Biden opens Indo-Pacific trade deal, warns of inflation "will be transported"

Tokyo – President Biden signed a new trade agreement with 12 Indo-Pacific countries on Monday to strengthen their economies. inflation It will be “carried” before they feel relieved. President says he doesn’t think a recession is inevitable in the US

Former Vice President Joe Biden acknowledged that the US economy has “problems” at a press conference after his meeting with Japanese Prime Minister Fumio Kishida, but said it was “less important than other countries.”

He added: “It will be a transport. This will take time.” When asked, he rejected the idea that a recession in the United States was inevitable.

His remarks came just before former Vice President Biden launched the Indo-Pacific economic system. His administration said the trade deal was designed to signal America’s commitment to the sphere of a competitive economy and to address the need for commerce stability after the chaos caused by the epidemic and Russia’s invasion of Russia. Ukraine.

The countries to which the United States has signed the treaty are Australia, Brunei, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam. Together with the United States, it accounts for 40% of global GDP.

The two countries said in a joint statement that the agreement would help “prepare our economy for the future” in the aftermath of the epidemic and the Ukraine war.

“The countries represented here today and those who will join this framework in the future are signing to work towards an economic vision for all,” Biden said in a speech. “Vision for a free, open, connected, prosperous, safe and resilient Indo-Pacific. Where economic growth is sustainable and inclusive.”

The inauguration ceremony was attended by Indian Prime Minister Narendra Modi along with former Vice President Biden and Prime Minister Kishida, and representatives of each country appeared on video. Prime Minister Modi visited Tokyo on Tuesday to attend the Quad meeting, a four-nation security group that includes the United States, Japan and Australia.

From left, Japanese Prime Minister Fumio Kishida, U.S. President Joe Biden and Indian Prime Minister Narendra Modi attend the Indo-Pacific Economic System for Prosperity held at the Izumi Garden Gallery in Tokyo on May 23, 2022.

SAUL LOEB/AFP via Getty Images

The White House said the framework will help the US and Asian economies work more closely on issues including supply chain, digital trade, clean energy, worker protection and anti-corruption efforts. The details still have to be negotiated between member countries, so it’s hard for the administration to say how the administration will deliver on its promise that the agreement will support American workers and businesses while meeting global needs.

Critics say the framework has many loopholes. It does not incentivize prospective partners by lowering tariffs or giving signers more access to the US market. These limitations make the US framework not an attractive alternative to the Trans-Pacific Partnership (TTP), which was pursued without the US after former President Donald Trump withdrew. China, the region’s largest trading partner, is also seeking to join the TPP.

Matthew Goodman, former director of international economics at the National Security Council (NSC), said: “Many partners will look at that list and say, ‘It’s a good list of issues. I’m happy to be involved.'” during the Barack Obama administration. But he said they might ask, “What tangible benefits can I get from participating in this framework?”

Prime Minister Kishida hosted an official state welcome ceremony for former Prime Minister Biden at Akasaka Palace, including a white-clad military honor guard and band in the front square. Looking around the assembled troops, former Vice President Biden placed his hand on his heart when passing the American flag and bowed his head slightly as he passed the Japanese occupation.

The Japanese prime minister took office last fall and is working to strengthen ties with the United States and forge a personal relationship with former Vice President Joe Biden. The two leaders ended the day with dinner at Kochuan, Tokyo’s iconic restaurant located in a Japanese garden.

Japanese Prime Minister Fumio Kishida and his wife Yuko Kishida welcome President Biden as they arrive for dinner at Gochuan, a traditional restaurant in Tokyo, on May 23, 2022.


Prime Minister Kishida said at the meeting that he was “very pleased” to welcome former Vice President Biden to Asia on his first trip to Asia. Together with former Vice President Biden, he drew a hard line over Russia’s invasion of Ukraine, saying it “undermines the foundation of world order.”

Former Vice President Joe Biden, who is visiting South Korea and Japan for five days and five nights, expressed his gratitude for “Japan’s strong leadership”, calling the US-Japan alliance “a cornerstone of Indo-Pacific peace and prosperity.” against Russia

Prime Minister Kishida welcomed the new Biden trade deal, but said he still hopes the president will reconsider the US position and return to the trans-Pacific deal from which Trump has pulled out.

“I think it is desirable for the United States to return to the TPP,” he said.

The new pact comes at the moment when the administration thinks it has a competitive edge with Beijing. Bloomberg Economics released a report last week that forecasts GDP growth in the US at around 2.8% in 2022 and 2% in China. The recession shattered assumptions that China would automatically overtake the United States as the world’s largest economy.

“The fact that the United States will grow faster than China this year for the first time since 1976 is a striking example of how countries in the region should view issues of trends and trajectories,” the White House Department of National Security said. Advisor Jake Sullivan.

The two leaders also met with a Japanese family abducted to North Korea decades ago. The White House said former Vice President Joe Biden “expressed his deepest condolences for their suffering and urged North Korea to correct this historical error and provide a full account of the 12 missing Japanese nationals.”

The White House evaluated the launch of the Indo-Pacific Economic Framework, also known as the IPEF, as one of the greatest moments of Biden’s tour of Asia and his continued efforts to strengthen relations with his Pacific allies. Throughout this process, administration officials have kept a close eye on China’s growing economic and military power in the region.

In September, the United States announced a new partnership with Australia and the United Kingdom, AUKUS, to target and deepen security, diplomatic and defense cooperation in the Asia-Pacific region.

The President of the United States also paid great attention to the unofficial alliance known as the Quad, formed during the response to the 2004 Indian Ocean tsunami that claimed the lives of approximately 230,000 people. Former Vice President Biden and fellow leaders of the alliance are set to gather in Tokyo on Tuesday for a second face-to-face meeting in less than a year.

And earlier this month, former Vice President Biden gathered representatives of the Association of Southeast Asian Nations (ASEAN) in Washington for a summit.

Taiwan, which wanted membership in the IPEF framework, is not included in the government to be included. The participation of Taiwan’s autonomous island, which China claims to be its territory, would have upset Beijing.

Sullivan said the United States wants to deepen its economic partnership with Taiwan, including one-on-one on high-tech issues and semiconductor supply.

Biden too Severe warning to China over Taiwan issue, said the US would respond militarily if China invades the autonomous provinces. “It’s what we promised,” Biden said.

The United States recognizes Beijing as a single Chinese government and has no diplomatic relations with Taiwan. However, it maintains unofficial contacts with Taiwan, including a de facto embassy in the capital, Taipei, and supplies munitions to the island for defense.

Former Vice President Biden’s remarks provoked a sharp reaction from China, which claims Taiwan is a rogue province.

A White House official said Biden’s comments did not reflect a change in policy.

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