(By Bob Blandeburgo) When U.S. President Barack Obama this week makes his first visit to Asia as the nation's chief executive, he will have no shortage of issues to address. However, there are three key subjects that he will pay particular attention to.
- China's currency, the yuan, which Beijing keeps undervalued to boost exports.
- The large trade imbalance between China and the United States.
- And a pending free trade agreement (FTA) with South Korea.
Analysts believe President Obama will push to ratify a free trade deal with South Korea that was signed in 2007 but has failed to pass legislatures in both countries. Many also hope he will pursue other agreements like it.
"We are standing on the sidelines while Asian nations clinch new trade deals," said Thomas Donohue, president and chief executive officer at the U.S. Chamber of Commerce. "We'll pay the price if this continues. It's time to see action from Washington."
There are 168 free trade agreements currently in place in Asia, up from just 22 in 1980, according to the U.S. Trade Representative. Eighteen more have been completed but not yet implemented and 70 more are being negotiated. However, the United States has only two FTAs with Asia-Pacific countries: Singapore and Australia.
Former President George W. Bush pledged U.S. participation in the Trans-Pacific Strategic Economic Partnership Agreement, also known as "P4," which includes Singapore, Chile, New Zealand and Brunei. In addition to its FTA with Singapore, the United States has an agreement with Chile, but would need deals with New Zealand and Brunei to become a full member of the pact.
So far, the White House has stalled on P4 negotiations as it reviews the U.S. trade agenda. U.S. Trade Representative Ron Kirk said the talks are "the most practical way to be engaged" with the region, but declined to say when or even if the United States would resume negotiations over the agreement.
When President Obama stops in Singapore this weekend, he will participate in the Annual Economic Cooperation summit, where he'll be pressed on the United States' trade stance.
