Staff Reports
President Joe Biden’s ambitious plan to implement a “worker-centered” global trade strategy has hit a major snag, as key Senate Democrats have voiced strong opposition, effectively crippling the agenda. The president’s vision to prioritize American workers in trade deals has failed to gain traction, with vulnerable Democrats fearing that the proposed measures could cost them votes in the upcoming 2024 election.
Biden's economic agenda dealt an embarrassing blow by Senate Democrats https://t.co/fbtT02MV7b https://t.co/fbtT02MV7b
— Washington Examiner (@dcexaminer) January 2, 2024
The latest setback occurred during the Asia-Pacific Economic Cooperation meetings in San Francisco, where Biden intended to unveil a trade initiative involving 13 Indo-Pacific nations. The initiative aimed to elevate labor and environmental standards, departing from previous deals that incentivized outsourcing at the expense of lower standards.
However, Biden’s team ultimately withdrew the trade component from the discussions, bowing to pressure from Democrats such as Sen. Sherrod Brown and Sen. Tammy Baldwin, who expressed unease over the potential negative impact on workers. Despite the president’s assurances that the trade initiative would prevent job outsourcing, Democrats remained skeptical and adamant in their opposition.
The collapse of negotiations at the APEC summit further fueled Democrats’ concerns, leading to the conclusion that the trade portion of the Indo-Pacific deal was essentially dead. It became evident that some trading partners were reluctant to adhere to the U.S.’s proposed labor and environmental standards without receiving reciprocal benefits, resulting in an impasse.
The discontent among Democrats extended to Sen. Ron Wyden, who criticized the lack of proper consultation and decried what he deemed as flawed trade proposals. Such staunch opposition from within his own party dealt a severe blow to President Biden’s efforts to shape a trade agenda that balances international interests with domestic priorities.
Furthermore, the president faced additional hurdles in discussions with the European Union regarding tariffs imposed during the previous administration, as well as in his pursuit of a comprehensive trade pact with Latin American nations. The challenges encountered by Biden’s team have raised questions about the feasibility of realizing the administration’s global trade ambitions.
Despite the setbacks, U.S. Trade Representative Katherine Tai remains optimistic, emphasizing the progress made in securing agreements related to supply chains, anti-corruption measures, and clean energy initiatives with Asia-Pacific nations. Despite the adversity, the administration maintains its commitment to advancing President Biden’s global trade agenda.
