Larsen Calls for Kenya FTA, TPP Re-Entry, Environmental Goods Free Trade
Rep. Rick Larsen, D-Wash., one of the shrinking number of members of Congress who advocates for engaging with China rather than punishing it, recently published a white paper of his views on how to manage competition with China, how to use both offensive and defensive measures to compete with China, how to improve U.S. governance and competitiveness, and how to identify areas of cooperation.
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"If the goal of U.S. strategy is to slow China’s growth or change China’s system of government, it is doomed to failure. On education, trade, technology, security and diplomacy, decoupling the United States from China threatens American prosperity by also isolating the U.S. from the world economy," he wrote.
He is critical of the Section 301 action's effectiveness. "The Biden administration inherited the remnants of a harmful and ineffective trade war with China. While President Trump increased duties on potential partners, China reduced duties for others, further isolating the U.S.," he wrote. "Ultimately, the trade war harmed U.S. exporters, workers and consumers and undermined global confidence in the U.S. commitment to trade."
Larsen said the U.S. should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the renamed TPP that Trump pulled out of before Congress voted on the pact. "Joining CPTPP will present political and technical obstacles, though these are surmountable," he wrote.
But before that could happen, Larsen recommends passing trade promotion authority, working on sectoral multilateral trade agreements, such as in digital trade and environmental goods. Larsen would like to see free trade in green technologies.
Passing TPA is often linked by Republicans with renewing Trade Adjustment Assistance. Larsen wrote of TAA: "Strengthen and modernize Trade Adjustment Assistance. Calling the current program a fig leaf is an insult to fig leaves."
Larsen says China is trying to become the preferred partner in Africa, and he made a number of proposals on how to approach various African countries. In Kenya, he wants to arrive at a free trade agreement "to strengthen economic ties, provide market access for U.S. and Kenyan businesses and support regional integration in the East African Community."