It was an exciting time to be in the region. Governments were enthusiastically signing up to a wide variety of trade agreements. For example, Laos completed accession procedures to become the 158th member of the World Trade Organization (WTO). We were in Bhutan for two workshops to support a renewed consideration of joining the WTO. We also had several training activities in Timor Leste with members of Parliament and across the government to support accession to the WTO in conjunction with plans to become part of ASEAN. Mongolia, the last WTO member to not have a free trade agreement (FTA), asked for training to complete an FTA with Japan. ASEAN itself was rapidly pursuing greater internal integration, with plans for the ASEAN Economic Community (AEC) pushed forward from 2020 to 2015. It was also working on a range of agreements called ASEAN+1s with major powers in the region including Australia, China, India, Japan, New Zealand, and South Korea. There was also a lot of activity to integrate Asia more closely to the rest of the world. The first meeting in what would become the Trans-Pacific Partnership (TPP) took place in Singapore on the sidelines of APEC. The TPP, as regular Talking Trade readers will recall, rapidly expanded and finally concluded in 2014. The European Union was actively involved in working with members of ASEAN to create an eventual bloc-to-bloc agreement, starting with a bilateral FTA with Singapore.
The “North Star” of US Trade Policy Leads Where?
Tai has made very few public appearances. Her confirmation hearings provided limited details into her thinking about how US trade policies might adjust to fit in this Administration. Vague answers make sense when trying for a smooth passage with Congress which makes it imperative to say nothing that might offend anyone. While resetting policy directions does take time, after several months on the job, at least broad outlines ought to be clearer, along with a sense of what is currently considered acceptable or intolerable about past practices. However, Tai is a master of speaking without revealing any worthwhile information at all. She deftly dodged every question posed to her during her conversations last week in the Financial Times’ Global Boardroom. Instead, she deflected pointed questions and responded mostly with “motherhood and apple pie” sorts of statements. The net result is it still remains unclear what a worker centered trade policy actually looks like. Beyond repeatedly stating that the Administration’s “North Star” remains creating a trade policy that delivers value to workers, there were no details on what that means in practice. She said that the whole of government would be laser focused on following this objective. It’s awfully difficult to have the government machinery start focusing on a particular “Star” without any guidance on what might be meant by the term, what might be problematic from past efforts, and what outcomes should be encouraged going forward. Unless Tai is much more voluble in conversations with the whole of government engaged—to one extent or another—in designing and executing US trade policy, it is highly likely that most officials are uncertain or confused about the path forward.