The struggle for free trade

Publication Date: January 1999

Publisher: East-West Center

Author(s): Michael J. Delaney

Research Area: Trade

Type: Report

Coverage: United States Asia

Abstract:

The United States, leader of the free trade movement since World War II, has never faced higher stakes in the global arena. Asia's economic crisis is pummeling U.S. exports to the region. The 1998 overall U.S. trade deficit with the region was $250 billion, the highest ever recorded, and 1999 promises to be worse. As the deficit balloons, support for free trade dwindles among an already wary American public. In Asia, moves to restrict international commerce confirm fears that the financial crisis may generate a trade crisis. President Clinton, trying to head off global protectionism, is again asking for congressional authority to negotiate a new trade round. Advancing the free trade agenda will be a challenge, but Asian financial woes present the best opportunity in 50 years to push for real reform. A bias against imports has been a key component of Asia's successful growth strategy. The economic crisis called that approach into question. But the U.S. administration will have to take a new tack in persuading Congress, the American public, and its trading partners of the enormous benefits of unfettered international commerce.