| | | | |  | | By Steven Overly and Ari Hawkins | | | With help from Doug Palmer
| | | — President Joe Biden and Chinese President Xi Jinping meet face-to-face today on the sidelines of the G-20 summit in Bali, Indonesia. It's a landmark event with very mild expectations. — Meanwhile, Biden has called for stronger relations between the U.S. and Southeast Asian nations to counter the rising might of China. But that could imperil the economies' vital trade relationship with Beijing. — The U.S. Chamber of Commerce vented its frustrations with the World Trade Organization, which recently stalled-out conversations over whether to expand an IP waiver for Covid-19 vaccines. It's Monday, Nov. 14. Welcome to Morning Trade. Send us your trade news: gbade@politico.com , soverly@politico.com , ahawkins@politico.com and dpalmer@politico.com .
| | | | A message from Save American Solar Jobs: President Biden put a two-year moratorium on new solar tariffs that threatened the U.S. solar industry. His Commerce Department, however, is continuing to pursue them – possibly to implement when the moratorium expires. If not stopped, these meritless tariffs would slam the brakes on solar deployment, undermining efforts by the President and Congress to promote clean energy jobs and address climate change.
Commerce Secretary Raimondo: Please Reject Meritless and Damaging Solar Tariffs . | | | | | | BIDEN AND XI FINALLY FACE OFF: The much-anticipated meet-up between President Joe Biden and Chinese President Xi Jinping is slated to take place in the early morning hours Washington time today. It will mark the first in-person confab for the leaders of the world's two largest economies since Biden entered the Oval Office nearly two years ago. Just don't expect big breakthroughs. The White House has sought to temper expectations that the head-to-head will yield concrete outcomes, especially as both countries for months have only managed to dig in on their differences and erode much hope of reaching a common ground, POLITICO's Phelim Kine and Jonathan Lemire report . And while we know Biden plans to discuss "fair trade" during the sitdown, it remains to be seen whether the subject will occupy much of the multi-hour agenda. There are certainly plenty of grievances for each to raise — industrial subsidies, intellectual property theft, tariffs, export controls, need we go on? — but neither has shown signs of making concessions. In fact, Biden told reporters he's stepping into the meeting on stronger footing after Democrats outperformed expectations in last week's midterm elections. Plus, the president has spent the days leading up to the Xi summit seeking to bolster alliances across Asia that could ultimately undermine Beijing's influence in the region. NEW ECONOMIC SECURITY TALKS WITH JAPAN AND SOUTH KOREA : Chief among those critical allies are Japan and South Korea, whose leaders Biden gathered with on Sunday while attending the East Asia Summit in Cambodia. The trio announced yet another set of dialogues among their governments, this time focused on economic security. In a joint statement, the leaders agreed to strengthen shared supply chains, protect critical infrastructure, pursue emerging technologies, such as artificial intelligence and quantum computing, and coordinate their billion-dollar investments in semiconductor production. Those objectives overlap at least in part with the ongoing efforts to draft an Indo-Pacific Economic Framework, Biden's signature economic initiative in the region. And Japan and South Korea, who are already at the negotiating table, "concur in working together to develop a comprehensive IPEF that will deepen economic engagement on priority issues." And while the joint statement made no explicit mention of China, it wasn't really necessary. "The three countries will stand as one against economic coercion and in favor of sustainable and transparent lending practices," the leaders stated. The three clearly have one country top of mind there.
| | | | A message from Save American Solar Jobs:   | | | WHITE HOUSE COURTS ASEAN ALLIES AGAINST BEIJING: On Saturday, Biden touted the launch of a new United States-Association of Southeast Asian Nations pact in Cambodia as the administration continues mobilizing its allies in a bid to counter China's growing global influence. The president said the U.S. was committed to the spread of "peace and prosperity throughout the region" in a speech to member nations, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. "Together we will tackle the biggest issues of our time, from climate to health security to defend against significant threats to rules-based order and to threats against the rule of law," the president said. "We'll build an Indo-Pacific that is free and open, stable and prosperous, resilient and secure." Partners in the making: The White House aims to woo ASEAN countries by deepening economic ties that compete with their lucrative trade and investment partnerships with Beijing. An in-person appearance from the president helps reinforce Washington's commitment to support democracy abroad, experts say. But the Biden administration's Indo-Pacific strategy and its goal of "strengthening democratic institutions, the rule of law and accountable democratic governance" does not always align with all 10 members of ASEAN, a disparate group of nations that includes the dictatorial governments of Brunei, Cambodia, Vietnam, Laos and Myanmar — most of which are highly dependent on (and apprehensive about upsetting) China. Southeast Asian nations "are really trying to remove themselves from the narrative of being a prize to be won over to one camp or the other. They want to minimize fallout from major power conflict," said Anthony Nelson, vice president in the East Asia and Pacific practice at the Albright Stonebridge Group. Still, the Biden administration took great pains to reinforce U.S.-ASEAN relations at the conference and announced new initiatives to promote electric vehicles' use in the region, improve clean-water access and pledged to provide loans to support female entrepreneurs in South East Asian countries. But ASEAN nations mostly reaffirmed their intention not to side against Beijing in any economic conflict between the two superpowers, including those nations with close economic ties with Washington like Singapore, Malaysia and Thailand. "The U.S.-China relations are the most important relations, not just to the two countries, but also to our regional development as well," said Kung Phoak , Cambodia's secretary of state of the Ministry of Foreign Affairs and International Cooperation. "ASEAN remains neutral in this competition, and we don't want to choose sides."
| | | | POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP . | | | | | Want to receive this newsletter every weekday? Subscribe to POLITICO Pro . You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. ALSO TRAVELING IN ASIA: U.S. Trade Representative Katherine Tai arrived in Singapore on Monday to discuss the Indo-Pacific Economic Framework and pathways toward economic growth with Southeast Asian government officials. The meeting comes ahead of the Asia-Pacific Economic Cooperation summit , a regional economic forum with 21 member economies that support free trade across the Pacific. The ambassador will accompany Vice President Kamala Harris to the summit in Bangkok, Thailand, which kicks off on Wednesday. ANYONE INTERESTED IN A UKRAINE TRADE MISSION? American companies are already traveling to Ukraine in pursuit of business opportunities and the country is eager to host even more amid its ongoing conflict with Russia, Ukrainian Ambassador Oksana Markarova said last week at a U.S. Chamber of Commerce event. "I … admire those companies that already come and visit in Ukraine and we know how to get them in and out safely. So if you would like to do that, contact Myron, contact the Chamber and we will be happy to organize your visits, physical visits," Markarova said, referring to Myron Brilliant, the business group's executive vice president for international trade. So, Morning Trade asked the Chamber if a trade mission was in the works, and got a vague response that did not rule out the possibility. "We have been discussing with USG and Ukrainian officials, AmCham Ukraine, and our members the importance of planning now for the reconstruction and recovery of Ukraine. The Chamber will continue this important work in the weeks and months ahead," a Chamber spokesperson said. Read more here on U.S.-Ukraine preparations for post-war trade . CHAMBER CALLS FOR HALT TO COVID IP TALKS: Meanwhile, the Chamber is fed up with the Biden administration's refusal to reveal its position on whether to expand an IP waiver for Covid-19 vaccines to therapeutics and diagnostic products. "It's time for the Biden administration to oppose this failing and harmful proposal," the Chamber's executive vice president and chief policy officer, Neil Bradley, said in a statement. "Developing the next breakthrough treatment or cure requires decades of research and development and billions of dollars in private-sector investment – none of which is possible without reliable and enforceable IP protections." WTO members agreed in June to a five-year waiver of certain requirements that countries faced to issue compulsory licenses for the production of generic versions of Covid-19 vaccines. They also agreed to decide by Dec. 17 whether to extend a similar waiver for therapeutics and diagnostics. Debate on the issue is currently stalled at the WTO , despite the fast-approaching deadline. In the U.S. Chamber's view, "it's time to end this ideologically driven discussion that would only offshore American innovation and undermine U.S. national security by forfeiting our IP to foreign competitors," Bradley said. TOP BORDER OFFICIAL RESIGNS UNDER PRESSURE: Biden accepted the resignation of Christopher Magnus, the U.S. Customs and Border Protection commissioner on Saturday, who was asked to resign by Homeland Security Secretary Alejandro Mayorkas last week. Sources say: Magnus had faced internal and public criticism over his handling of the U.S.-Mexico border, with officials claiming Magnus was disengaged, and skipped internal meetings at a critical time for the agency, U.S. officials told CNN . The resignation comes after Magnus told the Los Angeles Times that he intended to stay at the agency . "President Biden appreciates Commissioner Magnus' nearly forty years of service and the contributions he made to police reform during his tenure as police chief in three U.S. cities," the White House said in a press release .
| | | | DON'T MISS POLITICO'S 2nd ANNUAL DEFENSE SUMMIT ON 11/16: The United States is facing a defining moment in the future of its defense, national security and democratic ideals. The current conflicts and developments around the world are pushing Washington to reshape its defense strategy and how it cooperates with allies. Join POLITICO for our second annual defense summit, "At a Crossroads: America's Defense Strategy" on November 16 in person at the Schuyler DC or join online to hear keynote interviews and panels discussing the road ahead for America's national security. REGISTER HERE . | | | | | | | | — Food import costs globally are projected to reach nearly $2 trillion this year, which is higher than previously expected, according to a report from the U.N. Food and Agriculture Organization published Friday. — Tesla is considering exporting made-in-China electric cars to the United States in a reversal that would reflect the automaker's deepening cost advantage at its Shanghai plant and slower demand from Chinese consumers, Reuters reports. — Ireland's parliamentary efforts to ratify the EU-Canada trade deal are unconstitutional, the Irish Supreme Court ruled Friday in the first such legal rejection by an EU member state, POLITICO's Shawn Pogatchnik reports. — The United States is placing India at the center of its ambition to detach global supply chains from the clutches of American adversaries, The New York Times reports. — The United States and EU need to get past their trade squabbles and focus on the bigger common challenge of dealing with China , trade policy veterans Rufus Yerxa and Kellie Meiman Hock write in The National Interest.
| | | | A message from Save American Solar Jobs: Commerce Secretary Raimondo: Please Reject Meritless and Damaging Solar Tariffs
In June, President Biden acted to support the U.S. solar industry by using his executive authority to preserve existing trade policy and prevent any new tariffs on solar panel components from being implemented for two years. Now Congress has passed a groundbreaking package of investments and tax incentives that will dramatically expand domestic solar manufacturing going forward.
Yet, the U.S. Commerce Department continues to consider solar tariffs that could be implemented after the President's tariff moratorium has expired. If not stopped, these meritless tariffs would slam the brakes on solar deployment, undermining efforts by the President and Congress to promote clean energy jobs and address climate change.
Save American Solar Jobs urges Commerce Secretary Raimondo to reject these meritless and damaging solar tariffs once and for all. | | | THAT'S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@politico.com , ahawkins@politico.com , gbade@politico.com and soverly@politico.com . Follow us @POLITICOPro and @Morning_Trade . | | | | Follow us on Twitter | | | | Follow us | | | | |
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