On Friday, President Joe Biden will promote his proposal to strengthen economic ties among Western Hemisphere countries. He will welcome leaders from 11 other nations to the White House for the newly formed Americas Partnership for Economic Prosperity.

Experts suggest that the program, which was implemented in the previous year, may not lead to a significant increase in trade or present a major obstacle to China’s economic power and goals. However, it could potentially tackle other issues in the region, such as irregular migration.

During the marketing of his initiative on Thursday, Biden highlighted his belief in the importance of mutual benefit in his diplomatic approach.

During a meeting before the summit, President Biden expressed his belief that our partnership, known as the Americas Partnership for Economic Prosperity, will create more opportunities for working individuals in both of our countries.

On Thursday, Treasury Secretary Janet Yellen stated that this economic alliance could have an impact on the production of important goods like renewable energy sources, medical equipment, and semiconductors.

She stated that this is an instance of “friendshoring” – the practice of broadening supply chains by collaborating with trusted friends and allies.

Yellen emphasized the importance of the economic partnership as a means to enhance economic integration, boost regional competitiveness, attract private-sector investments, and promote inclusive and sustainable development between our countries.

Competition

The United States faces stiff competition. In recent years, China has significantly boosted investment in and economic relations with South America, making it that continent’s largest trading partner.

According to analyst Jason Marczak, senior director at the Adrienne Arsht Latin America Center of the Atlantic Council, the U.S.-led effort relies on private-sector investment and therefore cannot compete with China’s government-led strategy.

He stated to VOA that he does not anticipate the U.S. being able to compete with China in terms of financial contributions. This is because China’s economic system is not based on capitalism, and therefore their investments in the region come from state-owned enterprises and government funds that are directed by the Chinese government.

Marczak stated that the United States has the potential to use its influence effectively by carefully selecting projects and investments. These investments should prioritize areas that are crucial for the future economic development of the people in the Americas. The goal is to ensure that the benefits of these investments directly reach the individuals they were intended for.

According to economic analyst Tori Smith of the American Action Forum, the developing Indo-Pacific Economic Framework implemented by the administration does not involve any new commitments for market access.

According to her analysis of the partnership on March 2, the need for market access negotiations may be reduced since most participants have trade agreements with minimal tariff barriers. She pointed out that the U.S. already has free-trade agreements with eight out of the 11 other countries.

The collaboration is not expected to significantly boost trade between the US and the involved nations as the forum has a limited focus on trade policy,” she stated.

According to Marczak, this ongoing economic agreement may also tackle other issues within the region.

According to the speaker, investing in APEC member countries and offering long-term financial support is closely linked to migration. This is because a country that sends migrants will have fewer people leaving when the economy is thriving.

According to Shannon O’Neil of the Council on Foreign Relations, the negotiations for APEP are significantly delayed compared to those of the Indo-Pacific Economic Framework, despite being announced around the same time. However, the United States currently holds an advantage in this region.

The United States has an upper hand due to its more thorough regulations, longer track record of investment, and more equitable and valuable trade, according to her statement.

Jorge Agobian was a contributor to this report.

Source: voanews.com