CHAPTER TEN: Trade, Investment, and Finance

Using the Perspectives

Following on the heels of free-trade talks with Malaysia and South Korea, Charlene Barshefsky, a former U.S. trade representative, made a case in support of expanding U.S. trade agreements to several Asian countries. Writing in the Washington Post in March 2006, she argued that free-trade agreements (FTAs) in Asia play a vital role in America's national interest and ought to be pursued vigorously by the Bush administration.

"(FTAs) should be seen in the larger context of an Asia that is integrating at breakneck speed, with China at its productive center and the wealthier Asian nations a source of capital and technology. In the rise of Asia and China we are witnessing the most profound shift in the pattern of global trade and investment in our lifetimes. The implications for our competitive and strategic positioning in Asia merit serious and focused attention."

1.  Why does Barshefsky believe that the United States should pursue FTAs with Asian countries? Which perspective does this      argument fall under?
     

Barshefsky attributes Asia's increasing economic integration largely to the end of Cold War-inspired military and ideological conflict and the growing trends of "Asian pragmatism, normalization and, most recently, China's opening." This integration, she argues, has caused Asia (and particularly China) to gain a competitive advantage over the United States.

2.  What has caused Asia's increasing economic integration, according to Barshefsky? Which perspectives are present in this      explanation? Which do you think is dominant?
     

For Barshefsky, FTAs with South Korea and Malaysia are a good place to start, but they are not enough. She contends that the United States ought to pursue an ASEAN-wide FTA, which would include Thailand and Singapore; it also ought to strengthen economic ties to India and Japan. Why does she believe that these trade agreements are so important for America? In her words, "robust engagement with Asia is critical if we are to retain unencumbered economic access to the region and if we are to reinvigorate our central role in the Pacific, our network of relationships and American influence there. The U.S.-China relationship will itself be placed on more solid footing in a mutual theater of balanced alliances grounded among equally integrated economies."

3.  What is the primary reason that Barshefsky believes that Asian FTAs would be good for the United States? Which perspective is      she using?
     

4.  Do you support Barshefsky's reasoning? What concerns might other perspectives emphasize that are not addressed by Barshefsky?
     

Barshefsky, Charlene. 2006. "Trade Deals We Need to Close," Washington Post, March 9, 2006. http://www.washingtonpost.com/wp-dyn/content/article/2006/03/08/AR2006030801945.html