E-commerce. According to the European Commission, the World Trade Organization published July 26 after five years of negotiation the “stabilized text” of a plurilateral e-commerce agreement that “includes a set of ground rules on digital trade,” including the following.
- a permanent ban on customs duties on electronic transmissions
- commitments by participants to digitize customs documents and processes
- recognition of e-documents and e-signatures
- provisions to improve trust in the digital trade environment for both consumers and businesses, notably by strengthening consumer protection online
- provisions to make the international digital trade environment more reliable and affordable, including collaboration on cybersecurity risks
- initiatives to facilitate the participation of consumers and companies from developing countries in digital trade
According to the Commission, integrating the agreement into the WTO rulebook “will require consensus by all WTO members.” It is unclear when that may happen, though, because the U.S. said “the current text falls short and more work is needed.” A few other participants in the long-running initiative are not yet backing the agreement either.
AGOA. According to the Office of the U.S. Trade Representative, the annual U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum held recently in Washington, D.C., included discussions on a broad range of topics, including using the African Growth and Opportunity Act to further strengthen U.S.-Africa economic relations.
During the event U.S. Trade Representative Katherine Tai stressed the need for improvements to AGOA to increase the utilization of available trade preferences, better address modern challenges like supply chain fragility and climate change, and “bring more voices to the table.” Members of the African Union proposed a number of improvements as well, including simplified rules of origin (as well as cumulation with signatories of the African Continental Free Trade Area), less-frequent eligibility reviews, and a halt in the use of non-trade considerations in determining eligibility.
Prior to the forum, President Biden called on Congress to quickly reauthorize and modernize AGOA, which is currently slated to expire Sept. 30, 2025. Biden said AGOA forms “the bedrock of America’s economic partnership with African nations,” has increased the competitiveness of African products, and has promoted sustainable economic growth and resilient supply chains on both sides of the Atlantic. The New Democrat Coalition Trade Task Force echoed Biden’s call, saying AGOA should be reauthorized to “restore certainty to intercontinental trade, secure our supply chains, and build the foundation for the future” but should also be modernized to reflect that “Africa has changed dramatically since the inception of AGOA.” African Union members urged that the program be extended for at least 16 years.
Japan. USTR reports that during the fifth round of meetings under the U.S.-Japan Partnership on Trade, held July 29-30 in Washington, officials discussed the following issues: third-party digital economy regulations that present concerns, commitments under the U.S.-Japan Critical Minerals Agreement, and non-market policies and practices of third countries that have resulted in existing and rapidly emerging excess capacity in several sectors and could increase vulnerability to economic coercion.
IPEF. The Department of Commerce has announced the conclusion of the inaugural virtual meetings of the three bodies established under the supply chain resilience agreement that took effect earlier this year among members of the Indo-Pacific Economic Framework: the Supply Chain Council, which aims to strengthen the supply chains for those sectors and goods most critical to national security, public health, and economic well-being; the Crisis Response Network, which provides a forum for collective emergency response to exigent or imminent disruptions; and the Labor Rights Advisory Board, which brings together workers, employers, and governments to strengthen labor rights and workforce development across regional supply chains. Each of these bodies elected a chair and vice chair and is planning in-person meetings for August or September.
Kenya. The U.S. and Kenya have scheduled the seventh negotiating round on their strategic trade and investment partnership for Aug. 5-9 in Nairobi. USTR states that this round will primarily cover six topics: agriculture; customs, trade facilitation, and enforcement; environment; good regulatory practices, inclusivity; and workers’ rights and protections.
Philippines. Senior officials from the U.S. and the Philippines meeting July 30 in Manila under the 2+2 Ministerial Dialogue committed to continued work on (1) identifying this year projects for investment along the Luzon Economic Corridor, with a focus on critical transportation infrastructure in ports and rail and clean energy deployments to bolster the semiconductor industry, (2) creating more resilient, secure, and sustainable global value chains in critical sectors (including semiconductors), and (3) critical minerals processing.
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