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US unlikely to make firm commitments on free trade at APEC summit
By Channel NewsAsia's Daniel Ryntjes | Posted: 06 November 2009 1352 hrs

 
 
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US unlikely to make firm commitments on free trade at APEC summit

WASHINGTON: The United States is unlikely to make firm commitments on free trade at the forthcoming APEC summit in Singapore.

That's according to the Center for Strategic and International Studies in Washington, which often consults closely with US officials on trade issues.

But President Obama is coming to Singapore with some of America's top cabinet officials hoping to send a positive message about American engagement.

During a briefing on the forthcoming APEC meeting Channel NewsAsia asked Senior US State Department official Kurt Tong if the Americans were coming to Singapore with concrete proposals on free trade.

He said: "I don't want you to misread anything I say as saying either one thing or another about either the pending FTAs that we have or any possible arrangements we might participate in."

The White House is busy lobbying hard for Democrats on Capitol Hill to approve a healthcare bill that will insure millions of Americans and help President Obama fulfill a campaign promise.

And that means they don't have much time to plan and negotiate on trade issues right now.

Ernie Bower, Program Director (Southeast Asia), Centre for Strategic and International Studies, said: "I think the danger would be for the rest of Asia to assume that the United States might come with a great trade package. We shouldn't have too high expectations. The White House has put healthcare first, and trade will follow. But I'm not sure it will be in time for APEC."

American businesses looking to sell their products and services to Asia would like to see action now but many powerful labour unions here, worried about losing jobs to Asia, oppose deals currently on the table like the US-Korea Free Trade agreement.

Mr Ernie Bower added: "Behind the scenes there is a very serious commitment to getting the words right. Why is trade important to our country? Why does it create jobs? Why does it create growth? And I think President Obama, one of the strongest points he has, he's a good salesman of messages to the American people. I think he can bring a positive trade message to them after he gets his healthcare plan."

And though he wouldn't elaborate on free trade plans, Senior official Kurt Tong did begin to demonstrate how the argument for deals in Asia might be made.

Mr Tong added: "The Asia Pacific region is one that is experiencing rather consistent economic growth, creating enormous opportunities for the United States. That we see it as a region that we very much want to be in."

With the inclusion of Secretary of State Hillary Clinton in the APEC meetings, along with Treasury Secretary Timothy Geithner and trade representative Ron Kirk, the administration is sending a message about the importance of Asia.

But the open question to President Obama might now be: "How much political capital are you willing to expend in making the case for free trade to the American people and to members of your own?” - CNA/vm

 

 
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