Biden Reviews Digital Trade Agreement with Asia Including Korea

Katherine Tai, USTR Representative (Photo by AP)

[Asia Economy Reporter Yujin Cho] The Wall Street Journal (WSJ) reported on the 20th (local time) that the United States is considering signing a digital trade agreement with its allies in the Asia-Pacific region, including South Korea.

WSJ, citing officials involved in the talks, stated that the U.S. is discussing a multilateral digital trade agreement with Asia-Pacific countries and is currently coordinating opinions within the U.S. administration between the security and trade sectors.

The White House National Security Council (NSC) and the State Department are actively in favor of concluding a digital trade agreement, but the U.S. Trade Representative (USTR) is taking a cautious stance, emphasizing the need to consider the rights of American workers.

However, Katherine Tai, USTR Representative, expressed that while prioritizing trade policy with a worker-centered approach, she does not oppose the digital trade agreement itself with Asian countries.

Adam Hodge, USTR spokesperson, said, "We are reviewing various methods with ministers from eight Asia-Pacific countries, and if the digital trade agreement is well prepared, it can play an important role in achieving our goals."

Jake Sullivan, U.S. National Security Advisor at the White House, stated, "There is no conflict of opinion between the NSC and USTR," adding, "We are working on various economic initiatives in the Asia-Pacific region and coordinating on key elements."

This plan by the Biden administration is being promoted as a measure to curb China's influence in the Asia-Pacific region.

WSJ evaluated that it is a strategy to demonstrate U.S. leadership in Asia amid increasing efforts to check China and to closely cooperate with allies on advanced technology issues.

WSJ did not disclose the names of the countries considered for the agreement but reported that "allies in the Asia-Pacific region are the target participants." South Korea and Japan are expected to be major target countries, while China is likely to be excluded.

The digital trade agreement is a multilateral agreement covering regulations and guidelines related to the trade of goods, services, and data through electronic means such as the internet and information and communication technology (ICT), as well as standards for the use of artificial intelligence (AI) and the overall digital economy.

Singapore, New Zealand, and Chile signed the world's first digital trade agreement, the Digital Economy Partnership Agreement (DEPA), last year, and South Korea and Canada are considering joining. WSJ forecasted that this DEPA could serve as a starting point for concluding digital trade agreements.

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