The Biden administration made a significant change in its trade policy in the Indo-Pacific region. There were concerns about returning to a time where trade meant a race to the bottom, especially for workers. As a result, Biden paused the trade talks in the Indo-Pacific region, which surprised other nations involved in the talks. The administration has also faced setbacks in talks with the European Union and Latin American countries.
The administration aimed to focus on improving labor and environmental standards in other nations instead of traditional trade deals. However, the recent collapse of the deal has raised doubts about the administration’s ability to revamp the global economy. Biden’s team insists that its trade agenda isn’t dead, but allies concede it could be a fatal blow for the president’s global economic agenda.
The administration’s approach had immediate benefits in cutting out Congress from the negotiations. However, the collapse of the deal has left trading partners less optimistic about completing it in 2024. Other countries objecting to new labor and environmental standards without getting more in return from the United States led to the deal’s failure.
Despite the collapse of the trade deal, the administration has finalized voluntary agreements on other issues and announced a new infrastructure partnership in the Asia-Pacific. However, the setbacks in trade negotiations with different regions have raised doubts about the administration’s broader global economic agenda.
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