Oklahoma U.S. Senator James Lankford joined all Senate Finance Republicans in a letter to President Biden requesting that the Administration begin digital trade negotiations with U.S. allies and partners in Asia.
“[D]uring your Administration, the United States continues to sit on the sideline,” the Senators wrote. “Our refusal to get into the game to set the rules for trade in the Indo-Pacific encourages potential partners to move forward without us and ensures China will hold the reins of the global economy…”
Lankford and the other GOP Senators urged the President to adopt digital rules that directly confront what they called China’s abusive trade practices. And they said ‘do it now.’
“These rules must ensure free flows of data, prohibit discriminatory measures, including duties and taxes, support consumer protection, promote cybersecurity, protect human rights, combat censorship, and preclude governments from forcing the transfer of proprietary source code and algorithms,” continued the Senators, adding, “United States negotiators should build on the digital trade chapter that was negotiated as part of the United States-Mexico-Canada Agreement to establish the type of high standard rules needed in the region.”
On October 4, United States Trade Representative Katherine Tai gave a speech in which she stated that the administration is committed to working with allies and partners on trade but neglected to lay out a specific plan.
In the absence of US leadership, allies like Singapore and New Zealand are joining digital trade pacts with the Chinese Communist Party (CCP). This provides China an opportunity to leapfrog the US in regional economic gains and further entrench its model of authoritarian internet governance. The Senators contend that expanded digital trade will have strategic and economic benefits in the United States and will offer a counter to CCP influence.
The full letter is available here