By David Lawder
WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen on Thursday said the Biden administration was committed to expanding trade and investment with Indo-Pacific countries, emphasizing the region’s strategic importance ahead of a major summit of Pacific Rim leaders this month in San Francisco.
In excerpts of remarks to be delivered later on Thursday, Yellen said deeper economic links with Indo-Pacific countries will help make U.S. supply chains more resilient and tap into a dynamic and growing market for U.S. exports.
The Biden administration is preparing to host leaders and other top officials from Asia-Pacific Economic Cooperation (APEC) countries in San Francisco from Nov. 11-17.
“As we look toward APEC later this month, let me state unequivocally: Claims that America is turning away from the Indo-Pacific are wholly unfounded,” Yellen said in the excerpts. “We are deepening our economic ties across the region, with tremendous potential benefits for the U.S. economy and for the Indo-Pacific.”
The Biden administration will host a seventh negotiating round for its Indo-Pacific Economic Framework for Prosperity (IPEF) initiative next week in San Francisco, aimed at reaching some agreements in time for the APEC summit.
IPEF, while far short of a traditional free trade agreement, is the Biden administration’s signature initiative to engage economically with Asian countries and provide them a trade and investment alternative to China.
Yellen’s excerpts did not mention China, but said deeper integration with Indo-Pacific countries would benefit the region and the U.S. She noted that U.S. two-way trade with the region reached a value of $2.28 trillion in 2022, up 25% since 2019, with the region taking nearly a quarter of U.S. exports.
“The economic case for our expanding trade and investment is clear. The Indo-Pacific is a dynamic and rapidly growing region. As it grows, we gain a fast-expanding customer base for U.S. firms and workers,” Yellen said.
Part of the reason for increased trade with the region has been the migration of U.S. supply chains away from China, a trend that started with tariffs imposed by former President Donald Trump in 2018 and accelerated since the COVID-19 pandemic.
Yellen said economic engagement with Indo-Pacific countries, including Vietnam, is “crucial to bolstering our supply chain security” to avoid bottlenecks and shortages that occurred as the world emerged from the pandemic. She repeated her desire to diversify supply chains to countries in the region through “friend-shoring” or using trusted allies as sources of supply.
“And achieving resilience through partnering with Indo-Pacific countries means gains for Indo-Pacific economies as well,” Yellen said.
Read the full article here
