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China is benefiting from CPTPP moving on without the U.S.

Ohio State University Trade Economist Ian Sheldon says China is benefiting from the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) moving forward without the U.S.

“The U.S. has given up the ability to influence trading arrangements in the Asia-Pacific region,” he says. “And it probably means China will now be pushing the Regional Comprehensive Economic Partnership (RCEP), which involves 16 countries, many of which are in the CPTPP.”

In a study he helped co-write, Sheldon said the CPTPP would have provided a template for containing China and addressing intellectual property concerns.

“The key issue has been the way China behaves over intellectual property,” he says. “I guess the U.S. thinks that they can do a better job negotiating bilaterally with China, but why did we give up the gains that we made in the Trans Pacific Partnership in that area. “

He tells Brownfield although it would be great if the U.S. and China could come to an agreement during the 90-day trade truce, collective action on trade rules is stronger than bilateral action.  

He says the U.S. would benefit from rejoining the CPTPP.

Click here for more information on the study.

Audio: Ian Sheldon, Ohio State University