Former President Donald Trump pledges to terminate a Pacific trade pact pursued by President Biden if he wins the 2024 election, citing concerns about job losses and hollowing out of U.S. manufacturing.
Trump’s Pledge to Terminate Pacific Trade Pact
Former President Donald Trump, currently leading the race for the Republican presidential nomination, declared his intention to dismantle a Pacific trade pact pushed by President Joe Biden if he were to be re-elected in 2024. Trump made this announcement during a campaign event in Iowa, where he voiced his opposition to the regional trade deal being negotiated by the Biden administration along with 13 other countries. He argued that the trade agreement would have detrimental effects on U.S. manufacturing and lead to job losses.
Stumbling Negotiations and Trump’s Opposition
Negotiations related to the trade aspects of the Indo-Pacific Economic Framework (IPEF) have faced obstacles, with countries like Vietnam and Indonesia hesitating to commit to robust labor and environmental standards. This has cast doubt on the future of the deal. Trump, who previously withdrew from the Trans-Pacific Partnership (TPP) trade deal involving many of the same nations, criticized the new pact, which he referred to as “TPP Two”, and vowed to eliminate it immediately upon assuming office.
Biden Administration’s Ambitious Trade Initiative
The Biden administration had aimed to finalize crucial sections of the IPEF trade initiative in time for the recent Asia-Pacific Economic Cooperation (APEC) meeting. Despite facing resistance and challenges, including the reluctance of certain countries to make stringent commitments, the administration has expressed determination to pursue the ambitious trade deal. However, experts and business groups believe that reaching an agreement is improbable due to election-season pressures and the opposition from some nations.