US agreement with 12 countries to stop China
The United States has signed economic agreements with 12 countries to counter China's dominance in the Pacific. The 13 countries, including the United States, will work together under the Indo-Pacific Economic Framework (IPEF).
Trade Desk
Read in 3 minutes
The alliance, founded by the Biden government, controls 40 percent of the world's GDP. The United States will work with economically powerful countries such as Australia, India, Japan, South Korea and New Zealand.
During a visit to Tokyo on Monday (May 23), US President Joe Biden said, "The United States has always been sensitive to the Pacific. We will work together to bring prosperity to this region.
Earlier, the Donald Trump and Obama administrations took the initiative to form such an alliance in Asia. However, the new framework did not explicitly address the issue of tariffs.
However, in a joint statement, the alliance members said, "The main objective of this alliance is to create an environment of resilience, stability, inclusion, fairness and healthy competition in the economy." Through this alliance, we will continue to work for mutual cooperation, economic stability, development and the establishment of peace.
However, both Democrats and Republicans have questioned the deal in Congress. Because the agreement does not say anything about duty free trade or low tariffs. Senators fear the alliance will fall short of its original purpose if there is no clear discussion of trade and supply chains.
Asked if Congress would ratify the Biden government's agreement, Catherine Taye, the country's trade representative, said: "We are not sure at this time. Let's see how far the discussion goes. '
Asked how much of an impact such an alliance without China could have on Asia and the United States itself, Jack Sullivan, an adviser to the US Security Council, hinted that China could join the alliance if it wanted to.
Read more: Elon Musk's eyes are now on Coca-Cola!
I want to make it clear that anyone who agrees to the terms and conditions of the alliance will be able to join any alliance, Biden said.
However, no one has yet called on China to formally join the alliance. But if China does not join the alliance, then many countries will not want to join the alliance except China, it is easily conceivable.
In this regard, the Prime Minister of Japan Fumio Kishida said, "If we want to reach a goal, the United States and Asian countries have no choice but to negotiate together. If everyone can sit together, it is possible to benefit from the alliance.
China, meanwhile, has been reluctant to bow to the United States in the Pacific since the beginning. On Sunday (May 22), Chinese Foreign Minister Wang Yi said, "The game that the United States has been playing in the Pacific is long gone."
Read more: Cannes women protest half-naked against rape
"The main purpose of this so-called alliance is to destroy the peace, to create divisions and to provoke confrontation," he said.
The two major Asian powers in this newly formed alliance are India and Japan. Biden is scheduled to meet Indian Prime Minister Narendra Modi on Tuesday (May 24). It is expected that this issue of the alliance will be discussed seriously in the bilateral talks.
Meanwhile, despite pressure from senators, the Biden government did not call on Taiwan to join the alliance. Although 50 senators voted in Congress for Taiwan to join the alliance, the United States does not want to upset China. Because the United States will form an alliance with Taiwan to openly oppose China.
Source: Bloomberg
No comments