Former US Chief Negotiator for TPP Speaks at CCG

The Center for China and Globalization and the Asia Society Policy Institute jointly held a seminar on the Prospect of Trade and Economy in Asian Pacific, featuring Former US Chief Trade Negotiator for TPP Mrs. Wendy Culter.

On behalf of CCG, President Wang Huiyao extended the warm welcome to the visiting guests. On the purpose of the seminar, he said that the beginning of the Trump’s presidency turns up a new chapter of the China-US relations. As a core component of the bilateral relations, the trade and economic cooperation is facing mounting challenges and tests.

The seminar selects TPP as the main topic because it is relevant to many new issues in the 21st century. Previously, CCG has proposed repeatedly that China consider joining TPP for it benefiting China economy and trade with neighboring countries. ASPI has also issued a report recently that suggests other TPP members continue to support the initiative even after the US withdrawal.

Cutler brought her over 30 years of diplomatic and negotiation experience to the TPP negotiation and took a position as the deputy director at the ASPI after she left the government. She summarized the main point of ASPI’s recently-released report on the integration of trade and economy in Asia Pacific – regional trade agreement is the best approach to achieving free trade, standard elevation and overall reforms. Compared to bilateral trade agreements, regional trade agreements have more influence and can ensure higher level of corporate compliance with common rules. Therefore, she advised the Trump administration to include a provision in the bilateral trade agreement to make it open to other member states.

Further on, Cutler elaborated on the four suggestions in the report: despite the fact that the United States has withdrawn from TPP, the policymakers should still uphold TPP’s high standard. America should reconsider its role in TPP and welcome other economies in the region to join. Secondly, the report suggests that RCEP members improve the standards of the mechanism by reaching an agreement of higher quality and bringing more benefit to small and medium-sized enterprises. The third suggestion, as she said, is that the countries in Asian Pacific should establish multilateral platforms focused on newly-emerging trade issues such as digital commerce, SOEs and global value chain. In addition, the report calls on policymakers to rebuild trade mechanism. The governments and multilateral economic organizations, such as G20, WTO and APEC, should spend more efforts to explain trade’s real benefit to people instead of only focusing on macroeconomic impact. More multilateral seminars and forums should be held to enhance exchange and cooperation and use the best practice to show the positive impact of trade and globalization.

Former Vice Minister of Commerce and the Chairman of CCG’s Strategic Advisory Committee Long Yongtu said in his speech that international trade has proved its significant role in economic growth and job creation. He disagreed that TTP was deliberately conceived to counter China’s power. Just like what Cutler has said years ago, TPP is not an outcome of the plot against China.

Long emphasized that it is important at the moment to improve public perception about TPP and avoid over-politicalizing it. In terms of the China-US trade relationship, Long believe that it is based on mutual interest and therefore can survive from friction or even trade war.

Other scholars that participated in the seminar also discussed the differences between TPP and RECP and the problems China and the United States have encountered in their BIT negotiations.