The White House touted a “breakthrough” and steps forward on key trade deals during President Obama’s stay in Asia this week, but the most prized, consequential agreements the U.S. is seeking have yet to be finalized.
Some analysts say that Mr. Obama’s trip broadly can be characterized as a success, with the president having seemingly breathed new life into the U.S.-China economic relationship, temporarily removed barriers to a major World Trade Organization deal and taken other steps to bolster trade.
Still, it may be too soon to celebrate.
“There are a lot of deadlines missed and a lot of countries that have last-minute hang-ups” on trade deals, said Gary Clyde Hufbauer, a senior fellow at the Peterson Institute for International Economics and a former deputy assistant secretary for international trade and investment policy at the U.S. Treasury.
Thursday brought the latest incremental step forward, as the U.S. and India agreed to end a dispute over food security and subsidies, potentially clearing the way for a major new multilateral trade deal.
Under the agreement, India can continue with what critics say are disproportionately high levels of government support to food producers.
World Trade Organization members have taken issue with that policy, saying it distorts market forces and global trade by encouraging overproduction.
But with the issue temporarily solved — the Obama administration says it still is looking for a “permanent solution” — the WTO can resume work on its trade facilitation agreement, which would be the largest deal in the organization’s two-decade history.
“On the basis of this breakthrough with India, we now look forward to working with all WTO members to reach a consensus,” said U.S. Trade Representative Michael Froman.
Other significant deals have been moved closer to the finish line, though much work remains.
Mr. Froman said the finalization of the Trans-Pacific Partnership has been brought “clearly into sight.” The trade deal would include the U.S. and 16 Pacific Rim nations that account for more than one-third of all global trade.
The agreement would be a game changer, analysts say, though it remains to be seen when and if it comes to fruition. The White House initially had hoped to finalize the deal last year, but negotiations continue to move slower than expected.
Mr. Obama and his Chinese counterpart, President Xi Jinping, also praised what administration officials describe as a “breakthrough” on the long-awaited Information Technology Agreement.
The deal would remove tariffs on high-tech products moving between the U.S. and China. But those negotiations too have yet to reach the finish line.
In a press conference with Mr. Xi earlier this week, the president said the breakthrough merely will help the two nations begin to wrap up the deal.
“We reached an understanding that will allow us to work with other nations to conclude the Information Technology Agreement, which will help us boost trade in the computer and IT products that power the 21st century economy,” he said.
The president was able to conclude other deals before leaving China. The two nations agreed to extend visa validity for each other’s citizens, extending the life of tourist, business and student visas.
The U.S. and China also reached a landmark climate change deal. Mr. Obama pledged that the U.S. will reduce its carbon emissions by at least 26 percent by 2025, while China agreed for the first time to begin reducing its emissions by no later than 2030.
Because of those agreements and other bits of progress, Mr. Hufbauer said it’s fair to say the president’s trip was successful if the goal was to bolster international trade and begin building a better relationship with China.
“He takes all these trips that don’t amount to anything. This one actually amounted to something,” he said.
• Ben Wolfgang can be reached at bwolfgang@washingtontimes.com.
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