Biden Administration Advances Indo-Pacific Digital Trade Agreement... "Aimed at Containing China"

Japan, Australia, New Zealand, Canada, Chile, Malaysia, and Singapore Likely to Participate
US Reinitiates Economic Integration in Indo-Pacific Amid Growing Influence of China

[Image source=Yonhap News]

[Asia Economy Reporter Kim Suhwan] The Joe Biden administration in the United States is reportedly pursuing digital trade agreements with key Asian countries as part of efforts to curb China's influence in the Asia region.

On the 12th (local time), Bloomberg News cited sources reporting that the U.S. government is considering advancing new digital trade agreements with Asian countries including Canada, Chile, Japan, Malaysia, Australia, New Zealand, and Singapore.

According to sources, the digital trade agreements aim to establish various standards related to the digital economy, such as the use of big data, trade facilitation, and tariff policies on electronic products.

This push for trade agreements is interpreted as reflecting the Biden administration's intention to check China's economic influence while establishing new trade relations with countries in the Indo-Pacific region.

Previously, in 2017 during the Donald Trump administration, the U.S. withdrew from the Trans-Pacific Partnership (TPP).

This agreement, aimed at integrating the Indo-Pacific regional economy and including provisions such as tariff eliminations on various goods including manufactured and agricultural products, was concluded during the Barack Obama administration. At that time, analyses suggested that the agreement was also intended to counter China's expanding influence in the Asia region.

The signing ceremony of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) held in March 2018 [Image source=Reuters Yonhap News]

Ultimately, the Biden administration's pursuit of new trade agreements reflects the U.S. government's renewed interest in and active promotion of policies related to Indo-Pacific regional economic integration and efforts to counter China, which had stalled after the Trump administration's withdrawal.

Earlier in April, Wendy Cutler, former Acting Deputy U.S. Trade Representative (USTR), wrote in an article sent to the Brookings Institution that "the conclusion of digital trade agreements will return the priority of U.S. trade policy to Asia."

Charles Freeman, Senior Vice President of the U.S. Chamber of Commerce, also stated, "We support the U.S. pursuing new digital trade agreements after withdrawing from the TPP," emphasizing, "It is necessary to establish new norms that look to the future. Now is the right time to conduct such discussions."

However, Bloomberg News reported that if the agreement is actually concluded, various U.S. industries including labor, agriculture, and services may face some disadvantages, potentially leading to opposition to the agreement from political circles.

Nigel Cory, a researcher at the nonprofit Information Technology & Innovation Foundation, said, "The conclusion of new trade agreements may raise issues where certain industrial sectors have to sacrifice benefits," adding, "Overcoming this is the most important challenge."

This content was produced with the assistance of AI translation services.