president the power to complete major trade deals without assistance to affected workers. How
shameful is that? said Senator Sherrod Brown, Democrat of Ohio, who led the opposition to trade promotion authority. Were making this decision knowing people
will lose their jobs because of our actions. Yet we are not going to pass this assistance. In the end, though ,
already voted once for trade promotion authority understood they were not going
to escape the criticism , especially from the unions. They wanted to be done
with it . Senate Democrats had already taken a lot of hits in getting to this point, said
Senator Ron Wyden of Oregon, the ranking Democrat on the Finance Committee and a co-author of the trade promotion bill.
throughout the government with arbitrary percentage-driven spending cuts. Complicating matters further
in the defense domain are the Talibans resilience in Afghanistan and the stunning emergence of the
Islamic State in Iraq and Syria. During the initial planning and unveiling of the Rebalance, the United
States assumed it would be possible to shift more resources to Asia as it curtailed its commitments in the
Middle East and South Asia,8 yet U.S. engagement in these areas is steadying or growing. New challenges
have also emerged in Europe due to Russian aggression against Ukraine.
pivot is being looked at again, because candidly it cant happen .21 The next day, MacFarland withdrew her
statement, but there are genuine concerns about U.S. ability to continue strengthen commitments to Asia
while managing other worldwide crises as defense resources shrink. For example, despite his many assurances to Asian
allies about the rebalance policy, Hagel warned in 2014 that, if the sequestration cuts continued as planned, the
military would become a hollow force. . . not capable of fulfilling assigned missions.22 Under current plans,
the United States will reduce its military budget by $487 billion in planned cuts over the next ten years on top of a potential additional $500
billion in cuts mandated by sequestration.23 A further concern is that the U.S. military will have to reallocate
resources to carry out new missions in Iraq, Syria, Europe, and other locations.24 Another important
aspect of the defense cut is the plan to reduce the overall size of the active duty U.S. Army to fewer than
450,000 soldiers, which would be its smallest size since before WWII.25 For Seoul, these reductions are
of particular concern because any major Korean contingency in the event of a North Korean invasion or
collapse would require a massive ground force to stabilize the peninsula.26 For Japan and South East
Asian countries, the U.S. Navy presence is a major concern since much of the disputed territory in the
region is maritime. Even if the Navy moves 60 percent of their fleet to the Pacific by 2020, continuing current cuts may result in a
smaller force. For example, the 2015 Department of Defense budget reduced funding for U.S. Navy shipbuilding from $17.9 billion to $14.4
billion.27 The U.S. Air Force, which would be important in any conflict in the Asia-Pacific, has suffered
critical budget cuts relating to its readiness, force structure, and modernization accounts.28 These defense
cutbacks has led the head of U.S. Pacific Command, Adm. Locklear, to state that The ability for the services to
provide the type of maritime coverage, the air coverage of some of the key elements that weve historically needed in
this part of the world for crisis response, have not been available to the level that I would consider
acceptable risk [due to recent budget cutbacks], a response bound to leave U.S. allies uneasy as tensions remain high in East
Asia.29 U.S. efforts to revitalize the U.S. nuclear weapons establishment or develop new non-nuclear technologies, such as through the
Pentagons new Offset Strategy, are also constrained by limited funding.
Asian
Infrastructure Investment Bank (AIIB). This is arguably a far more serious failure to understand and react to a major foreign initiative
than the Burmese example. In 2014, the Chinese government proposed a $50 billion lending institution for the region. The
AIIB is inescapably an alternative to the World Bank and the Asian Development Bank, both of which are guided by Western
financial principles and ensure the influence of Washington or allied nations, like Japan. As the biggest shareholder, founder, and guiding spirit,
China most likely will dominate the AIIB, and thereby increase its economic and political influence even
more in Asia. The founding of the AIIB might not have been such a big deal, but for the Obama
administrations ham-fisted response. In trying to pressure nations not to sign on as shareholders, Obama
has revealed just how little global influence he has. Not only have most Asian nations signed on, but
Americas main allies, including Great Britain, France, Germany, and Italy have joined, as well, ignoring
U.S. pleas to stay out. The Financial Times charitably called Washingtons abandonment by its allies a blow to US foreign policy. But
with the news that stalwart U.S. ally Australia has also joined, veteran and respected Australian commentator Greg Sheridan
scathingly destroys the fiction of American standing in Asia , writing that Canberras decision represents
a colossal defeat for Obama (the article is behind a pay wall, but excerpts are here). Why has
Washington fallen on hard times in Asia? In Sheridans view, Obama is reaping the results of years of
incompetent, distracted diplomacy that has left his administration with neither the continuous
presence, nor the tactical wherewithal, nor the store of goodwill or personal relationships to carry anyone
along with it. As if to underscore Sheridans analysis of Obamas diplomatic crudeness, which includes a reminder that Obama personally
insulted Australian Prime Minister Tony Abbott with a rogue climate change speech at the G-20 in Brisbane last year, Washington accused
London, its closest global ally, of constant accommodation of China, after its decision to join the AIIB. Such is the petulant, panicked response
of an administration that has failed to understand, anticipate, analyze, and respond to changes that will reshape Asias financial landscape. Now
with South Korea considering joining the AIIB, Washington will be left isolated only with its ally Japan as new
regional financial relationships are created. Ultimately, either Obama or his successor will likely bow to reality, and find a face-saving way to join
the AIIB. Yet it will be clear to everyone in Asia, as well as Europe, that the United States was outplayed by China and forced
trade resilient
Zero risk of protectionism
Ahearn 9 [Raymond, CRS Specialist in International Trade and Finance, The Global Economic
Downturn and Protectionism, March 23, 2009,
http://www.policyarchive.org/handle/10207/bitstreams/19395.pdf]
There are a number of reasons why the threat of a return to protectionist, beggar-thy-neighbor
policies could be vastly overstated. Unlike the 1930s, todays global economy has several strong
firewalls to prevent governments from raising trade barriers that result in a cycle of retaliation and
counter-retaliation. These firewalls include more institutionalized obstacles to protectionism built
into the WTO system, more policy instruments to address the economic slowdown, and a more
interdependent and open world economy than existed in the 1930s. In addition, some in todays media
may tend to overstate the threat of protectionism by not always distinguishing between protectionist
actions and protectionist pressures and/or by equating legitimate forms of protection with
protectionism. The fact that there is ample room for increases in trade measures and barriers that
are consistent with the rules and obligations of the WTO often may go unappreciated in some
press coverage. These trade measures and barriers include increases in applied tariffs to bound
rates, and imposition of countervailing and antidumping duties, so-called defensive trade
measures.4 Protection for limited periods of time and under prescribed conditions is built into the rules
of the WTO as a political safety valve and as a recognition of the human and social costs that are
associated with the often wrenching adjustments that accompany increased trade competition.
Firewalls Against Protectionism WTO rules today serve to keep a lid on trade barriers of its 153
members through an elaborate set of mutual obligations and dispute settlement procedures.
Unlike the 1930s when countries could impose higher trade barriers unilaterally without
violating any international agreements or anticipating a foreign reaction, under todays rules
members can take their disputes to the WTO for settlement rather than engaging in reciprocal
retaliatory actions. The fact that countries violating WTO obligations can face WTO-sanctioned
retaliation helps constrain outbreaks of unilateral actions that could be mutually harmful.5
Pressures for protection are also dampened by a world economy that is much more
interdependent and integrated than in the 1930s.6 Leading producers have become so international in
their production operations and supply chains that they have developed a vested interest in resisting
protectionism.7 Many industries that have faced import competition in the past such as
protection to get the world back to anywhere near the conditions of the 1930s, although a major
increase in tariffs (e.g. a doubling) would be disruptive even if it left tariffs well below the 1930s
levels. Scorecard of Protective Measures To Date Empirical support exists for the view that existing
legal, economic, and political firewalls are restraining todays protectionist pressures . Most importantly,
Pascal Lamy, the WTOs Director General, reported in January 2009 that most WTO members
have successfully kept domestic protectionist pressures under control with only limited
evidence of increases in trade restricting or trade distorting measures taken during the last six
months of 2008. This assessment was based on the first report of the WTO secretariat on the
trade effects of the global economic crisis. The report found only limited evidence of an
increase in tariffs, non-tariff barriers or trade-remedy actions by member countries, but noted that
the most significant actions taken in response to the global crisis have involved financial
support of one kind or another to banks and other financial institutions and to certain industries,
notably the automobile industry.11 The WTO report notes tariff increases on selected products
being implemented by India, Russia, Ecuador, and Ukraine. Countries adopting non-tariff
measures include Indonesia (port of entry barriers) and Argentina (import licensing
requirements). Argentina was cited for measures that attempt to boost exports of selected
products. But the report indicates that there has been no dramatic increase in antidumping
investigations in the second half of 2008 compared to first half of 2008, but raised the possibility
of increased trade remedy actions in 2009.12 The World Bank, which has also been monitoring
trade restrictions proposed and adopted since the beginning of the financial crisis, reached a
conclusion similar to that of the WTO. Its initial report determined that there have been 47 trade
restrictive measures imposed since the financial crisis began last summer, including 17 from G20 countries, but that these measures have probably had only marginal effects on trade flows to
date. In addition to the measures cited by the WTO, the World Bank report cited Chinas import
ban on various food products from the EU, and export subsidies provided by the EU, China, and
India. Contrary to the WTO report, the World Bank report determined that the number of
antidumping cases (both investigations initiated and imposition of duties) surged in 2008.13
provocations are actions taken to reduce existing trade barriers. In an effort to "reduce business operating costs, attract and retain foreign
investment, raise business productivity, and provide consumers a greater variety and better quality of goods and services at competitive prices,"
the Mexican government initiated a plan in January to unilaterally reduce tariffs on about 70 percent of the items on its tariff schedule. Those
8,000 items, comprising 20 different industrial sectors, accounted for about half of all Mexican import value in 2007. When the final phase of the
plan is implemented on January 1, 2013, the average industrial tariff rate in Mexico will have fallen from 10.4 percent to 4.3 percent.13 And
Mexico is not alone. In February, the Brazilian government suspended tariffs entirely on some capital goods imports and reduced to 2 percent
duties on a wide variety of machinery and other capital equipment, and on communications and information technology products.14 That
decision came on the heels of late-January decision in Brazil to scrap plans for an import licensing program that would have affected 60 percent
of the county's imports.15 Meanwhile, on February 27, a new free trade agreement was signed between Australia, New Zealand, and the 10
member countries of the Association of Southeast Asian Nations to reduce and ultimately eliminate tariffs on 96 percent of all goods by 2020.
While the media and members of the trade policy community fixate on how various protectionist
measures around the world might foreshadow a plunge into the abyss , there is plenty of evidence that
governments remain interested in removing barriers to trade. Despite the occasional temptation to indulge
discredited policies, there is a growing body of institutional knowledge that when people are free to
engage in commerce with one another as they choose, regardless of the nationality or location of the other parties, they can
leverage that freedom to accomplish economic outcomes far more impressive than when governments
attempt to limit choices through policy constraints.
Timeframe is decades
IINS 10, India Infoline News Service, Large-scale trade protectionism unlikely, June 30,
http://www.indiainfoline.com/Markets/News/Large-scale-trade-protectionismunlikely/4872197176
The world economy has changed structurally in the past few decades, making any serious implementation
of protectionist measures almost impossible. Developed countries are more dependent on imports of
manufactured goods and services than they have ever been. Most developed countries have oriented
their domestic production capacities towards high-end products. Their domestic capacities for
manufacturing low-end products are modest at best, so it will not be easy for them to launch a fullscale protectionist war. Setting up large production capacities to replace imports would take years if not
decades. Besides, raising import tariffs across-the-board will certainly raise prices for domestic
consumers manifold.
no impact - trade
War destroys trade
Reuven Glick and, Economic Research Department at Federal Reserve Bank of San Francisco,
Alan M. Taylor 5, econ at Cal-Davis, collateral damage: trade disruption and the economic
impact of war, July, http://www.econ.ucdavis.edu/faculty/amtaylor/papers/w11565.pdf
In this paper we examine some major indirect costs of war over the period 18701997 that have
never previously been examined, namely the effect of belligerent conflict on the volume of
international trade and consequently on per capita incomes and economic welfare. Using
econometric methods we find a very strong impact of war on trade volumes. Moreover these effects
have two important characteristics. First, they are persistent: even after conflicts end, trade does not
resume its pre-war level for many years, exacerbating total costs. Second, they have a multilateral
dimension: unlike the direct costs of war, which largely affect only the belligerents, commercial
losses affect neutral parties as well, meaning that wars generate a large negative externality via trade
destruction. We use these results to make general equilibrium comparative statics estimates of the
impact of World Wars I and II on global trade and income. Our paper is part of the renaissance of
research activity on the applied economics of international trade. A growing theoretical and
empirical literature relates bilateral trade flows to measures of joint economic activity and costs
of trade. These so-called gravity models have been utilized as benchmarks from which to assess
the trade impact of economic disturbances and policy regimes, such as exchange rate variability
(e.g., Thursby and Thursby 1987), preferential trade arrangements (e.g., Frankel, Stein, and Wei
1996), and currency unions (e.g., Rose 2000).1 On theoretical grounds, wars and other forms of
militarized conflict should affect trade among adversaries. Military conflict between countries is
often accompanied by the imposition of partial or total trade embargoes on the exchange of goods.
Conflict may also reduce trade flows by raising the costs to private agents of engaging in international
business. However, the relation of aggregate trade to political disturbances and conflict has not
received much attention among economists. Among the few extant studies, Blomberg and Hess
(2004) analyze the impact on trade of various forms of violence, including war and terrorism,
while Martin, Mayer, and Thoenig (forthcoming) estimate the effects of military conflicts on
trade. But these analyses focus only on the latter half of the twentieth century; our data span a
much longer period including the two great wars of the twentieth century.2
and a reserve currency, and by acting as the global economy's banker and lender of last resort).
Without a dominant power to perform these tasks, economic interdependence does not happen.
Indeed, free trade and interdependence have occurred in the modern international system only
during the hegemonies of Victorian Britain and postwar America. International economic
interdependence generally occurs when states feel secure, when they do not have to worry that others will
transform their economic gains from trade into military advantages. Conversely, when states are
concerned about their security, they are less likely to engage in free trade. When security is at issue,
states are always measuring themselves in comparison with their actual, or potential, rivals.
When states feel secure, they focus on the overall gains to global wealth that flow from trade . Under
peaceful international conditions, the distribution of this increased wealth is not a matter of high
politics: so long as all states are getting wealthier, trade is looked upon as a good thing. When security
is an issue, however, states become intensely concerned about how the gains from trade are being
distributed. When security concerns are paramount, the key question no longer is whether
everyone is gaining something but rather who is gaining the most. Because economic power is
the cornerstone of military strength, when security is an issue states want their economies to be
more vigorous and to grow faster than those of their rivals. Also, when war is regarded as a real
possibility, states deliberately attempt to reduce their dependence on imported products and raw materials
in order to minimize their vulnerability to economic coercion by others. This also impairs economic
interdependence. The bottom line here is this: When security in the international system is plentiful,
trade flourishes and, so long as they are getting richer themselves, states are untroubled by the fact
that others also are getting wealthier. When security in the international system is scarce , however,
trade diminishes; states seek to maximize their power (economic and military) over their rivals,
and hence attempt to ensure they become richer than their rivals.
ill-afford.25 There are two other reasons to doubt the claim that economic interdependence
makes great-power war unlikely. States usually go to war against a single rival, and they aim to win a
quick and decisive victory. Also, they invariably seek to discourage other states from joining with the
other side in the fight. But a war against one or even two opponents is unlikely to do much damage to a
state's economy, because typically only a tiny percentage of a state's wealth is tied up in economic
intercourse with any other state. It is even possible, as discussed in Chapter 5, that conquest will
produce significant economic benefits. Finally, an important historical case contradicts this perspective .
As noted above, there was probably about as much economic interdependence in Europe between 1900
and 1914 as there is today. Those were also prosperous years for the European great powers. Yet World
War I broke out in 1914. Thus a highly interdependent world economy does not make great-power war
more or less likely. Great powers must be forever vigilant and never subordinate survival to any other
goal, including prosperity.
Does globalization pacify international relations? The liberal view in political science argues that increasing trade flows and
the spread of free markets and democracy should limit the incentive to use military force in interstate relations. This vision, which can partly be
traced back to Kants Essay on Perpetual Peace (1795), has been very influential: The main objective of the European trade integration process
was to prevent the killing and destruction of the two World Wars from ever happening again.1 Figure 1 suggests2 however, that during the
18702001 period, the correlation between trade openness and military conflicts is not a clear cut one. The
first era of globalization, at the end of the 19th century, was a period of rising trade openness and multiple military
conflicts, culminating with World War I. Then, the interwar period was characterized by a simultaneous
collapse of world trade and conflicts. After World War II, world trade increased rapidly, while the number of
conflicts decreased (although the risk of a global conflict was obviously high). There is no clear evidence that
the 1990s, during which trade flows increased dramatically, was a period of lower prevalence of military
conflicts, even taking into account the increase in the number of sovereign states.