The Biden administration aims to sign what could prove a “very powerful” economic framework agreement with Asian nations – focusing on areas including coordination on supply chains, export controls and standards for artificial intelligence – next year, Commerce Secretary Gina Raimondo said.
“It’s a priority for the president,” Raimondo, speaking in a roundtable discussion on Thursday at Bloomberg headquarters in New York, said of deepening US engagement with Asia. “America didn’t show up in that region for four years,” she said, alluding to the Trump administration’s record.
Raimondo said that her trip to Asia last month was designed to “assess appetite” for economic dialog, under the condition that President Joe Biden’s team isn’t planning to take up traditional trade talks. She underscored that rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership “as presented” is off the table.
“The demand for US presence and the demand for US reengagement was off the charts,” said Raimondo, who stopped in Singapore, Malaysia and Japan last month. What the administration envisions is a “new kind of economic framework for a new economy,” and the hope is to, “early in the new year, first quarter of next year, officially launch a process,” she said.
The framework will be “flexible,” with some countries perhaps not signing up to all of the elements, Raimondo said.
She said the aim is to engage not just developed nations such as Japan, Singapore, Australia and New Zealand but also emerging economies such as Malaysia, Vietnam and Thailand.
“I would love 12 months from now to be coming back here with something signed saying we’ve made progress,” the Commerce chief said. She said the agreement may not “culminate” in something that would require approval by the US Congress – which is needed for traditional trade agreements.
“It won’t be a trade deal, but it could be very powerful.”
