American think tank advocates that "the US needs transatlantic and Indo-Pacific trade deals to counter China".
President Trump has the opportunity to consolidate landmark trade deals, thereby readjusting global trade according to America's will.
Donald Trump's hostile attitude towards global trade seems to have come to an end. It is time to restore the order of America's trade system. To succeed, Trump needs substantive and symbolic trade deals. The most important agreements lie with America's key allies: the EU, Japan, India, and the UK. These large, like-minded economies are eager to establish closer economic ties with the US.
If these trade deals are realized, they will combine with existing agreements between the US and Canada and Mexico [and possibly updated ones], forming a coordinated trade strategy to enhance America's ability to contain China.
Reaching trade deals with the EU, Japan, India, and the UK - the world's second, fourth, fifth, and sixth largest economies - will enable Trump to claim historic economic and strategic achievements. All these countries view the US as their largest export market and are willing to accept closer economic ties. Moreover, reaching a fair and comprehensive trade deal with Europe, Japan, India, and the UK would account for more than half of global GDP. Such a deal would mark a significant geopolitical victory, revitalize America's alliances, and redefine global trade rules to make them more transparent and mutually beneficial.
Luckily, the US has allies not only aligned with its values but also sharing similar economic interests. Failing to utilize this collective strength when facing a formidable opponent like China would be a strategic blunder. Collaboration between the US, Europe, Japan, India, and the UK can both curb China's mercantilism and reduce dependence on China's supply chains. The emphasis placed by the first-term Trump administration on onshore production, nearshoring, and friend-shoring has become even more critical today.
Through trade agreements with Europe, Japan, India, the UK, and its North American neighbors, the US can revitalize global economic growth and weaken adversaries like China and Russia. A second wave of trade agreements - with like-minded countries in the Indo-Pacific region, Africa, and Latin America - should follow.
Trump faces a choice: to be remembered for a misleading tariff war or to initiate a new era of reciprocal, resilient, and trustworthy trade with America's closest allies.
The path to truly making America great again is self-evident.
Source: The National Interest
Author: Kush Ahuja
Date: May 2nd
Original article: https://www.toutiao.com/article/1831067164037132/
Disclaimer: The article represents the author's personal views.