U.S. engagement in the Pacific is critical to this country’s workers, small businesses, values and economic and national security interests. The Indo-Pacific Economic Framework (IPEF) is an important initiative, recognizing the value of the U.S. as a standard-setter — for worker, environmental, digital and infrastructure standards — in order to continue as a 21st century global leader.

Kudos to President Biden as he heads to the West Coast to host the Summit of the Americas, the first time the U.S. has hosted the event since the original summit was hosted by President Clinton in 1994. This will be an important opportunity to hear from U.S. partners and discuss ideas for advancing the region. What happens after the summit, however, is even more important than the meeting. The administration must take the results and implement a comprehensive strategy to compete with China and advance the Western Hemisphere.

Over the past decade, China has sharpened its focus on countries considered to be in the U.S. zone of influence. China’s trade with Central and Latin America has skyrocketed from $18B in 2002 to $449B in 2021, making it the second largest overall trading partner in the region and the largest trading partner with Brazil, Peru, Uruguay, and Chile. Its investment in the region has also grown dramatically with its Belt and Road initiative now in 20 countries in the region and over $140 billion of investment.

ALI is pleased to release its new report: Creating Incentives to Join the IndoPacific Economic Framework. The report details the incentives which should be offered to encourage a broad group of countries to join the IndoPacific Economic Framework.

The first step in advancing IPEF will be offering sufficient incentives to attract a broader group of countries to join the framework, especially the Fair and Resilient Trade Pillar. While the ASEAN countries welcome U.S. regional reengagement, the Trade Pillar’s digital, labor, and environmental standards will require heavy domestic concessions from them.

National security concerns regarding China and supply chain shortages spurred by the pandemic have led to a bipartisan momentum to shore up American competitiveness and encourage U.S. manufacturing. Russia’s war in Ukraine and the resulting sanctions on Russia have raised new interest in reducing U.S. supply chain dependency on these autocratic regimes.

In late February, the White House released a plan to revitalize American manufacturing and secure critical supply chains, which details how to rebuild domestic supply chains by invigorating the U.S. industrial base. This policy shift towards restoring American competitiveness and manufacturing is also seen in the United States Innovation and Competition Act (USICA), a 2021 Senate bill aimed at countering China’s influence, and the House-passed America COMPETES Act of 2022.

Five years ago, the U.S. pulled out of the Trans-Pacific Partnership (TPP), a trade agreement that both parties ran against in 2016. By then, trade agreements had lost public trust and political appeal. Reasons for this turn against trade included the lack of a U.S. social safety net for workers and communities who were the losers from trade, frustration with China and other countries flaunting trade rules, and the escalation of outsourcing.

After years of multilateral trade negotiations, traditional trade barriers are, with some exceptions, quite low. Today, many global challenges arise from a disparity in the standards that countries use.

ALI is pleased to release its new report: A Worker-Centric Digital Agenda. The report builds on ALI’s previous reports, A Global Digital Strategy for America and Next Steps for U.S. Digital Leadership, to discuss digital policies that support workers and small business and how a digital trade agreement could be negotiated to incorporate these provisions.  

ALI is pleased to release its new report: Next Steps for U.S. Digital Leadership: Advancing Digital Governance with the Pacific and Europe. The report builds on ALI’s Global Digital Strategy for America released in February and recommends next steps to advance U.S. and global post-pandemic economic recovery, counter China’s technology challenge, and ensure that America plays a leading role in writing the digital rules for the 21st century.

Click here to read the report.

The United States is poised to launch a much-needed initiative to advance American global competitiveness. Done right, such an initiative could usher in a U.S. era of strong, inclusive and sustainable economic growth, along with reinvigorated global leadership. Both Congress and the Biden administration are contemplating major initiatives. They should take bold action, lest they squander this moment.

The new focus on competitiveness has been prompted by a confluence of factors: a global pandemic that highlighted supply chains and the importance of domestic manufacturing; a digital revolution that has emphasized the importance of digital inclusion, training and infrastructure; and the technological competitiveness of a risen China.

The development of the U.N. Guiding Principles on Business and Human Rights in 2011 followed on a series of highly publicized cases, starting with the 1984 disaster at the Union Carbide plant in Bhopal, India, where corporations acted with clear disregard for the rights of workers, indigenous communities, and political dissidents and human rights defenders.

The Guiding Principles established a new framework for defining the roles of states and businesses in protecting and respecting human rights. While broadly supported, the Guiding Principles also stirred a debate among business, government, and civil society about the appropriate role of so-called “voluntary” guidance vis-à-vis “binding” regulation. More recently, however, the overly rigid delineation of “voluntary” versus “binding” measures has broken down – often for good reason.

ALI was delighted that a group of Congressional Democrats, led by Congresswoman Suzan DelBene (D-WA), and including Representatives Jimmy Panetta (D-CA), Don Beyer (D-VA), Ron Kind (D-WI) and Teri Sewell (D-AL), introduced a resolution last week, directing the Office of the U.S. Trade Representative to resume the Environmental Goods Agreement (EGA) negotiations at the World Trade Organization within 90 days. The resolution states that the U.S. is a leader in the development of environmental goods but faces high tariffs for some of those products, and that restarting the EGA negotiations “represents a significant opportunity to help countries across the world access high-quality affordable environmental goods while also leveling the playing field for American manufacturers and supporting green jobs.".

The United States must launch a comprehensive global digital strategy to prepare for the post-pandemic future. While the digital revolution has generated many benefits for society, this rapid change, accelerated by the pandemic, also has created economic disruption, devastating many in the middle and working classes and posing challenges to American democracy. A global digital strategy, with the right policies, will allow the U.S. to counter these negative impacts and harness the potential of this revolution. It will enable us to create a more inclusive and growing American economy, establish digital governance to protect democracy, support inclusive economic growth in developing countries, and position the U.S. as a global digital leader.

Launching a global digital strategy is also vital to our ability to counter the challenge posed by China.

It is important to acknowledge that foreign policy and trade must begin at home, and attention must be paid to jobs lost and communities hurt due to trade, and Americans will remain skeptical of trade deals, as long as their social safety net is lacking. Developing a "trade policy for the middle class," is a focus of ALI, exploring issues that need to be addressed in order for the U.S. to engage in 21st century trade agreements that are sustainable and inclusive.

The piece below by Tim Meyer, discusses a new approach for updating Trade Adjustment Assistance (TAA), which expires in July 2021. ALI shares pieces from selected authors, which do not necessarily reflect the views of ALI but which shed light on issues of importance to ALI's mission.

ALI’s A Global Digital Strategy for America: A Roadmap to Build back a More Inclusive Economy, Protect Democracy and Meet the China Challenge is a comprehensive roadmap to enable the United States to be a digital leader in the 21st century.

Click here to read the report, or here to read an executive summary.

The report asserts that this new global digital strategy must include two interrelated pillars: Investing in America and Leading Globally. At home, it calls for landmark investments in digital training and connectivity, the development of a digital governance regime, and measures to upgrade America’s technological competitiveness among other topics. The report emphasizes that these investments must come with implementation of diversity, equity and inclusion policies to ensure that the benefits are widely shared among all Americans.

When he takes office in January, President-Elect Biden will inherit the worst set of domestic and global crises since FDR - a global pandemic, a ravaged economy combined with social unrest, deeply frayed global ties, and a cold war with China.

These circumstances necessitate a reexamination of traditionally held views, and an openness to break with well-established policies. This crisis brings the opportunity for new creativity to address our new realities. Four new realities should guide the Administration’s thinking.

At the American Leadership Initiative, we work every day to develop a 21st Century agenda for advancing American global leadership based upon American interests and values. Unfortunately, America’s moral authority as a global leader has been undermined by systemic racism brought to light by police killings of George Floyd, Rayshard Brooks and others. Many around the world have looked on in dismay as violent police assaults on peaceful protesters and journalists on American streets look very much like images they are used to seeing in repressive regimes.

Record numbers of Americans have filed for unemployment because of the coronavirus pandemic, with grim job losses predicted over the coming months. Projections by the St. Louis Federal Reserve show U.S. unemployment could reach 47 million, or 32 percent, considerably higher than the 25 percent unemployment peak during…

For the past three and a half years, the U.S. government has denigrated and weakened global institutions and alienated our allies. The impact of this “America First” policy and lack of American global leadership has harmed American interests, including our ability to address the COVID-19 global pandemic. But there are actions our government can take now to reverse this course and take on the current crisis.

Governments buy a wide variety of goods and services from the private sector, from bridges and road construction, to power plants and digital infrastructure, to office and hospital supplies. In 2018, global government procurement amounted to $11 trillion or 12 percent of global GDP. The U.S. government procurement market alone was $837 billion in 2010. While…

As the U.S. and China prepare to sign the “Phase 1" trade deal announced by the White House, it seems clear that China has won this round of the trade war. In addition to the significant self-inflicted economic losses the U.S. sustained from the trade war it initiated, it has magnified this loss by squandering its leverage with a deal which allows China to preserve its mercantilist economic system, continue subsidizing its state-owned-enterprises and imposing other discriminatory industrial policies, while insulating itself from further U.S. tariff increases, at least until after the election.

Now that Prime Minister Boris Johnson has won the United Kingdom elections by a landslide, Brexit seems like a sure thing. However, the initial act of removing Britain from the European Union is only the first in a multi-act play — the details of the divorce are still vague and likely will take years to work out. The Trump administration is anxiously lining up to be the first to negotiate a trade deal with a new Britain, once it is unshackled from the EU.