ASEAN SUMMIT BACK ON THE CALENDAR: The White House plans to host heads of state from the 10 members of the Association of Southeast Asian Nations next month, as President Joe Biden aims to prove his administration's pursuit of deeper security and economic ties in the Indo-Pacific region will not be sidelined by the Russia-Ukraine conflict and other world events. The so-called special summit will take place May 12 and 13, White House press secretary Jen Psaki said in a statement. She said the Biden administration is a "strong, reliable partner" in the region, while also nodding to the administration's strategic plan in calling for an "Indo-Pacific that is free and open, secure, connected, and resilient." The gathering was originally slated to take place in late March, but had to be pulled from the calendar amid a scheduling snafu after some ASEAN leaders said they would be unable to attend. The White House said it would find a new date for the event, and trade watchers told Morning Trade that mid-May seemed likely. Juggling the globe: Simply pulling off the summit would be seen as a win for the administration. Biden outlined plans last fall to increase the time and money that the U.S. invests in Southeast Asia, but since then much of the administration's foreign policy attention has been consumed by the ongoing war in Ukraine. "The United States has in the past made clear its determination to focus on the Indo-Pacific or the Asia Pacific only to be detoured or to focus elsewhere on other pressing challenges," Kurt Campbell, coordinator for Indo-Pacific affairs on the National Security Council, said earlier this month. The Biden administration doesn't want to repeat the past, he said. "For now, that requires us to be deeply engaged both in Europe and in the Indo-Pacific at the same time." It's a sensitivity that the business community has clearly picked up on. Lobbyists from a broad swatch of industries, including agriculture and apparel, have been pressing the Biden administration to increase market access for U.S. exports and reduce tariffs as it seeks to grow its influence in Southeast Asia as a counterweight to China. Over the weekend, the Chamber of Commerce's international affairs head, Myron Brilliant, praised the administration for still going forward with the summit. "Doing so at this time demonstrates the seriousness of the American commitment to Southeast Asia," Brilliant said in a statement. What about the Indo-Pacific Economic Framework? The White House has not outlined its agenda for the special summit. But there's already intense speculation about whether Biden will use the event to launch formal negotiations for his economic framework for the region. A Commerce Department official previously said that was under consideration. Whether Biden makes it a focus will likely hinge on whether trade envoys from Commerce and the Office of the U.S. Trade Representative have convinced ASEAN countries to join the talks. Those agencies are currently hustling to get nations to come to the table, and some are skeptical that countries like Indonesia, Vietnam or Thailand will have enough incentive to do so without the promise of more access to the U.S. market. Meanwhile, South Korea is moving forward with plans to join another Asian trade agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Yonhap News Agency reports . That's the trade pact that former President Barack Obama helped to broker — and that former President Donald Trump later abandoned, amid bipartisan fears that it would harm U.S. workers and producers. South Korea's advancing application means another key U.S. trading partner will likely join the CPTPP, which the Biden administration has said repeatedly it cannot accept in its current form. The news is likely to elevate concerns from lawmakers and trade observers who worry the U.S. is watching from the outside, as more Asian economies sign on to the deal. TWO OREGONIANS' TAKES ON CHINESE SHIPMENTS: Rep. Earl Blumenauer (D-Ore.) is pushing Congress to raise the threshold for duty-free shipments arriving from overseas, arguing that the current level allows millions of packages from China to bypass customs duties. POLITICO's Doug Palmer reports this morning that getting his way will require changing the mind of another Oregon Democrat: Senate Finance Chair Ron Wyden. Congress voted in 2016 to raise the de minimis level to $800, meaning packages valued under that amount could go to consumers without paying duties. "It is a loophole that you can drive an air cargo plane through, [along with] massive shipping containers," Blumenauer said recently. "We're looking at 2 million packages a day." The issue will again be debated again as lawmakers from the House and Senate seek to reconcile differences in dueling bills that aim to make the U.S. more economically competitive with China. Some of the biggest divisions concern trade, including the proposed changes to de minimis. Both Wyden and Blumenauer have been selected for the conference committee. Wyden was a champion of the 2016 change. He told POLITICO in a statement that low de minimis thresholds help small businesses obtain inputs, but added that he's "taking a close look" at Blumenauer's proposal and indicated he shares some of his House colleague's concerns with how Chinese corporations are taking advantage of the law. "Using it to bypass tariffs for a multimillion dollar fast-fashion business or avoid any scrutiny as to the content of shipments is not what we had in mind," Wyden said. "We will be working with Representative Blumenaur in the conference process and beyond to make sure the de minimis law is doing what it is intended to do." Speaking of Oregon: Biden will travel to Portland later this week to tout the administration's infrastructure investments, one week after U.S. Trade Representative Katherine Tai was there to meet with commercial fishers and tour an Intel microchip development facility. Tai's plans to see the Port of Portland, as well as meet with the state's labor unions and exporters, were abruptly canceled. TRADE OVER TEXAS BORDER FLOWING AGAIN: Republican Texas Gov. Greg Abbott lifted his mandate that state troopers inspect trucks crossing the border from Mexico on Friday, amid mounting pressure from business groups and federal officials, who warned that making trade all but grind to a halt would lead to lost revenue and food shortages. Abbott imposed the inspections in response to the Biden administration ending a policy that turned away asylum seekers because of the Covid-19 pandemic, though Customs and Border Protection already conducts routine truck inspections. Abbott asserted Friday that he only lifted the requirement after Mexican officials agreed to enhance border security. Using cross-border trade as leverage to extract commitments from Mexico won Abbott praise from a fellow Texas Republican, Attorney General Ken Paxton. "The governor has figured out we can stop trade along the border, slow it down, and it will create pressure on Mexico and some of their governors to work out a deal to help us with border security," Paxton told Fox News on Friday. But not all in his party were thrilled. Texas Agriculture Commissioner (and longtime Abbott critic) Sid Miller disapproved of the move early on, arguing that the state-sanctioned inspections wouldn't do anything to curb immigration concerns and would lead to billions of dollars in spoiled produce and increased costs to consumers. For food producers, damage from the delays had been felt along the supply chain. For example, the Texas Tribune reports that jalapeños that were spoiled were discarded, and some producers estimate that prices will decrease by 30 percent due to aging produce. Losses to fruit and vegetable producers are estimated to be more than $240 million, per CNN.
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