Since the 19th century, the United States has maintained a significant economic and political presence in the Asia-Pacific region, facing various historical conflicts, including the Pacific War and the Vietnam War. Today, the U.S. is embroiled in intense geopolitical competition with China. Amid these shifts, trade has remained essential to U.S. engagement in the Asia-Pacific, with American entrepreneurs historically recognizing its potential for economic growth and consumer benefits.
America’s historical trade pursuits in the region were initially solidified by treaties, like the 1833 Treaty of Amity and Commerce with Siam, and expanded significantly post-World War II. The economic stakes in the Asia-Pacific have grown further since the late 2000s, as shifts in China’s trade relationships, its neomercantilist strategies aimed at gaining political dominance, and rising protectionism within the U.S. have shaped the landscape.
Protectionism threatens U.S. economic and national security interests. A recent analysis urges the United States to adopt a strategic trade liberalization agenda that reflects current geopolitical realities. Although full trade liberalization may be unrealistic given national security concerns, promoting liberalized trade with Asia-Pacific nations can bolster U.S. economic interests and solidify its geopolitical position against China.
China’s growing influence in the region has been marked by strategic trade agreements designed to create economic dependency. This contrasts sharply with the U.S. approach, which has shifted from broad multilateral agreements to transactional, nation-by-nation negotiations accompanied by significant tariff threats—an ineffective tactic against China’s maneuvers.
To counter these challenges, the U.S. should pursue a strategic trade liberalization policy involving new bilateral trade agreements, further liberalization of existing agreements, and potential reentry into multilateral frameworks, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). By fostering free trade, the U.S. can enhance market freedom and economic ties while contrasting China’s restrictive mercantilist models.
Since the mid-20th century, U.S. trade policies have evolved significantly, characterized by phases of multilateralism, liberal protectionism, and competitive trading frameworks. These shifts were often motivated by geopolitical challenges, particularly in response to China’s policies. The ongoing U.S.-China trade tensions illustrate a crucial need to recalibrate American trade policy to ensure long-term economic growth and situational adaptability.
The economic potential of the Asia-Pacific region remains staggering, comprising roughly 60% of the global GDP. Prominent trade agreements and the increasing influence of China necessitate that U.S. policymakers carefully navigate these waters to reap economic benefits while also addressing national security implications. Developing a strategy for liberalized trade amid the reality of China’s growing geopolitical ambitions is paramount.
Moving forward, the U.S. can implement a strategic trade liberalization agenda through:
1. Further liberalizing existing bilateral trade agreements with established partners.
2. Negotiating new bilateral agreements with critical Asia-Pacific nations, fostering deeper economic ties.
3. Actively engaging in multilateral frameworks like the CPTPP to create a united front against China’s attempts to dominate trade through neomercantilist policies.
Pursuing this path could limit Chinese influence in the region while ensuring the U.S. does not cede its role as a primary trade leader. The Asia-Pacific region presents a modern economic frontier, rich with opportunities for the United States, making proactive engagement not just advantageous but essential for a prosperous future.