Although details of the plan have yet to be released, the framework is not expected to attempt to bring the United States back into the TPP. A cross section of economists, diplomats and trade experts say the administration faces a battle to create an effective pact that brings together many Asian economies to set the rules of engagement for trade and new technologies .

President Biden is not expected to offer tariff cuts and other traditional market-opening tools to trading partners, which are opposed by U.S. labor groups and their Democratic allies as well as some Republicans on the grounds that ‘they come at the expense of jobs and manufacturing in the United States. .

At the same time, these so-called market access measures are seen as key to strengthening US relations in the region, especially with less-developed countries in South and Southeast Asia looking to sell more. of agricultural and manufacturing products on the American market.

“Market access could be one of the important returns that countries in the region expect from US leaders,” South Korean Commerce Minister Yeo Han-koo said after a meeting with US officials in Washington last month. last.

Without market access measures, the framework could become just another club for the United States and its wealthy allies such as Japan, Australia, New Zealand and Singapore, which already operate on values ​​and rules similar, according to some diplomats and economists.

“The real question is, ‘How do you get countries like Vietnam and Indonesia on board?'” said Bill Reinsch, senior adviser at the Center for Strategic and International Studies. “I think it’s the countries that are going to be cautious, that are going to take a wait-and-see approach to see how it evolves by entering into these kinds of commitments.”

The Biden administration sees the new Indo-Pacific framework as an important step in U.S. efforts to move beyond security ties to counter China’s growing ambitions in Asia.

Mr Biden boosted the substantial US presence last year with the strengthening of the “Quad” group comprising India, Japan and Australia, as well as a new submarine pact with Australia and the United Kingdom. But it has lacked a comprehensive economic strategy since its withdrawal from the TPP in 2017 amid bipartisan concerns over the negative impact of trade deals on US jobs.

The new framework comes as China steps up its economic diplomacy in the region. In recent months, China has applied to join the new version of the TPP and the Digital Economy Partnership Agreement, an alliance between New Zealand, Chile and Singapore seen as a model for future digital trade deals. . China is also strongly promoting its role in the Regional Comprehensive Economic Partnership, a 15-nation trade deal launched last month.

Beijing’s trade-friendly measures have fueled concerns among U.S. businesses and close allies. They fear that the absence of the United States from regional trade agreements will give Beijing an opening to establish its leadership in setting rules and standards for trade and the economy, especially in emerging technologies such as artificial intelligence and digital business.

Mr Biden unveiled the idea for the new economic framework at the East Asia summit in October and is expected to unveil details in the coming weeks.

“This is an extremely important aspect of our efforts to secure a free and open region,” said Laura Rosenberger, senior director for China at the White House National Security Council, in a recent address to the National Office. Asian research.

She stressed “the importance of American leadership in setting the rules of the road…so that we don’t let China disadvantage American workers and businesses in the long run.”

The framework will be structured as a set of individual agreements, which countries in the region can pick and choose to sign. It will likely exclude tariff cuts and other legally binding market-opening measures that require congressional approval.

U.S. Trade Representative Katherine Tai will lead the trade component of the framework, which will include digital trade, labor standards and trade facilitation. Commerce Secretary Gina Raimondo will oversee the supply chains, infrastructure and decarbonization segments, as well as taxation and corruption.

In crafting the strategy, the administration must balance the demands of trading partners, American businesses and workers, and the progressive wing of the Democratic Party.

U.S. business groups have pushed for strong digital trade provisions to be included in the framework, hoping it will serve as a vehicle to secure U.S. leadership in emerging technologies like artificial intelligence and 5G.

Charles Freeman, senior vice president for Asia at the US Chamber of Commerce, said a digital deal must be “front and center” of the overall strategy.

“There’s a lot to be done to get us back to some sort of competitive parity with China,” he said.

Meanwhile, some members of Mr. Biden’s party fear the framework could become a backdoor scheme to introduce sweeping rules in digital commerce and other areas that harm workers and consumers without congressional approval.

“The United States has thus far failed to effectively regulate the technology sector here at home to ensure that consumers’ privacy rights are protected,” said Rep. Andy Levin (D., Mich. ) during a House hearing last month. “How can we ensure that US engagement in digital trade in future agreements does not perpetuate a race to the bottom? »

Some governments in the region, including Japan, Australia and Singapore, have urged the United States to return to the TPP, even though administration officials have ruled it out, citing lack of sufficient support from one either of the parties in Congress and the opposition unions.

For now, those governments welcome signs of Mr. Biden’s broader economic engagement with the region.

“Short of revisiting the TPP, there are many areas where the United States can play a leadership role,” Koji Tomita, US Ambassador to Japan, said at a recent roundtable.

Write to Yuka Hayashi at [email protected]