| | | | |  | | By Gavin Bade | | | With help from Steven Overly, Doug Palmer, Sarah Anne Aarup and Mark Scott
| | | — The second meeting of the U.S.-European Union Trade and Technology Council will include a litany of commitments and praise for cooperation, but no new action to combat China's economic practices. — Biden wrapped up his ASEAN Summit with a pledge to keep the region at the center of his administration's foreign policy. That includes his plans to deepen U.S. engagement on trade and investment. — And praise rolled in over the weekend for Alexis Taylor, the Oregon Department of Agriculture Director who Biden tapped on Friday to serve as undersecretary for trade and foreign agricultural affairs at USDA. It's Monday, May 16! Welcome to Weekly Trade. Got a news tip or some trade gossip? Send it our way: soverly@politico.com, gbade@politico.com and dpalmer@politico.com.
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| | | BABY STEPS IN PARIS: U.S. and EU economic officials will announce a number of commitments to deepen their economic coordination at the second meeting of the Trade and Technology Council this week in Paris. But major action to confront non-market economies like China isn't one of them — at least not yet. First things first: A nearly finalized draft statement praises EU-U.S. cooperation against Russia's war in Ukraine, including export controls against Moscow. It pledges to work together on topics ranging from artificial intelligence to digital platform rules, investment screening and 5G funding for developing countries. We've got a full curtain-raiser with the POLITICO Europe team here. No new action on China: But what we won't see, apparently, is any announcement of coordinated action to counter the industrial policies from Beijing that Washington has said unfairly support Chinese firms in markets around the world. The Biden administration has considered for months a new set of tariffs to counter China's support for prized industries like solar panels, semiconductors and batteries — likely paired with lower tariffs on consumer goods. The White House would love allies like the EU and Japan to do the same, and some trade watchers on K Street expected a joint announcement of that sort before the war in Ukraine broke out. But the start of the war coaxed Washington into pausing those plans, not wanting to provoke Beijing into assisting Moscow. And on hold is where they appear to be today — despite messaging from Washington that Beijing hasn't yet meaningfully assisted Russian forces in the field. Things to come? The joint statement says the nations will "resolve to take effective action to address trade-distortive non-market policies and practices, including through our trilateral cooperation with Japan." But it gives no specifics on what or when that action could take place, and doesn't mention China by name. A senior Biden administration official stressed such industrial policies would be a focus of the meeting, but also declined to offer more specifics. "I think it's fair to say that the non market economy policies and practices go far beyond subsidies to include government-directed, state enterprises, forced technology transfer — a broad range of industrial policies that really threaten some of the important emerging technologies that we are competitive in," the official said. "It's an area of, I would say, continuing and increasing focus in our work with the EU, as we look to really ramp up cooperation in the Indo-Pacific." Margrethe Vestager, European Commissioner for Competition, had more careful language on China during comments to reporters on Sunday. "There are things here that I think non-market economies will not like," Vestager said, without elaboration. "There are things here where those who use blanket surveillance of their citizens will not like."
| | | | A message from Save American Solar Jobs: The Biden administration's Commerce Department is threatening to implement meritless tariffs of up to 250% on solar panel components imported by American solar manufacturers for assembly in the U.S. This tariff threat is devastating the American solar industry, costing U.S. jobs, hurting domestic manufacturing, raising inflation and undermining efforts to address climate change.
President Biden: Tell Your Commerce Department to Reject Meritless and Damaging Solar Tariffs. | | | ASEAN SUMMIT EMITS MIXED SIGNALS ON TRADE: President Joe Biden concluded the U.S.-ASEAN Summit on Friday with a pledge to Southeast Asian leaders that the region will be at the core of his foreign policy in Asia — punctuating a two-day gathering meant to convince them that the U.S. is a committed partner. "The ASEAN centrality is the very heart of my administration's strategy in pursuing the future we all want to see," Biden said. "And I mean that sincerely." The vision: That includes U.S. engagement on trade and investment policy. A joint vision statement issued Friday calls for the U.S. to work with Southeast Asian countries to improve infrastructure, expand trade and investment, strengthen critical supply chains, and bolster cybersecurity and internet regulation. The statement makes no direct mention of the Indo-Pacific Economic Framework, Biden's signature economic initiative in Asia, but states that the U.S. and ASEAN "look forward to further strengthening cooperation including through relevant initiatives or frameworks of the United States or ASEAN." Tepid on trade: Over the course of the summit, however, leaders from key Southeast Asian trading partners signaled some ambivalence on the Biden administration's trade approach to the region. Malaysian Prime Minister Ismail Sabri Yaakob called for the U.S. to pursue a more active trade agenda in the region. Vietnamese Prime Minister Pham Minh Chinh said he was interested in the proposed framework, but needed more time to review the details. In an interview with POLITICO , Cambodia's Minister Delegate Kao Kim Hourn, an adviser to the prime minister, said the U.S. and Southeast Asia could "benefit tremendously" from the Indo-Pacific Economic Framework, which is expected to address key priorities like digital trade, clean energy and supply chains. But increasing exports to the U.S. is "a top priority" as well, he noted, and it is unclear how the economic framework will help countries like Cambodia to do that without market access provisions that would lower tariffs. "We have so much interest in seeing that our economic cooperation will be for mutual benefits, particularly for our people," Kao Kim Hourn said. "As long as the economic framework is inclusive, broad enough, it will be catering to the different needs or the economic interests on both sides." Tai headed to Asia: After jetting back from Paris, Tai will make a quick turnaround to fly to Bangkok to participate in the APEC trade ministers meeting on Friday and Saturday.
| | | | DON'T MISS DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | BIDEN TAPS TOP USDA TRADE ROLE: As Morning Agriculture host Meredith Lee scooped last Friday, Biden tapped Oregon Department of Agriculture Director Alexis Taylor to be the Agriculture Department's undersecretary for trade and foreign agricultural affairs. Prior to her current role, Taylor managed USDA's farm and foreign agricultural services. She is an Iraq War veteran. Praise for Taylor rolled in over the weekend. Corn growers: Brooke S. Appleton, vice president of public policy at the National Corn Growers Association, said she "[could not]think of a better person to represent the Biden administration on this issue." Appleton described Taylor as "someone with a deep understanding of agriculture, particularly as it relates to foreign markets, and she is widely respected by policymakers on both sides of the aisle." Praise from her predecessor: Ted McKinney, who served in the role under the Trump administration, gave his "enthusiastic endorsement" for Taylor's nomination. In a statement to MA, McKinney, now chief of the National Association of State Departments of Agriculture, added, "We know Director Taylor's passion for seeking market opportunities for American farmers, ranchers and food producers of all types. Her previous experience at USDA, her character and her deep understanding of how regulations across the globe matter for individuals in our communities will benefit all Americans." IT'S FISH WEEK! Under the catchy name of fish week, the World Trade Organization is trying to give a last push to conclude the fisheries subsidies negotiations ahead of the 12th Ministerial Conference coming up in mid-June. Fish, every day: "We have set aside the whole week for intensive discussions aimed at closing the remaining issues in the draft agreement that was sent to ministers in November last year, just before MC12 was to have started," said Ambassador Santiago Wills of Colombia, who chairs the talks to curtail subsidies that contribute to overfishing. Background: The U.S, EU and others have been entangled in decades-long talks at the WTO to try to reach a global deal on how to curb government funding for things like fishing boat fuel and equipment that may unintentionally encourage excessive catches of species like shrimp and anchovies, depleting the world's sea life. A U.N. target of agreeing on a deal by 2020 was long overshot, and WTO members now hope to wrap up talks by MC12.
| | | | A message from Save American Solar Jobs:   | | | | | | — The British government, like the White House, is mulling tariff relief to combat inflation, POLITICO Europe reports. — Malaysia's trade minister said the U.S. Indo-Pacific framework should be only the beginning, Reuters reports. — The Indian government assured the world it would still allow some wheat exports after announcements of a ban roiled world food markets, the Associated Press reports. — Lockdowns in Shanghai are exposing continuing frailties of global supply chains, the Financial Times reports.
| | | | A message from Save American Solar Jobs: The Biden administration's Commerce Department is threatening to implement meritless tariffs of up to 250% on solar panel components imported by American solar manufacturers for assembly in the U.S. This tariff threat is devastating the American solar industry, costing U.S. jobs, hurting domestic manufacturing, raising inflation and undermining efforts to address climate change.
There is a better solution already on the table. Congress should pass the clean energy tax credits and incentives that have been stalled since last year. These policies will drive the expansion of domestic solar panel component manufacturing and ensure we have the infrastructure needed to fight climate change and create jobs.
President Biden: Tell Your Commerce Department to Reject Meritless and Damaging Solar Tariffs. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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