Bridging the Pacific
Fred Bergsten, Gary Clyde Hufbauer, Sean Miner
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW, Washington, DC 20036
9780881326918, $21.95, 278pp, www.amazon.com
Synopsis: The terrain of the world trading system is shifting as countries in Asia, Europe, and North America negotiate new trade agreements. However, none of these talks include both China and the United States, the two biggest economies in the world. "Bridging the Pacific: Toward Free Trade and Investment Between China and the United States" is a pathbreaking study in which C. Fred Bergsten, Gary Clyde Hufbauer, and Sean Miner argue that China and the United States would benefit substantially from a bilateral free trade and investment accord. In the process, they contend, each country would also achieve progress in addressing its internal economic challenges, such as the low saving rate in the United States. Achieving greater trade and investment integration could be accomplished with one comprehensive effort or through step-by-step negotiations over key issues. "Bridging the Pacific: Toward Free Trade and Investment Between China and the United States" calls upon the United States to seek liberalization of China s services sector as vital to securing an agreement, and explains that such contentious matters as cyber espionage and currency manipulation be handled through parallel negotiations rather than in the agreement itself. "Bridging the...