| After yet another failed attempt to forge a | | | | compromise are they willing to make, making the |
| multilateral deal on global trade issues at July's WTO | | | | other block hesitant and doubtful of the first worlds' |
| meeting, the United States was quick to take actions | | | | sincerity. |
| to protect its trade welfare. Seeing that time is a | | | | Schwab's first agenda in China is to establish wider |
| crucial factor, the US government grabbed the | | | | US-China market openness. US recognizes the great |
| immediate weeks post-July fiasco to secure trade | | | | potential of China's booming economy on making |
| stability with the whole of Asia. The US government | | | | great turns in the global trade. China's economic |
| practically used the whole month of August to forge | | | | policies can spell a big difference on how American |
| win-win deals with its Asian trade partners. Keen on | | | | and European economies will perform. Schwab's visit |
| targeting the bull's eye, negotiations with global trade | | | | is geared on establishing constructive engagement so |
| giant China is a top priority. Earlier on, a deal with | | | | China will take interests of the global trade as a prime |
| ASEAN and a vital Memorandum of Understanding | | | | consideration in its economic policies. Schwab's second |
| with the Philippine government were signed. | | | | agenda is to settle trade surplus issues that has been |
| Since compromise among collective economies | | | | upsetting the US market. |
| proves too elusive as of the moment, US sent trade | | | | Earlier on, in August 25, Schwab joined the economic |
| envoy Susan Schwab to do one-to-one talks with | | | | heads of ASEAN in signing the US-ASEAN Trade and |
| Asian economies. Schwab's first mission is to start | | | | Investment Framework Arrangement (TIFA). The |
| negotiations with China on matters of agricultural and | | | | TIFA is an accord which further solidifies the |
| manufacturing trade. Schwab is scheduled to have a | | | | steadfast trade relationship between ASEAN |
| number of talks with her Chinese counterparts, | | | | members and the US. Through FTA, direct |
| Minister of Commerce Bo Xilia and other Chinese | | | | investment from the US is expected to get even |
| global trade experts, in the hope of establishing a | | | | higher than the previous years' multi-billion amount. |
| bilateral agreement between the two economic | | | | With FTA, multilateral comprehensive dialogues will be |
| giants. Schwab's visit to China was for two vital | | | | easier to undertake and progressive results are more |
| agenda: to widen trade liberalization and the trade | | | | likely to materialize. For the side of US, the FTA is |
| surplus dispute. | | | | aspired to lead both parties in constructively engaging |
| The main glitch of the WTO talks is the failure of | | | | in measures to further deepen their agricultural and |
| first world countries and developing countries to | | | | manufacturing relations, something important for both |
| arrive at a concession on how to liberalize global | | | | parties' global trade welfare. A wider, more |
| trade. First-world countries like the US and EU | | | | productive market access is the main goal of the |
| demand that developing countries open up their | | | | FTA. |
| economic doors wider than their current latitude. | | | | Two days prior to FTA signing, August 23, Schwab |
| First-world economies want lesser barriers for | | | | signed an important Memorandum of Understanding |
| manufactured goods and drastic reforms in agriculture | | | | (MOU) with Philippine's Trade and Industry Secretary |
| sector. In turn, developing countries demand | | | | Peter Favila on strengthening their trade relationship. |
| first-world economies to cut their agricultural subsidies | | | | Intellectual property agreements, direct investments, |
| and reduce tariff rates imposed on imported goods | | | | and global trade matters are the main points of the |
| entering first world markets. The gridlock comes | | | | signed MOU. Schwab is still scheduled to visit other |
| from the question of who should take the first | | | | Asian countries like Thailand and Singapore in hopes |
| move. Both parties appear to be not having enough | | | | of securing more trade deals. Asia, being one of US's |
| willingness to take the first step. The first-world block | | | | biggest global trade partner, is a crucial market for |
| cannot even agree on themselves on how much | | | | US economy. |