Re-evaluating U.S. Trade Relations with the Asia-Pacific Region

Abstract

This Task Force is focused on the complex issues of U.S. trade and investment policy with countries in the Asia-Pacific. Specifically, this report looks at historical and contemporary relations of the U.S. with China, Japan, and South Korea to recommend viable policy options to the United States Trade Representative (USTR). President Trump’s concern with U.S. trade deficits has evolved into harmful policy measures, such as the implementation of tariffs, creating lasting economic and diplomatic consequences for the U.S. in the region. These actions reflect his view that foreign trade is negatively impacting domestic jobs and industries, and therefore require protectionist policies. In the case of China, the biggest issues facing the U.S. are China’s rise economically and geopolitically, cybersecurity, intellectual property theft, and forced technology transfers. For Japan and South Korea, conflicts over tariff escalation and strains in diplomatic relations need to be addressed. Our analysis of these issues leads us to recommend policy options in six main areas.