Trump admin set to announce Indo-Pacific trade initiatives
The Trump administration is set to roll out major policy initiatives to address the infrastructural and energy needs of the strategic IndoPacific region where India is seen as one of the anchor countries for greater connectivity and trade.
The move comes nine months after the administration openly spoke against “predatory economic policies of an Asian giant” that threatened to eat into sovereignty of countries in the region, which has now emerged as a critical engine for growth.
President Donald Trump has lined up top Cabinet members - Secretary of State Mike Pompeo, Commerce Secretary Wilbur Ross and Energy Secretary Rick Perry - at the US Chamber of Commerce which is hosting the first Indo-Pacific Business Forum meeting on Monday.
The forum will introduce the economic and commercial elements of the US’ Indo-Pacific strategy. It will include participation from senior administration officials, private sector and officials representing Indo-Pacific nations.
Asian economies are now projected to create 50 per cent of global Gross Domestic Product in coming decades.
“To realise that potential, countries of the Indo-Pacific will need to attract nearly $26 trillion in capital from the private sector and not the government to fund their energy and infrastructure needs,” Nisha Desai Biswal, president of the US India Business Council (USIBC) said.
She said American companies would be a critical player in both investing the capital and building the technology and infrastructure the region requires. “It’s an event that brings together business, private sector and many of our partners from the region to kind of have a conversation about how we boost engagement investment across the Indo Pacific,” Biswal, told PTI ahead of the first Forum.
In addition to Pompeo, Ross and Perry envisioning the administration’s policies for the region, other administration officials include USAID Administrator Mark Green, OPIC President Ray Washburne, Acting ExIm Bank Chairman Jeffrey Gerrish, and US Chamber President and CEO Thomas J Donohue.
“All would be making announcements or sharing key investment opportunities that they are advancing in the Indo-Pacific region,” Desai said.
Indian Ambassador to the US Navtej Singh Sarna is among the few diplomats from the region who have been invited to speak during the event.
Senator Mark Warner, co-chair of the Senate India Caucus, would provide a legislator perspective on how it’s
important for the US public and private sector to be engaged in the IndoPacific region.
“What we hope that there will be a lot of outcomes that come from this Indo Pacific Business Forum,” said Biswal, who served as the assistant secretary of state for South and Central Asia in the second term of the Obama administration.
“The forum will highlight US government initiatives to advance economic engagement in the region, particularly on key sectors including energy and infrastructure and the digital economy,” State Department Spokesperson Heather Nauert said.
“The forum will also emphasise the importance of public-private partnerships, the benefits of transparency and good governance, and unlocking the power of markets for sustainable development, and the need for US collaboration with regional partners,” she said.
Immediately after the event, Pompeo would leave for Singapore to attend the ASEAN ministerial.
He will have an opportunity to engage with his counterparts in the region and be able to take the business strategy and the economic strategy for the Indo-Pacific that has been articulated in this event and be able to engage with his counterparts from the region to further have conversations and discuss next steps, Biswal said.
Responding to a question, the former State Department official asserted that the $26 trillion infrastructure gap across the Indo-Pacific region would come from the private sector and not from the government.
“It’s largely going to be how we leverage private investment into the region to build the infrastructure and the connectivity, whether it’s the energy infrastructure or the transport infrastructure, or the digital infrastructure where India is such a leader for the region,” Biswal said.
India is a critically important player in the entire scheme of things, she argued, noting that over the years it has emerged as a much more consequential actor in South east Asia.
“We really do see that India is one of the anchor countries in how we bring this whole region into greater connectivity and really boost a boost commerce and trade across the region.
“We also know that in many areas, including in the digital economy, India is a leader and a pioneer that has a lot of knowledge to share. We know that India is a very important market for the countries of Asia and we want to support that greater collaboration in the region,” she said.
The US has a strong interest in also supporting all of the trading connectivity and being part of it, she said, adding that American business, technology and capital has an important role to play.