Digitrade Digest #89
US Kenya to hold first STIP talks, EU and Thailand relaunch trade talks, IPEF next round is in Bali and more…
Africa
STIP-off: U.S., Kenya to hold first trade and investment round next month
Insidetrade: U.S. negotiators will head to Kenya next month for the first official negotiating round under their Strategic Trade and Investment Partnership.
The Office of the U.S. Trade Representative, which will lead the talks, announced the April 17-20 round on Thursday. The U.S. delegation will be led by Assistant USTR for Africa Connie Hamilton “and will include representatives from several other U.S. government agencies,” the announcement reads.
The first official round follows what the sides called “conceptual discussions” held in Washington, DC, in early February. “During those meetings, the United States and Kenya engaged in productive discussions and exchanged views on the key concepts to be addressed in the trade areas set out in the July 14, 2022 joint statement launching the STIP initiative,” USTR said.
More details on the April negotiating round will be released later.
After the initiative was announced last summer, the U.S. in August said it hoped for “economically meaningful outcomes” in several areas: “(1) agriculture, (2) anti-corruption, (3) digital trade, (4) environment and climate action, (5) good regulatory practices, (6) micro, small, and medium size enterprises, (7) protecting worker’s rights and protections, (8) supporting the participation of women, youth, and others in trade, (9) standards collaboration, (10) trade facilitation and customs procedures, and (11) services domestic regulation.”
Like other Biden administration trade initiatives, the STIP talks do not cover traditional market access, though USTR has not ruled out a more comprehensive deal down the line. Kenyan officials have suggested the partnership could be a stepping stone toward a free trade agreement.
The Trump administration began FTA talks with Kenya that its predecessor has not resumed. Many U.S. lawmakers have said they hope President Biden will change course and target Kenya for a traditional trade deal.
TTC
TTC ‘digital identity’ roundtable scheduled for late March
Insidetrade: U.S. and European Commission officials later this month will hold a roundtable event with stakeholders to discuss ongoing trans-Atlantic conversations about digital identity.
Officials from the U.S. National Institute of Standards and Technology and the EU Commission will provide updates on the work of the EU-U.S. Trade and Technology Council’s “Digital Identity Subgroup” during the event, set to take place in Brussels and virtually on March 29, according to a statement by the Trade and Technology Dialogue, an EU-funded project that supports TTC stakeholder engagement.
The government representatives “will present on the respective EU and U.S. approaches to digital identity, and engage with stakeholders through panels and Q&A sessions,” according to the statement.
In a joint statement following the last TTC ministerial, held last December in Maryland, the U.S. and the EU announced they had launched several workstreams to increase standards cooperations, including on digital identity.
A “National Cybersecurity Strategy” issued by the Biden administration earlier this month identifies support for development of a “digital identity ecosystem” as a key objective. The strategy also notes that the U.S., via the TTC, is “coordinating across the Atlantic to combat shared threats and demonstrate how market approaches to digital trade, technology, and innovation can improve the lives of our citizens and be a force for greater prosperity.”
The next TTC ministerial is expected to take place in Sweden this spring or early summer.
IPEF
Indo-Pacific trade negotiators flock to Bali
Politico: U.S. trade officials are in Bali, Indonesia, this week for the latest round of negotiations over the Indo-Pacific Economic Framework.
The Commerce Department and Office of the U.S. Trade Representative have each dispatched delegates for this set of talks, which will cover all four of the agreement’s pillars: trade, supply chains, clean energy and taxes. The talks begin today and conclude March 19.
The 13 countries participating in the IPEF negotiations have already floated text for many parts of the agreement, and it’s expected that even more proposals will be put on the table in the coming days. U.S. officials are pressing forward with an aggressive timeline that would see much of the agreement finished before the end of the year.
Digital deal: Several industry groups are specifically eager to see progress on the chapter dedicated to digital trade. That’s expected to be one of the more consequential but also contentious parts of the pact as negotiators forge an agreement that accommodates countries at varying stages of development.
Jason Oxman, president and CEO of the Information Technology Industry Council, said in a statement that IPEF represents “an important forum for the United States to push for strong digital trade commitments.” Those commitments should cover data flows, technical standards, tech supply chains and more, the group argues.
Bits from Bali: Are you reading this newsletter from an Indonesian hotel room because you’re participating in or observing the talks? Your host back in chilly Washington would love to get the download from on the ground. Drop me a note.
EU
EU and Thailand relaunch trade negotiations
ec.europa: Today, the EU and Thailand announced the relaunch of negotiations for an ambitious, modern and balanced free trade agreement (FTA), with sustainability at its core. This announcement confirms the key importance of the Indo-Pacific region for the EU trade agenda, paving the way for deeper trade ties with the second largest economy in South-East Asia and further strengthening the EU's strategic engagement with this burgeoning region.
The aim of the FTA will be to boost trade and investment by addressing a wide range of issues such as: market access for goods, services, investment and government procurement; swift and effective Sanitary and Phyto-Sanitary procedures; the protection of intellectual property rights including Geographical Indications, and the removal of obstacles to digital trade and trade in energy and raw materials, thereby supporting the digital and green transitions. Sustainability will also be at the heart of this agreement, with robust and enforceable disciplines on Trade and Sustainable Development (TSD). These will be in line with the Commission's TSD review Communication of June 2022, supporting high levels of protection for workers' rights, for the environment, and the achievement of ambitious climate goals.
US
Joint Statement from the 13th U.S.-Japan Policy Cooperation Dialogue on the Internet Economy
USDepttofState: The United States and Japan renewed their shared commitment to open, interoperable, reliable, and secure digital connectivity and information and communication technologies to support growth of the digital economy during the 13th meeting of the U.S.-Japan Policy Cooperation Dialogue on the Internet Economy, hosted in hybrid format by the United States on March 6 and 7, 2023.
The dialogue included discussions with private sector representatives from both countries on the promotion of open, interoperable, and secure fifth generation (5G) wireless technologies, networks, and services; public-private partnerships to support the development of the digital economy in third countries; international coordination in areas such as artificial intelligence (AI), data protection and privacy, the free flow of data, advancing digital freedom, and cybersecurity capacity building; public-private collaboration to foster public trust and support for responsible stewardship of the Internet and digital connectivity; and use of information and communications technology (ICT) that contributes to green and sustainable growth. The U.S. and Japanese governments also welcomed a joint statement submitted to them by private sector representatives from the American Chamber of Commerce in Japan and Keidanren.
Both countries recognized the importance of promoting the development and deployment of open, secure, and resilient 5G networks in advanced and emerging economies to ensure countries, companies, and citizens can trust that firms providing equipment, software, and services will support the development of the digital economy, while strengthening cybersecurity and protecting privacy, intellectual property rights, digital freedom, and human rights. Both countries recognized the importance of promoting secure and reliable global submarine cable networks and continuing relevant information exchanges on their development and deployment. Both countries also reaffirmed their commitment to an inclusive, open, and transparent system of Internet governance based on multi-stakeholder models.