This article analyzes the political challenges and economic opportunities that exist in the medium and long term to expand and build bridges in the Pacific Region in the face of US protectionism.
It defines Trump’s second presidency as explained by political realism and economic mercantilism, as its theoretical and practical foundations. Instead of strengthening international cooperation and free trade, Trump focuses on leading by strength and eliminating trade deficits vis-á-vis the rest of the world. From championing free markets since the end of the Second World War, under Donald Trump the United States has become the most protectionist nation nowadays.
To respond to US tariffs, the world should continue its integration process without the United States by diversifying and expanding markets. Integration and interdependence are necessary conditions for a peaceful and prosperous world. Thus, cooperation needs to continue in support of a more integrated economic space in the Pacific Region. Strengthening ties and seeking convergence must be encouraged across different economic blocs, such as the Pacific Alliance, the Comprehensive and Progressive Transpacific Partnership (CPTPP), the Association of Southeast Asian Nations and the Regional Comprehensive Economic Partnership. An agreement between CPTPP and the European Union should be a low-hanging fruit for economic integration. Integrating these blocs with the United States, México, and Canada Agreement (USMCA) is out of the question in the foreseeable future while Mexico and Canada struggle to keep the USMCA afloat.
The article proposes integration in the Pacific Region as a response to US protectionism. I analyze difficulties in the process and propose solutions to the current situation.
