APEP, IPEF and CCT: Biden’s Initiatives

President Joe Biden’s Administration has focused on «a labor-centered trade policy that fosters inclusive prosperity,» including the Americas Partnership for Economic Prosperity (APEP), launched on Friday.

A U.S. congressional analysis notes that Biden’s policy does not seek to resume new Free Trade Agreements (FTAs).

Biden launched a bilateral Trade and Technology Council (TTC) with the European Union to cooperate on bilateral and global issues (e.g., standards, digital trade, export control, and non-market economy issues).

In particular, the CST has been key to joint trade responses on Russia.

Also, the Biden Administration launched the Indo-Pacific Economic Framework for Prosperity (IPEF), which covers selected trade issues, supply chains, clean energy, decarbonization, infrastructure and taxation, and anti-corruption.

Other new efforts include APEP, a trade initiative with Taiwan, and dialogue with the United Kingdom.

In general, the talks currently exclude tariffs and some market access provisions.

APEP

This alliance is made up of: Barbados, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Peru, United States, Dominican Republic and Uruguay.

«(APEP is) a historic initiative that will unite our hemisphere to drive sustainable and inclusive economic growth,» Biden said Friday in a virtual event.

Biden participated, along with officials from the other member countries, in the launch of APEP, in a virtual event.

APEP aims to boost competitiveness, build more resilient regional supply chains, create quality jobs, combat climate change and revitalize economic institutions in the Western Hemisphere.

At the same event, Raquel Buenrostro, Secretary of Economy, stressed that it is essential to take advantage of the international situation and make progress in terms of the integration of countries throughout the Americas, and to make the most of the challenges we have faced in recent years.

Biden commented that APEP seeks to create more resilient supply chains and that regional economic security is based on diverse, secure, transparent and sustainable supply chains.

Biden also recognized the importance of diversifying and rebalancing supply chains to minimize the risks of disruption.