Transcripts For CSPAN2 U.S. 20240703

The authors of the books featured. Next discussion about the Biden Administrations trade policy and agenda featuring trade representative katherine tai, talked about ongoing trade negotiations. Thank you again for being present. We will start now. [laughter] good morning. Welcome to the center for American Progress both people here in the room as well as as people online. My name is alan, Senior Vice President for National Security and International Policy here at cap. Before we get into todays events i wanted to take a moment to extend condolences to all affected by the conflict in israel this weekend. Israeli and palestinians, civilians alike and americans as well. Hamas act of terror on innocent civilians aree deplorable and must be widely and forcefully condemned. As a Global Community its imperative that we come together to bring an end to the violence and to this violence and address the underlying cycles of abuse and oppression in the region acn innocent siblings are deplorable and must be widely and forcefully condemned civilians are deplorable and must be widely and forcefully condemned by us. It is important we wring an end to the violence and address the underlying cycles of abuse and oppression in the region. All of us here continue to hope for and work towards a swift resolution. As for todays events, im looking forward to todays program because its clear were at a pivot point for the next generation of trade policy as the world confronts the effects of climate change, as the Biden Administration prioritizes workers rights and as geopolitical dynamic shift. It is crucial we chart a path forward on trade. Who better to discuss up at four the 19th United States trade representative, the principal trade advisor, negotiator and spokesperson on u. S. Trade policy in the president s cabinet. She has spent most of her career in the service focusing on International Economic diplomacy monitoring and enforcement, and prior to her role as u. S. Trade representative, she served as chief trade council on the house ways and means committee. She helped to shape u. S. Trade law and negotiation strategies in both bilateral and multilateral trade agreements including the u. S. Mexicocanada agreement. And we are thrilled to welcome her back for her second visit. Well, kind of. In april 2021, she delivered the keynote at a Virtual Event on u. S. Trade policy. Today we are delighted to welcome her to the stage in person. Ambassador will deliver keynote remarks and sit down with the ceo for conversation followed by audience comment. Ambassador, welcome. [applause] well, hello, everyone. Thank you for the kind introduction. Before i get started i want to take a moment to acknowledge the horrific terrorist attacks in my thoughts are worth those who have been impacted by this violence. To be here today, i do want to say that it is wonderful to be here with all of you in person. To share how we are delivering through our trade agenda on President Bidens vision to build our economy from the middle out, and the bottom up. Patrick, thank you so much for having me today. You have long been a catalyst for change. You dedicating your career to lifting up workers into raising the quality of life of communities around the world, including as u. S. Ambassador to south africa. You transformed hope into tangible progress for so many people. It is especially meaningful to share the stage with you. Change is what our administration is about. Change for the better, for our workers, for more communities across the country, and for our planet. We are beyond just talking, in our third year, we are transforming trade and delivering results. When President Biden asked me to serve as his trade representative, he cast me with putting workers at the center of our trade initiative. That is because the president s vision is an economy where, as he puts it, everyone is cut in on the deal. As the president said at the United Nations last month, the United States has a duty to join together with partners who share a common vision of the future of the world. Where our children do not go hungry, where workers are empowered and our environment is protected. Where entrepreneurs and innovators in a world of uncertainties and growing economic insecurity, the status quo we know is not good enough. And we are doing something about it. At its core, our workers entered trade policy is about people. The economy is more than numbers. It is people. So our Economic Policy must work for our people. Our work to implement and enforce the United Statesmexicocanada agreement exemplifies this belief. Trade tools are not trophies to be admired on shelves, they are living arrangements between dynamic economies, and i meant to be used and put to the test. And that is exactly what we are doing,. We are actively working with mexico to advance labor cases through the u. S. Mc eight the usmcas Rapid Response mechanism to make sure this agreement helps drive a race to the top. About 90 of the cases have been in the auto sector. And we are seeing real change and success for workers and independent unions in mexico. New collective bargaining agreements, major salary increases, safer working conditions. This is having a real impact on working peoples lives, not only in mexico, but also here at home. Because elevating labor standards in mexico and powers u. S. Workers by reducing unfair incentives to ship jobs overseas. In our most recent actions, we are pushing further forward into the procedures laid out in this mechanism as you saw and our request for a panel in the san martin mine case. We are committed to using every enforcement tool at our disposal to safeguard workers rights, and across the board. In may, i was honored to invite uaw president sean fain, and aflcio secretarytreasurer frederick redman to present and speak with my trade minister colleagues at a firstever labor Discussion Forum at the trade ministerial we hosted in detroit. In order to understand why we are placing the interests and needs of our workers at the center of our trade policies, and in order to work with us to develop more inclusive, sustainable, and resilient economy in the asiapacific region, it is critical for our partners to meet and hear directly from the leaders of our worker organizations. Not just our company ceos. During our host, we are seizing the opportunity to demonstrate the power of inclusion as a means to promote Economic Opportunity and competition. This means lifting up Women Entrepreneurs and workers, helping Small Businesses grow, and unlocking Economic Opportunities for underrepresented parts of our population. And we are walking our talk. In San Francisco in november, a peck trade ministers will hear from and engage with Indigenous Leaders from around the asiapacific so that their voices can help shape our work. We are focused on empowering more workers and more communities to fly in the new global economy. That means trading smarter, more strategically, in pursuit of better outcomes, in a more inclusive prosperity across our societies. Our work with india is a good example. Since june, we have been able to achieve targeted Market Opportunity breakthroughs for American Farmers and producers, including four turkey, pecans, blueberries exports to india. This happened outside the usual trade agreement context that some see as the only trade success that counts. Let me assure you, our farmers and producers no that these wins cant. This is also why are major trade initiative in framework is not a traditional trade deal. It is our vision for how countries can collaborate to deliver real opportunities for our people, and collectively respond to the challenges we are facing today, without pitting our middle classes against each other. We need a different approach. Not trickledown economics and trade form. Not maximum tariff liberalization that contributed to the hollowing out of our industrial heartland. An approach that can lift all votes. One way economies collaborate on commonsense rules to prioritize resilience, and help smaller businesses compete and thrive without undercutting workers. Let me give you some real world examples. Many Small Businesses face burdensome paperbased custom procedures across the region that stymie experts and pose significant cost. We are working with partners to fix and improve that including through new automation and digital procedures that create uniformity in fairness and reduce cost. Whether it is the turkey farmers i met in North Carolina two weeks ago, or the artisans hand making craft chocolates in vietnam. This will be a tangible benefit that will help their businesses and their livelihoods. Another example is on transparency. When regulatory changes happen without sufficient notice and a chance for input, it creates uncertainty that makes it hard for companies to do business, especially the smaller ones. And for stakeholders to prepare and adapt. That is why we are working in the ipf trade pillar to improve information about regulatory actions. And make sure stakeholders can review and comment on goals that affect them. A third example is sustainable agriculture. This can play a big part in our cooperative efforts to address the Climate Crisis. We are working on rules to enable policy approaches that are grounded in science, evidence, and transparency, so that our farmers, ranchers, and producers can continue to lead in advancing Climate Smart approaches to agricultural production. Im glad to be teaming up with secretary of agriculture tom vilsack who has made the largest investment in Climate Smart Agricultural Research in u. S. History. Our work on streamlining customs, procedures, and transparency will be beneficial for smaller farmers who do not have the same capacity as big agro businesses to navigate complex rules. We have been driving an ambitious schedule, negotiating for the ipf. We have made significant progress in the span of one year. This is a sign that our partners also recognized the need to do things differently for their own resilience. We are currently also hard at work with the European Union to fundamentally shift the paradigm for trade and production in steel and aluminum. From a race to the bottom, to a race to the top. That means working together to create incentives for addressing nonmarket excess capacity in those sectors, and combating the Climate Crisis. With no shortage of ambition, we are aiming to tackle both at the same time, with a deal that we are calling, the global arrangement on steel and aluminum. We owe it to our workers and industries on both sides of the atlantic to curb the overflow of these products, enabled by countries using unfair policies and practices. This will help to send workers and their communities from the harmful effects they suffered for too long. And we want to incentivize cleaner production and trade in steel and aluminum to provide a pathway toward a more sustainable industrial future. In a nutshell, our goal is to incentivize fair competition and a race to the top for our planet. We have been working very hard on this over the last two years, and we are making progress. And i fully expect to be able to share that progress in the next weeks. I want to emphasize the Global Nature of this endeavor, and not just because the word is in the name. Our vision is for this tool to eventually be expanded to include other likeminded partners, and perhaps other sectors, because, as it turns out, we are all in this together. When it comes to crafting a fair and more equitable future for our people through trade policy, we must Work Together with countries in every region and state united in our cause. Our partnership with africa is also an important part of this vision. I will be heading to johannesburg at the end of the month, with many colleagues from this administration, congress, labor, and Civil Society and the private sector, to cohost the 20th United States Subsaharan Africa trade and Economic Cooperation forum with south african minister of trade, and my friend. The annual forum was a key part of the african growth and opportunity act when it was signed. And it remains an Important Program for the u. S. To support africas ongoing Regional Economic integration, and to empower more people to reap the benefits of economic growth. It has served as a core tool to help utilize africas incredible potential to increase investments and to create new jobs across the continent. The congressional authorization expires in two years. We are committed to working closely with congress on a Forward Vision that reflects changes on the continent and opportunities for improvements. In terms of improvements, consider utilization rates remain low. Lets discuss what changes might improve and raise those rates, particularly among smaller and less developed countries in africa. In terms of changes on the continent, consider that since agoa was renewed in 2015, the africa the african continent of freetrade area has come into being. Our program to support African Economic development should reflect this important milestone. We recognize that a successful new trade paradigm must reimagine trade and development as a partnership and a more equitable twoway street. When i traveled to nairobi in july to discuss the u. S. Kenya strategic trade and investment partnership, i was were in a minded i was reminded about how africas vibrancy and potential are extraordinary and undeniable. The continents success is linked to ours, and we need to rode together for our people, for our future. The last time my staff and i counted, we had logged more than 200,000 miles crisscrossing the globe, which now brings me back to our own hemisphere, and the Americas Partnership for economic prosperity. It is not just ustr working day and night to rewrite our new story on trade. The entire administration is so busy, we are pulling double duty, while i am in johannesburg for the agoa form, President Biden will be hosting Americas Partnership leaders in washington to do to continue discussion and art shared prosperity. The president believes trade can be a force for good, and so do i. The decisions we make today will directly affect the worlds future generations will shape and lead. It is on us, those of us doing this work now, to do trade in a new and better way. To provide Economic Security for the american people. To build a brighter tomorrow for our collective resiliency in prosperity, and to craft meaningful durable change one step at a time. It is an honor to serve in this administration. And work for a president that fully embraces this vision and challenge, and i look forward to talking about all of these issues and more with patrick shortly. Thank you. [applause] patrick 200,000 miles . That is impressive. Rep. Tai please dont consider the Carbon Footprint of that. Patrick im not. Im just really pleased that your 200,000 miles has managed to get you back here twice. We are proudly a small part of that extraordinary journey. I was taking furious notes as he spoke. There is so much to cover from labor rights, to supply chains, to clean energy. I really want to thank you for those invigorating and illuminating remarks. Im going to say i am incredibly envious now that i know sometime in the next few weeks, you will be heading back to that south african summer in johannesburg. We are going to touch a little bit on that later in the conversation, and look more indepth on what a goal renewal means on both sides of the atlantic. I want to start if i can with the 30,000 foot elevation of what this new industrial policy means. We know this administration across the board, from the president , the cabinet agencies have worked furiously to actualize this historic commitment to renewed industrial policy in the country, that has reinvigorated industries and cross the board. And has made a significant contribution to the states he mentioned before that have been hollowed out. Can you ground us in what that means for ensuing 21st century trade policy, through your vision . We appreciate some of the things we hear you say about building the middle out, moving past the status quo, what does that mean practically, as he think about americas role in the world of trade in these next decades . Rep. Tai that is a great question and a really important foundation, and foundational place to start from. One of the really important aspects of what we are doing now is we are doing so much, but nothing in what we are doing is really a traditional approach. I think it is really important to recognize this. Because i think it gets lost in the conversation sometimes, that if it is not the thing you have been doing over and over again, then what could you possibly be doing . If you look at the world around us, from the economy to geopolitics, to supply chains, and through the clockwork of how we are interconnected to each other across all areas, you just see significant amount of change that is happening. From our perspective, in order to be responsible and responsive. The trade policies we pursue have to reflect the changes and moreover, it is not just change for change sake. But that we are pursuing an affirmative vision for the kind of economy we want to have for the kind of economy that we want to lead in partnering with the rest of the world to push towards a version of america, america in the world, and the rest of the world, that is bright. Where you can see a long future ahead of you, and a sustainable path. And one where we feel like opportunities are rife and that they are not shallow. Bringing that back to where we are now, one is the recognition that there is change all around us, and we have to respond. The other is to recognize that we are not writing on a blank slate. That the current economy we have reflexive decades of trade policies but also economic policies that have led us to a certain set of outcomes. If you look at overall u. S. Gdp, we are the largest economy in the world still. We are extremely vibrant. You have to recognize that sector really, there is a significant unevenness. While parts of our economy are incredibly strong, powerful, growing rapidly, that other parts of our economy are eroded from may be where we have been in the past, but also where we would like to be, but certainly in terms of our industrial capacity, we do still make things here. Dont get me wrong. But i think we have a recognition that unless we start to do things differently, we will continue to see this trend of erosion in areas that we cannot afford to have erosion. Which focuses on rio witt on reinvigoration of the american academy, this embrace of what i will call a very unique type of American Industrial policy. Im really glad you have asked me about this. Because i think in the trade community, for a long time, industrial policy was something that you use to accuse people of doing a bad thing. Industrial policy was a bad thing. I think the traditional way we have talked about and thought about industrial policy, is it is a thing you did for yourself. To enrich yourself, empower yourself at the expense of others. I think the major change we are introducing into this conversation is yes, there are things we need to do for ourselves, there is a correction we have to accomplish through reassuring, for instance. Bringing back online critical level of manufacturing activity, for example. At the same time, we are interconnected with the rest of the world. This is not this is, in a way, part of what we are aiming for. But we want to be interconnected in a way that is positive. From trade policy perspective, the question is, can you pursue industrial policy, in a way where you can do it in a complementary fashion with other economies . Whether that is through supply chains, through coordinating defenses against unfair policies, we are looking for better ways of acknowledging the challenges that we have encountered, to ensure that we can safeguard the freedoms that we so value in our economic market based situation. Patrick you are absolutely right. For so long in our politics, industrial policy has been used as a kind of pejorative, as we move from the industrial economy, to the service economy, to now the information economy. A point you said about the supply chain begs another question about what we have learned in the trade space as a consequence of the crisis of the global pandemic, and what that did to our economies of trade. Ambassador tai this is another important touch point for us, and it is informing the way we are doing trade, where we feel we have new pathways, and areas where we are actively inviting our partners to help innovate with us. Our trade policies incentivized the pursuit of maximum cost efficiency. If you liberalize, the more trade you can have, the better off we all will be, the more peace there will be in the world. And the less things will cost. That come in a way, we see has led to what we call, in shorthand, the race to the bottom. The pursuit of lowestcost labor, lowest cost compliance, and this kind of arbitrage. The result is we had a period of time of great efficiency, very low cost. But the other cost not accounted for was the risk of breakage, and fragility. I think the pandemic is such an important experience. It is and we all experienced. And it is a situation where we saw the pursuit of lowestcost has allowed for significant concentration of production in supply, in certain places in the world. And that when those places are also the ones in a pandemic, that lockdown first, that we are all stuck with Public Health consequences, National Security consequences across the board, economic consequences. What we are trying to do on supply chains is really think through from ustrs perspective, how can we harness the power of the tools that we have two incentivize firms to make decisions where they are not just solving for efficiency, they are also solving for resilience. That is one of the most important issues that we have been focused on across the ministration. But certainly one that ustr and one where we are looking for partnership at the u. S. Congress, and our trading partners, to come up with more resilient arrangements to allow us to withstand shocks that we know are going to come, even if we cant predict what they are going to look like. Patrick thank you, ambassador. As you expound on the resistance do we have a mic problem . That was a smooth handoff. As you found out the resistance to the race to the bottom, cant help but note you mentioned my friend, the uaw, twice in your remarks. They are in the midst of a critical make or break strike right now against the big three automakers. I just wonder, in the context of industrial policy, and we all appreciate that the uaw was really critical for the growth and the resilience of the middle class in america. I wonder how you are thinking, broadly, at a time when workers are increasingly using this notion of collective power and collective expression to raise benefits and wages, not just in the auto industry, how you are thinking about u. S. Trade policy and terms of the president s goals to strengthen the platform for workers . And the part two of that question, because you have noted resilience in transitions, i wonder given the specificity of the concerns of the uaw around a Climate Transition in their industry, how that plays into trade negotiations as well . Ambassador tai this is a great question. How are we incorporating the viewpoints of workers and placing their interests at the center of our trade policies in our approach . There are a number of ways. One is we expand out the table for trade policy discussions and considerations, and we make sure our friends from labor are there, along with our friends from business who have been there for decades. You learn a lot by expanding that table. And i think the participants at the table learn a lot from each other as well. In our trade negotiations, for instance, the labor provisions and environmental provisions have gone handinhand, together, in our trade policy practice for two decades now. Even further, if you go all the way back to the nafta. And you see the push for incorporating those disciplines into the trade agreements. The labor provisions themselves are incredibly important. But the other significant, i guess, observation i would make an learning that i have, is that workers interest in our trade work is not just limited to the labor provisions. To your example of the summer of labor and worker environment, first of all, i will quote the president to say, the middle class built america, and its unions helped build the middle class. I will also note the job numbers that came out last friday, which were incredibly strong. Once again, surprising everybody, even entrance of estimates. The official estimates were for job growth, but at a smaller scale than we saw. What is going on . Patrick nowhere near that 336,000 jobs. Ambassador tai thats right. What is going on in our own economy has been unpredictable. I think that is unnerving. But there are a lot of good things happening in our economy. It is also showing the strength of the labor market. At this point, in particular, what i would say is whether it is the uaw, and we are following the news and progress very closely, or the hollywood strike, one thing you should see as a through line between these two is the centrality of the Technology Development in both of these dynamics. I would just highlight also all of the different provisions of what we do on trade, and how we think about workers equities, that digital piece in particular, the piece that reflects the Technological Advancements and its interplay with our economy, is also one where workers interests are deeply embedded. And one where we really need to push ourselves to think more broadly, more extensively, make sure that we get this right. And that we bring a significant amount of wisdom to how we approach those issues. Patrick im going to circle back to my part two of the question, on climate and things like that. When i raised china later in this conversation. I noted in your remarks that you mentioned the pioneering work that you and your colleagues are engaged in in india, which is outside of a traditional trade agreement. That absolutely centers resilience in the middle class on both sides of the tray table. I wonder if you can give us more detail on how that deal is structured, whether we may see it replicated elsewhere. I will also note that this is by suspending some wto disputes. I wonder if you might be able to explain that as well. Ambassador tai i would be delighted to. I think in the case of india, we started this administration knowing this is an important economic relationship. Where we have been really stymied over years, across a ministrations, in terms of trying to harness all the ways in which we feel like we have alignment into some kind of economic collaboration. And it has been very hard. What was interesting for me, and i hope he does not mind me saying this, my first conversation with a congressman from india was over zoom, early days in our administration, and i thought i would ask him because i was curious. And here i had the indian congressman on the line, why it was india with why india chose to withdraw from that, and right at the do or die moment, they decided no, we will take a pass on this. As he does, he gave me a very direct answer, which is, we did the economic calculations, and we saw it was not going to be a good deal for us. That it would exacerbate the trade deficit they had. With the other big economy in the region being china. And that they did not see a lot of upside. I thought, that is the kind of analytical approach. If i can understand what india is trying to accomplish, and i think youre right, with the largest population in the world, it is absolutely at the top of indias mind in terms of its trade policies and economic policies. From my perspective, look at the trade tools we have. We have brought cases against india and they have brought cases against us. The seven disputes we just buried the hatchet on, our they are old disputes. Where is the upside, where can we find opportunity . It really required us to think outside the box. I think in terms of burying the hatchet on these disputes, we also were able to open up some market opportunities. I think we will continue to push ourselves also because of this moment of alignment between new delhi and washington that is incumbent on us to figure out how we can make opportunities. It is actually extremely exciting, the progress we have made in two and a half years. Patrick it seems so radical to be talking about compromise concession and diplomacy. Congratulations on that progress. There are so many questions i have. But since you raised china in the context of india strategic, thinking about their relationship with the u. S. And the west, i will not even ask a specific question. I will keep it brief to say, what on earth is exactly our trade policy with china now in this delicate moment we find ourselves in . And i hope in your response, ambassador, you will bring in notions of what it means to cooperate on climate. Ambassador tai great. Let me have the very broad question. I think i will reciprocate by saying it is really important for us through trade to continue to pursue a policy of correction and rebalancing in terms of our relationship with china on trade. At the same time, it is really incumbent on us to approach that project with rationality and sobriety. I think you will see across the board from our administration a very sober rhetoric that attaches to how we talk about china. That is intentional. And i think, at the same time, we recognize that china is the second largest economy in the world. Cant ignore it. Cant pretend it is not there. And also, we cant divorce china economically. How do we also try to make this relationship work . And i think on climate, that should be in an area where our interests are aligned come in terms of, we all have next generations who need to and who deserve a bright future. And a long future ahead of them. And i think that is an area that i am hopeful that will be able to make progress on with china, and frankly, with the rest of the world as well. Patrick the last time we were fortunate enough to have you in this space, you did say very pointedly that you thought we had to use trade policy in order to orient us all toward a greener outcome in the world. How does a worker centered trade policy do that . Is it possible to harmonize the two . I wonder if maybe the example of mexico might be lifted up in the context here with otto. Ambassador tai great. There are these twin mandates we have. One is to place workers at the center of our trade policies. In terms of climate, that is also for our workers and our people. There are many different angles on this. Yes, i think addressing the Climate Crisis is important for its own sake. But also, i think it is really important for the sake of our people and their futures. And more specifically, it is really important for our workers and our workforce, as we are evolving our technologies and our indices industries, to be able to ensure there are still middleclass jobs for workers in these new industries, is a critical piece of sustainability. Different kind, not green sustainability, but policy sustainability. I think what we are seeing play out in the autoworker conversations around their contracts really highlights this particular intersection of two policy necessities. In terms of our work with mexico, on the usmca, and the Rapid Response mechanism, i think it is not an accident that 90 of those cases have been in the auto sector. I think that is a sector that has been completely transformed by this trilateral economic relationship across north america. And it is an area where the pressures of the economic integration, coupled with what had been very longstanding suppression of Worker Rights in mexico, and also, i would say lower levels of compliance and standards with respect to environment, have led to an erosion of standards for ourselves. This work that we are doing in the usmca to raise standards in mexico is also about raising standards for us, and ensuring that the huge changes happening in this indices industry, again, happen in a way that is aligned with a positive outcome as much as possible. Patrick ambassador, i always admire the enthusiasm you have to dive into the most complex issues. We have a few minutes before we have to open things up to the reporters who are here and the rest of our audience. Speaking of complex issues, i would be remiss in not raising the african growth and opportunity act, which i am passionate about. I had the privilege of working on the renegotiation of the 2014 agreement that gave an unprecedented 10 year onramp to the 46 african nations benefiting from agoa. It is up for renewal at the end of next year. Congress has the pen on this. You mentioned the changes that have occurred on the african continent, in the way of realized trade amongst african nations. Even with that, we know we are at a moment where africa, with a population tipping over one billion, has the same if not slightly smaller gdp of all of france, which only has 66 Million People in it. There is radical underutilization of agoa on the continent. I wonder what changes you would like to see to agoa in this moment of renewal that could expand utilization and increase opportunity on both sides of the atlantic . I want those south african avocados to come here. Ambassador tai i have not had a south african avocados. I look forward to it. This is a really wonderful question. We do have about two years left in this authorization of agoa. Im glad you were very careful to state the fact that congress has the pen. Just as when we are nominated for positions, you always say, if confirmed. What i want to do is be very respectful of the fact that it is congress job whether to reauthorize and when to reauthorize. Of course, as an agoa renewal process comes up in this time, we are committed to fully supporting and partnering with congress to ensure that there is as robust and successful a process as we can put together. To your point about low rates of utilization, i think there is one aspect of agoa that remains powerful, which is it is our foundational program, and our expression of economic support for the african continent, the countries of Subsaharan Africa. But i think it is really important, as usual, to test the success and effectiveness of our program. And there are certainly beneficiaries of agoa who have utilized the program to great effect. But at the same time, we see low utilization rates. I think right there is an obvious area of improvement. I want to get into the specifics in terms of how, but i think it is absolutely the right question. Which is, how can we improve utilization . How can we make this a more Successful Program for supporting our partners in africa . The afc fta, i think that what is important to recognize in that endeavor is africas own effort to integrate itself with itself. And i think one of the most incredible examples shared with me last year at the African Leaders summit, from africa, told me, oftentimes, to fly from one country in africa to another, that is not even that far away, because of the commercial flight patterns, it is easier to fly out of africa into europe and then fly back in. There are actually not that many direct connecting flights inside of africa itself. I think then, you realize in terms of our support for development in africa, which i am so convinced is critical to strong and vibrant future for all of us in the world, have to take into account this incredibly Important Initiative for the countries in africa and think about how agoa can reflect and support that in to give effort. The last point i will make on agoa,s for those countries that have actually done quite well in terms of the economic developing curve, that are rising up into middle income status, there is a graduation process out of agoa. There is kind of a cliff, that your success basically leads you out of the program, and into a vacuum. Patrick a nice problem to have. Ambassador tai it is a nice problem to have come but from my perspective, if we are looking at the mediumterm to longterm partnership with africa, we also should start thinking about articulating what happens at that point. From my perspective, that is the point at which, actually, more interesting to way reciprocal arrangements can come into being. Patrick akin to the one that you are in conversations with kenya about now. Ambassador tai that is very much the spirit of which we are carrying out our kenya conversation. Patrick fantastic. Thank you for the thoughtful response. Lets open this up. I think we have some questions from reporters online, and possibly some in the room. And others in the audience. If the reporters could please raise your hand if you have a question first . And please say your name and affiliation before the question. Thank you. Reporter International Trade today. Nice to see you. I wanted to ask about the global arrangement on steel. You said that you are expecting to share progress in the next weeks. Do you think it is possible there will have to be a partial solution, at this point, and then a commitment to continue to work on the full ambition of both country the nonmarket production and the green production, and how that enter plays with trade . Ambassador tai let me take a step back on what we are trying to do with the usau global arrangement. I talked about it in my remarks. I want to acknowledge how fundamentally paradigm shifting the vision is that we are pursuing. And actually, how difficult a task it is that we have set out to accomplish with the europeans. It really is a paradigm flip. From a race to the bottom, to a race to the top. The u. S. And the eu coming together, putting our Market Forces together to drive through trade. Cleaner production, cleaner trade, and these carbon intensive industries, but then also to defend against and nonmarket excess capacity. And then to drive incentives for fair trade and fair production. It is a really big remit that we have. The second thing that i will talk about is that it is really a very technical chap technically challenging thing we are proposing to do. On that, i will say there are probably as many, if not more, trade lawyers in brussels as there are in washington. If there are two partners that could come together to solve a really difficult task, it should be two of us. The third thing i will note is i think what we are asking the eu to do on this, i feel confident that they are committed to doing it, and they recognize the need to do it. But i think that on some level, it is also very, very difficult for brussels on an emotional level. Because what we are doing is quite different. As i note all the time, change is really hard. And on this, i have had the opportunity to reflect with my team on the record of u. S. Eu trade negotiations and engagements. I think despite our best efforts, that our record has been, i would say, sometimes we seem like starcrossed lovers. That it seems like we should be able to get the thing across the line. And maybe the most obvious recent point is on the transatlantic trade and investment partnership, that despite the high level political commitment, that that was something that ultimately we were not able to get across the line. From my perspective, you never give up. Trade and economic collaboration is something you necessarily have to do with your partners. This is a long way of saying, lets see. Hang with us. I guess we have got exactly three weeks to get to our deadline. And i think that i will just say, as of right now, as hard a task as this has been, i am extremely proud of our u. S. Negotiators. And i will say that we remain extremely committed to our partners and working with them. Patrick i have never heard a romeo and juliet metaphor used for trade before. We are going to start using that, ambassador. Please. Reporter thank you for your time. My name is garrett bender, i represent a small u. S. Business, currently who are using the tariff exclusions. I was wondering if you might be able to provide insight on what happens to these exclusions, 2024. Ambassador tai you are talking about the china 301 tariffs in particular . We are in the midst of a review of the tariffs. That is statutorily required, and have been engaging in this for the last year. We had a Comment Period that closed earlier this year. We are still in the process of a very robust interagency deliberation. Obviously, this is an area where the comments we have solicited from the public are extremely important to us. And those are, i want to assure you, very, very important and a core part of the deliberations. This is also an area where we hear very robustly from our partners in congress who have been great champions for their constituents. I am hopeful that we will be able to conclude the process by the end of the year. I had, i think, i guess about 10 days ago, been asked questions about what happens with a government shutdown. The answer is we go to triage mode and the pace of what we do may be impacted across the board. We are working very, very hard for the next period of time. Take my estimate with a grain of salt. I think we have time for one online question. Patrick one online question. There is a question from robert kuttner. About pressure coming from Big Tech Companies in the European Unions proconsumer regulations as trade disk imitation. He asked, do you have a position on this and might we expect news on this anytime soon . Patrick i suspect you have heard this question before. Ambassador tai [laughter] occasionally. Occasionally this topic comes up. It is an important topic. Let me start out by stating a couple facts. One is that the European Union has an incredible superpower as a political entity. They are very good at regulating, in this sense, that they are able to get regulations going through very complex processes. I think my partners in brussels have some of the hardest jobs in terms of navigating between 27 member states. But there regulations often have extraterritorial reach, that causes all of us to sit up and have to respond. On their regulations in the digital arena, i recognize, and this is through a lot of engagement with our partners in brussels, that they are very concerned about the rights of european citizens with respect to privacy, for instance. The opportunity and the economic vibrancy in this arena of the economy to allow for opportunities for a new entrance, and for a new entrance to grow, startups to grow into small and then medium sides, to compete with the very largest. I also recognize that in terms of this industry, the largest players, and they are really large, or almost all american companies. Are almost all american companies. I think that is where the tension comes up. In the trade policy conversation, our guiding disciplines are around discrimination. Are you treating Foreign Companies the same way you are treating your own . Are you treating this Foreign Company the same way you are treating that Foreign Company . That is the traditional trade conversation. I think as it crosses over into regulatory efforts that impact these Big Technology companies, we have to really be cognizant that measures that may look like they have a discriminatory effect, may or not be advanced with a discriminatory intent. I think from a trade perspective, that is the additional nuance we have to bring to our engagement with our partners around their intentions. And then also around the impacts. The last thing i will say on this is in this area, and i will bring it back to climate as well, in these two areas, digital and climate, what we are able to do in trade negotiations and trade policy is limited by where the american policy consensus is represented. And i want to really put a fine point, and this is truly out of deference and respect, on the u. S. Congress. That in areas where the u. S. Congress continues to debate and has not settled regulatory questions in digital and also on climate, that there is going to be a limit to what we can do in trade in the international sphere. I know that my partners in Congress Love having us lead, in all things, especially in trade. And i would just say, that in some areas, that we cannot lead until Congress Speaks and acts. And i would say on digital and on climate, those are two incredibly important areas, where we cannot afford to sit on the sidelines where i will be very, very eager to work with our congress. Patrick we certainly cannot have a passive congress on these issues. Ambassador, if you dont mind, i dont want to end on that regulatory note, in that note about congress. In addition to your brilliant technical mastery, you also the ability to motivate with a sense of what is possible. I will note that in the upcoming cap 28, we have the first ever trade day at a cop. Can you pop us to understand, as we close out this conversation, what it means to bring trade leaders like yourself into ministerial conversation with those who are leading on climate . That is a space of agency. Ambassador tai yes. This is a really interesting development. Which is the highlighting of trade at cop. I will tell you, at the last Ministerial Conference of the wto which was in geneva last june, that there was a lot of energy on Environment Sustainability and climate at the wto. I think that has only grown since last june. And i think it will continue to grow. I think we all know that climate solutions, in order to be effective, have to be things that we are all participating in. And that the trade piece of this is central. I think it is interesting to have from cop, building out like a bridge toward the trade solutions from cop. And i would say that just know from the trade conversation, there is a building out on climate. I do expect that in these next weeks and months and years, and hope that these two conversations converge. Im looking forward to helping to facilitate that happening. Patrick we know you well. Thank you for this conversation. Thank you for your commitment. And thank you for your broad service. Over 200,000 miles. Thank you. Ambassador tai thank you. [applause] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org]