Digitrade Digest #45
US to focus on Taiwan, USTR releases the annual trade policy agenda for 2022 and more
The Digitrade Digest delivers the latest developments in global digital trade right to your inbox every week. To get the news as it happens, follow us on Twitter @DigiTradeDaily.
US
U.S. to intensify engagement with Taiwan on trade issues: USTR
FocusTaiwan: The United States Trade Representative (USTR) has said it plans to intensify its engagement with Taiwan to address outstanding trade concerns while detailing its ongoing efforts to "realign" the U.S. trade relationship with China.
"The United States has a longstanding and vibrant trade relationship with Taiwan, a democratic ally and important trading partner in the region," the USTR said in its 2022 Trade Policy Agenda and 2021 Annual Report, which was released on Tuesday.
In the report, the USTR said that in 2021, the U.S. and Taiwan convened a key forum for bilateral trade talks -- the Trade and Investment Framework Agreement (TIFA) Council -- for the first time since 2016.
Through this engagement, it said, the sides agreed to combat the use of exploited labor in global supply chains and to establish a working group under TIFA dedicated to labor issues.
The U.S. and Taiwan also committed to "intensify engagement" aimed at addressing outstanding trade concerns, including market access for U.S. beef and pork, as well as U.S. concerns in areas such as copyright legislation, digital piracy, financial services, investment, and regulatory transparency, the report said.
USTR Releases 2022 President’s Trade Policy Agenda and 2021 Annual Report
USTR.GOV: Ambassador Katherine Tai and the Office of the United States Trade Representative today delivered President Biden’s 2022 Trade Policy Agenda and 2021 Annual Report to Congress. This report details USTR’s work to implement the Biden Administration’s trade priorities and advance a worker-centered trade policy.
“President Biden believes that America is at its best when we are leading on the world stage to deliver economic prosperity and growth to our citizens and communities,” Ambassador Tai said. “The 2022 Trade Policy Agenda and 2021 Annual Report provide a detailed look at some of the key accomplishments in the first year of the Biden Administration, and how we intend to build on this progress. I look forward to continuing to lead this office and working with my colleagues across the administration to deliver on President Biden’s vision for trade that is equitable, fair, and lasting.”
Over the last year, USTR has pursued a new approach to trade policy that empowers workers, defends their rights, and encourages a race to the top. By reaching new and historic agreements with our allies, Ambassador Tai and USTR have revitalized important global partnerships and built coalitions around shared priorities and values.
To advance a worker-centered trade policy, Ambassador Tai and USTR have consulted extensively with Congress and a wide range of key stakeholders to develop a comprehensive agenda that ensures the benefits of trade reaches everyone, rather than a select few.
The 2022 Trade Policy Agenda and 2021 Annual Report highlight several notable accomplishments over the last year, including USTR’s work to promote sustainable environmental practices in trade policy, enforce existing agreements, improve the resilience of global supply chains, and combat the COVID-19 pandemic. It also details how USTR and the Biden Administration have re-aligned the United States-China bilateral trade relationship in order to defend the rights of American workers, farmers, producers, and businesses and ensure they can fairly compete on a level playing field.
In 2022, USTR will continue to implement President Biden’s trade priorities as the United States recovers from the COVID-19 pandemic and builds back better. Ambassador Tai and USTR look forward to releasing additional details in the near future on the Indo-Pacific Economic Framework, a key part of the Administration’s Indo-Pacific Strategy that will strengthen the United States’ ties to an important and dynamic region. Additionally, USTR will continue to support the Biden Administration’s work to coordinate with our allies on shared priorities, while exploring new partnerships around the world.
The full report can be viewed here: https://ustr.gov/sites/default/files/2022%20Trade%20Policy%20Agenda%20and%202021%20Annual%20Report.pdf
A fact sheet outlining key aspects of the President’s 2022 Trade Policy Agenda and 2021 Annual Report is available here: https://ustr.gov/sites/default/files/Fact%20Sheet%20-%20USTR%202022%20Trade%20Policy%20Agenda%20and%202021%20Annual%20Report.pdf
South Korea
S. Korea, Australia vow to boost ties in digital trade
The Korea Herald: South Korea and Australia agreed Friday to enhance cooperation on e-commerce and other digital trade issues during a senior-level dialogue, Seoul's industry ministry said.
Kim Wan-ki, chief of South Korea's trade policy bureau under the trade ministry, held a videoconference with Australia's First Assistant Secretary of the foreign and trade department Elisabeth Bowes, and the two sides discussed a wide range of issues on digital trade, including trade norms, standards and the industry's transition to digital.
Seoul and Canberra vowed to share their policy measures on digital trade and to work closely on the World Trade Organization (WTO)'s e-commerce negotiations and other discussions on regional digital trade norms.
They also agreed to actively share related information and expand joint projects to seek new business chances in the digital sector and to help their industries' transition to digital, it added.
"The two nations are like-minded partners that have similar policy goals and commitment under the changing global trade circumstances," the ministry said in a release.
Australia is a leading nation in terms of setting global rules on digital trade. It is a co-convenor of e-commerce negotiations among the WTO member nations, which were launched in 2019 to set up rules on online transactions within its existing frameworks, according to the ministry. (Yonhap)
UK
UK-New Zealand Free Trade Agreement: benefits for sectors of the UK economy
Gov.uk: The agreement is not yet in force. Both the UK and New Zealand are required to complete their respective domestic procedures for the agreement to come into effect. Once approved by both parliaments, businesses will be able to trade under its terms.
Digital and data
The UK digital industry exported £130 million worth of services to New Zealand in 2019[footnote 13] and is a key driver of global innovation thanks to strong investment in digital infrastructure such as 5G.
This deal will create opportunities for the UK’s cutting-edge digital and tech sectors by facilitating the free flow of data, making e-commerce easier for businesses and supporting innovation and emerging technologies.
Free flow of data
The free flow of trusted data is essential for modern business. In 2019, 40% of £651 million services exported to New Zealand were delivered digitally.This deal ensures that data can flow freely between the 2 countries whilst retaining the UK‘s high standards on data protection. It will ensure that businesses do not face unjustified barriers to data flows, such as the requirement to store their data in costly servers in New Zealand.
British businesses operating in New Zealand can plan their business growth knowing that they can collect, process, and transfer data between the two countries, without facing unnecessary red tape or costs.
Boost for e-commerce
The deal recognises the central importance of digital trade to growth across all sectors of the economy. The deal supports and protects online shoppers, and it will also help UK businesses to trade with New Zealand in modern services such as finance, creative industries, architecture, law, and professional services. In 2020, services made up around 80% of the UK economy.
Consumers and suppliers alike will benefit from commitments to minimise spam and false descriptions of products in online marketplaces. The increased consumer protection offered by the deal will give consumers in the UK and New Zealand greater confidence when sourcing their favourite British and Kiwi products on the internet.
Greater opportunity to do business
The deal will cut red tape for our advanced tech and services companies and make it easier for smaller businesses to break into the New Zealand market. It does this by ensuring the legal validity of electronic contracts, electronic signatures and electronic authentication. It also provides a foundation for cooperation on electronic invoicing and digital identities.
Greater cybersecurity
The deal ensures that businesses don’t have to share encryption keys – critical commercial secrets for strong cybersecurity products – to enter the New Zealand market. The UK’s flourishing cybersecurity sector is well positioned to benefit from this agreement with the number of UK cybersecurity businesses growing by 75% since 2017 to 2018 and 48% of firms already exporting.
Start-ups and scale-ups
This deal gives businesses full and fair access to invest across the UK and New Zealand economies, making it easier than ever to invest in promising start-ups. This could boost the $15 billion of venture capital which according to Tech Nation was invested in UK technology companies in 2020.
Both countries have committed to cooperation on and promoting digital innovation and supporting emerging technologies to maximise the benefits of trade. The UK and New Zealand have also agreed to cooperate on improving digital inclusion – so that all businesses and people can participate in and benefit from the opportunities of digital trade.
The Digitrade Digest is a weekly publication of the Digital Rights Program at Public Citizen.