[CTC] Bianchi looks to create momentum on IPEF as pressure mounts on digital

[Arthur Stamoulis]

BY  ARI HAWKINS <mailto:ahawkins at politico.com>
Presented by AAU

— Deputy U.S. Trade Representative Sarah Bianchi is meeting with officials in Tokyo this week, as Indo-Pacific Economic Framework countries ratchet up pressure on American officials to clarify the country's digital priorities.


BIANCHI LOOKS TO CREATE MOMENTUM ON IPEF: Deputy USTR Sarah Bianchi is kicking off a four-day visit to Tokyo today, which will include talks with senior economic officials focused on the Indo-Pacific Economic Framework and shoring up the supply chain, the trade agency said on Thursday <https://go.politicoemail.com/?qs=3b76c9204b31cdc6cc94e60d352019e1228e1d21fe555d0371efd0bdb56af5448b415f5d44d8ad3a9ceafb738670fa55>.

Bianchi is scheduled to meet with vice minister of economy, trade and industry, Hosaka Shin, as well as United States Ambassador to Japan Rahm Emanuel, as Washington moves to enhance engagement with Indo-Pacific countries to counter China’s regional clout.

Elephant in the room: Officials from Japan, New Zealand, South Korea, Australia, Singapore and other IPEF countries in recent deliberations have urged the U.S. to incorporate far-reaching digital commitments in past trade deals into IPEF texts.

That means taking a page out of the playbook of the United States-Mexico-Canada Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which includes provisions supporting the free flow of cross-border data and prohibiting data localization requirements for businesses.

But American officials have effectively frozen conversations over Washington’s digital priorities for IPEF since spring, following scrutiny from progressive lawmakers in Washington, according to three officials involved in negotiations, who were granted anonymity because they were not authorized to speak on record.

A spokesperson from USTR pushed back against that characterization in a statement to Morning Trade and said “we continue to take a thoughtful approach to digital negotiations, including consultations with stakeholders and Congress.”

“We are having robust discussions on the digital economy. We made progress during the fifth negotiating round in Bangkok and anticipate making even more progress as we pursue our ambitious negotiating schedule with our partners.”


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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