In One Sentence

• The U.S. and the European Union (EU) have invited stakeholders to provide input on four Trade and Technology Council (TTC) working groups. 
• Senior U.S. officials said the Asia-Pacific Economic Cooperation (APEC) is an ideal forum to advance the Biden administration’s trade agenda in the region and address global challenges.
• The G7 Trade Ministers reached an agreement on principles related to digital trade. 
• Multiple sources say the White House is seriously considering an Indo-Pacific digital trade agreement. 
• U.S. Trade Representative (USTR) Katherine Tai said her office is “asking big and consequential questions” that will guide its approach on digital trade.
• USTR Katherine Tai said the U.S. will work with allies, deploy all current tools, and consider developing new tools to address “global overcapacity from China” in the steel and aluminum sector. 
• USTR Katherine Tai plans to travel to Japan, South Korea and India to discuss the “enduring U.S. commitment to the Indo-Pacific region.”

Mark the Essentials

• European Commission Executive Vice President Margrethe Vestager lauded progress made at the TTC and said it could become “a main channel of dialogue” between the U.S. and the EU. 
• U.S. officials hope to utilize the APEC forum to promote free, fair, and open trade and investment.
• A White House advisor said that multilateral coalitions featuring like-minded countries on emerging technologies should have an open-door policy—especially with regard to non-leaders.
• Sources say the White House has increased contact with domestic stakeholders and is conducting interagency evaluation regarding the specifics of a digital trade agreement. 
• USTR Tai emphasized the need to adopt “flexible” digital trade policies and asked how the U.S. can work with allies to “protect democracies against external threats.” She also highlighted concerns on physical infrastructure, cybersecurity, and reliable semiconductor supplies. 
• USTR Tai cited an earlier U.S.-EU agreement wherein the two parties committed to address “shared challenges in the steel and aluminum sector.”

Keeping an Eye On…

• Following the initial progress made at the inaugural U.S.-EU Trade and Technology Council (TTC) meeting, the Biden administration is now turning its attention towards the Asia-Pacific. President Biden’s upcoming speech to Friday’s virtual APEC CEO Summit will be an important indicator of the administration’s regional trade approach and priorities, just as ex-President Trump’s speech was in 2017. The obvious low-hanging fruit is the announcement of the United States’ participation within a regional digital trade framework, building on the existing seven-member Digital Economy Partnership Agreement (DEPA). Digital trade agreements (DTAs) sound attractive and, in the administration’s case, give the impression that it is “doing something” on the regional trade policy front. However, the mundane reality is that DTA’s are replete with ‘best endeavour’ clauses, given that domestic rulemaking—let alone international rulemaking—in the digital sphere, be it on antitrust, data flow and data protection, platform regulation, or privacy, is young and fluid. Hard international rules are difficult to pin down in these circumstances. Arguably, China’s data governance regime is superior, too, to the United States’ own, and Beijing’s participation in the WTO e-commerce negotiations and recent application to DEPA further suggests that there is little advantage to be had for the Biden administration in this regard. If it really wishes to press its advantage on trade and investment policy vis-a-vis Beijing, it would do well to borrow a page from its recent European engagement and resolve outstanding irritants with regional trade partners and, thereafter, co-opt them in enforcing the rules of the game on ‘level playing field’ issues such as industrial subsidies and state-owned enterprises. For this to be the case though, Washington will have to engage with, not run away from, rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement. 

Expanded Reading

• Remarks of Ambassador Katherine Tai on Digital Trade at the Georgetown University Law Center Virtual Conference, Office of the United States Trade Representative, November 3
• Opening Remarks of Ambassador Katherine Tai at American Iron And Steel Institute and Steel Manufacturers Association General Meeting, Office of the United States Trade Representative, November 2
• Joint US-EU Statement on Trade in Steel and Aluminum, White House, October 31
• U.S. trade chief Katherine Tai to make first visit to Japan in mid-November, Japan Times, October 30
• Ambassador Tai to Travel to Japan, South Korea, and India, Office of the United States Trade Representative, Office of the United States Trade Representative, October 29
• G7 Trade Ministers’ Digital Trade Principles, Gov.UK, October 22