As the United States continues to recover from the recession and to create jobs, we must look beyond our borders to help power our economy. To create and sustain good jobs for the middle class, we must expand our exports, a sector in which America still ranks last among the world’s top economies. And to grow our exports, we must look to the rapidly expanding markets of the Asia-Pacific.
While we once thought of Asia as the Far East, on the West Coast, we understand our Asia-Pacific trading partners are our Near West. The United States is beginning to recognize and fully embrace our role as an Asian-Pacific nation.
By 2020, leading Asia-Pacific economies will take in $10 trillion in imported goods annually, and even more when services are included. That vast market is equivalent to two-thirds of the size of America’s entire economy in 2010 and will be driven by an increasingly urban middle class that will grow by more than 1 billion by 2020.
It is time for the United States to undertake a sustained effort to reverse a disturbing long-term trend — the decline in the United States’ overall share of Asia-Pacific trade.
From 2000 to 2010, the value of American goods exported to leading Asia-Pacific economies grew significantly, to $359 billion. But our share of regional trade did not. According to a new analysis by Third Way, the U.S. share of imports into these economies during the decade actually plummeted by 43 percent — from 14.3 percent in 2000 to 8.2 percent in 2010.
If this trend continues, America will miss a huge opportunity to use Asian growth to grow our economy. By reversing this trend, the United States could add hundreds of billions of dollars in new exports each year, supporting millions of new American jobs.
Why has America’s slice of Asia-Pacific trade been shrinking? There are a variety of causes, including the strength of trade among the region’s countries, led by China’s rapid export growth. But perhaps the biggest reason is the array of unfair and illegal barriers — from high tariffs and discriminatory standards to unfairly subsidized foreign competition — that block America’s competitive exports to the region.
For the past decade, Asia-Pacific economies have been forging a host of new trade deals that reduce or eliminate barriers to each other’s exports. In 2000, the region had four major trade arrangements. Today, there are 39, with many more on the way, including a possible deal among China, Japan and South Korea.
The United States has largely been on the outside looking in. As a result, our exporters continue to face serious impediments to trade, and Asia’s trade rules often ignore issues that are particularly important to the United States, from protection of intellectual property to labor and the environment.
Fortunately, America is beginning to get back in the race for trade deals in the Asia-Pacific and to fight for a bigger share of the region’s trade.
America’s comprehensive trade deal with South Korea is opening up that country’s trillion-dollar economy to a wide array of American manufactures, farm goods and services, and it could help recapture our historical share of that key market.
Vice President Joe Biden waits to conduct a mock swearing-in ceremony with Sen. Brian Schatz, D-Hawaii, in the Capitol's Old Senate Chamber, December 2, 2014. Schatz was sworn in to serve the remainder of his term since he was appointed to the seat after Sen. Daniel Inouye, D-Hawaii, passed away.