U.S. Department of Commerce
Summary Readout of Deputy Secretary Don Graves’ Travel to Tokyo
On Wednesday, U.S. Deputy Secretary of Commerce Don Graves concluded his official visit to Japan to deepen two-way commerce, trade and investment ties with a focus on critical and emerging technologies, and his leadership of the U.S. Cybersecurity Business Development Mission to East Asia, accompanied by a delegation of 15 innovative U.S. cybersecurity companies to explore commercial opportunities in South Korea and Japan.
While in Tokyo, the Deputy Secretary held meetings with Japanese government officials, including Ministry of Economy, Trade and Industry (METI) Parliamentary Vice Minister Taku Ishii; Ministry of Internal Affairs and Communications Minister Junji Suzuki; Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) State Minister Konosuke Kokuba; and Japan Bank for International Cooperation Chairman Tadashi Maeda. The Deputy Secretary and his counterparts discussed cybersecurity best practices and private sector solutions, deeper collaboration on critical and emerging technologies, efforts to strengthen export controls enforcement, as well as successful completion of the Indo-Pacific Economic Framework for Prosperity and cooperation in third countries. In these engagements, he emphasized the enduring importance of the United States’ and Japan’s bilateral relationship for ensuring the collective economic and national security and a prosperous Indo-Pacific region.
The Deputy Secretary and the METI Parliamentary Vice Minister Ishii explored closer coordination in view of the new Commerce and Industry Ministers track launched at the U.S.-Japan-South Korea Trilateral Summit in August. In another meeting with the MLIT State Minister Kokuba the two discussed the upcoming U.S.-Japan Tourism Year 2024. In a sign of confidence that the water from the Fukushima Daiichi Nuclear Power Plant is safe and in accordance with international standards, the Vice Minister Ishii and the Deputy Secretary sampled food locally sourced from Fukushima.
The Deputy Secretary led a discussion with members of the Liberal Democratic Party of Japan allowing members of the U.S. Cybersecurity Business Development Mission Delegation to learn first-hand about Japan’s cybersecurity policy priorities. Members of the U.S. Cybersecurity Business Development Mission Delegation also met with Keidandren who introduced them to Japanese business representatives, where they discussed national security.
Deputy Secretary Graves concluded his trip with a policy speech at Temple University Japan, detailing the Department’s focus on critical and emerging technologies including semiconductors, clean technologies, biotechnologies, and cybersecurity. “A linchpin of these efforts,” he said, referring to the goals of a free, open, and prosperous Indo-Pacific and a strong partnership between the U.S. and Japan.
As part of his trip, Deputy Secretary Graves also visited Seoul, South Korea. Please click here to learn more.Leadership Don Graves Tags Indo-Pacific Economic Framework National Security Travel and Tourism
1 day 9 hours agoCheckout news
Biden-Harris Administration Announces CHIPS for America Funding Opportunity to Strengthen Semiconductor Supply Chains
As Part of Investing in America Agenda, Department of Commerce Outlines Application Process for Smaller Supply Chain Projects and Businesses to Access CHIPS Funds
Today, the U.S. Department of Commerce announced a funding opportunity for smaller supply chain projects and businesses to access CHIPS for America funds. As part of President Biden’s Investing in America agenda, the bipartisan CHIPS and Science Act includes incentives to strengthen supply chains, support smaller projects and businesses, and create good-paying jobs in local communities across the country.
The new funding opportunity is open to projects with capital investment below $300 million involving the construction, expansion, or modernization of commercial facilities in the United States for semiconductor materials and manufacturing equipment. These projects will produce the equipment, chemicals, gases, and other materials that are critical to manufacturing semiconductors in America. Suppliers are also strongly encouraged to apply for CHIPS incentives alongside other institutions from their regions to expand economic opportunity and competitiveness. Supply chain investments can help regions increase economic resilience, create new pathways to good jobs, and bring emerging technology innovation home to their communities. The funding opportunity builds upon the Department’s announcement in June to expand funding to larger supply chain projects, and the Biden-Harris Administration’s strategic vision to strengthen the semiconductor supply chain through CHIPS for America investments.
The investments made as part of this new funding opportunity will support three strategic objectives as outlined in our “Vision for Success”: (1) strengthen supply chain resilience, (2) advance U.S. technology leadership; and (3) support vibrant U.S. fab clusters with a reliable ecosystem of suppliers.
“The CHIPS and Science Act, a key piece of President Biden’s Investing in America agenda, provides our country the opportunity to strengthen domestic supply chains, create good jobs, protect our national security, and support long-term U.S. economic growth,” said Secretary of Commerce Gina Raimondo. “CHIPS for America is laser-focused on ensuring both our economic and national security by making smart investments up and down semiconductor supply chains that enable smaller suppliers and more American workers to help grow the U.S. semiconductor industry.”
This new funding opportunity features an application process designed to be accessible for smaller businesses and projects. The application process includes two phases:
- Concept Plan: Applicants will be asked to submit a concept plan describing how their proposed project addresses core strategic objectives, including U.S. economic and national security. Concept plans will be accepted between December 1, 2023, and February 1, 2024.
- Full Application: The Department of Commerce will review submitted concept plans and invite the most promising applicants that demonstrate how they advance program priorities to submit a full application for CHIPS incentives. The full application submission dates will be communicated to applicants individually upon notifying them of their advancement.
“The smaller supply chain projects enabled by this funding will play a crucial role in creating a sustainable U.S. semiconductor ecosystem, providing large chipmaking facilities with access to the equipment, materials, and supplies required to boost U.S. domestic manufacturing,” said Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio. “By investing up and down the supply chain, CHIPS for America will enable a diverse range of critical businesses to contribute to advancing U.S. technology leadership and fuel innovation for decades to come.”
“The President knows that smaller suppliers and the good jobs they support are vital to restoring and sustaining American leadership in semiconductors, and today’s announcement is an important step towards that goal,” said White House National Economic Council Director Lael Brainard.
This funding opportunity follows through on the CHIPS and Science Act’s requirement that the Department establish a program to incentivize investment in the construction, expansion, or modernization of commercial facilities in the U.S. for the semiconductor supply chain, including materials and manufacturing equipment.
In June, the Department of Commerce expanded its first funding opportunity released in February 2023 to accept applications for larger-scale supply chain projects, which includes the construction, expansion, or modernization of semiconductor materials and manufacturing equipment facilities where total capital investment equals or exceeds $300 million.
The Department continues to work to ensure CHIPS funding attracts private capital across the semiconductor ecosystem and to use taxpayer dollars as efficiently and effectively as possible. Since announcing the first funding opportunity in February, the Department of Commerce has received over 500 statements of interest and over 100 pre- and full applications from companies seeking to build semiconductor projects across 42 states, demonstrating widespread enthusiasm from the private sector to continue investing in America. Today’s funding opportunity also maintains the Department’s emphasis on building the construction and facility workforce that will support resilient domestic supply chains, including through partnerships with labor, educational institutions, workforce development organizations, and others.
About CHIPS for America
CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for the R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.Bureaus and Offices National Institute of Standards and Technology Leadership Gina M. Raimondo Tags Secretary Gina Raimondo National Security Semiconductor Industry
1 day 9 hours agoCheckout news
U.S. Department of Commerce Announces New Methane Abatement Handbook in Coordination with U.S. Department of State
Today, the U.S. Department of Commerce announced the publication of U.S. Government-Funded Methane Abatement Handbook for Policymakers.
In support of the Global Methane Pledge and Clean EDGE (Enhancing Development and Growth through Energy) Asia initiative, the Department of Commerce’s Commercial Law Development Program (CLDP) Chief Counsel Stephen Gardner and the Department of State’s Bureau of Energy Resources (ENR) Assistant Secretary Geoffrey R. Pyatt jointly announce the launch of the Methane Abatement for Oil and Gas: Handbook for Policymakers. This Handbook, developed by CLDP and sponsored by ENR, is a guide to empower legislators, ministries, regulators, and national oil company officials to adopt and enforce legal instruments that will rapidly and effectively reduce methane emissions from the oil and gas sector. The Handbook was created in close collaboration with experts from U.S. government agencies, foreign governments, multi-lateral organizations, the oil and gas industry, civil society, and academia.
Methane is a powerful short-lived greenhouse gas. Rapidly reducing methane emissions is essential to limit warming to 1.5 degrees Celsius and reduce the risks of crossing dangerous climate tipping points. The oil and gas sector has the greatest share of cost-effective and technically feasible methane mitigation potential. The International Energy Agency estimates that over 70 percent of methane emissions can be cut in the oil and gas sector with available technology, and nearly half of methane emissions avoided at no net cost.
The Departments of Commerce and State encourage government policymakers and regulators to make use of the Handbook and apply its recommendations as they pursue their climate and energy goals. The Handbook is a starting point for understanding the policies, rules, and best practices that countries can adopt and implement to effectively abate methane from oil and gas production.
CLDP and ENR will also leverage this guide to expand foreign technical assistance programming, supporting countries who seek advisory services on methane abatement. The English version of the Handbook, along with forthcoming versions of the Handbook in other languages, and other supporting resources on methane abatement in oil and gas, can be found online here: Methane Abatement Resources | Commercial Law Development Program (doc.gov)Tags Climate Change
3 days 8 hours agoCheckout news
Remarks by Deputy Secretary of Commerce Don Graves at Temple University Japan
Thank you, Dean, for that kind introduction.
Good morning, everyone! Ohayou Gozaimasu
I am honored to be here at Temple University Japan – the first campus of an American university in Japan. This campus and the thousands of students who have passed through here are a testament to the kind of U.S.-Japan partnership between the United States and Japan that is as important today as it was four decades ago.
First and foremost, I would like to express my sincere condolences to the Temple University community here and in the United States for the tragic loss of Acting President Joanne Epps. Over nearly four decades at Temple, Joanne Epps distinguished herself as a scholar, professor, and administrator, with a deep and abiding commitment to the university and its students, social justice, and equality.
This trip holds deep meaning for me personally. In 1860, my three-times great-grandfather, James Wormley, a small businessman in Washington, DC, hosted and catered for the first Japanese Commission to visit the United States. My mission to Japan this week -- 163 years later -- comes at a time when the U.S.-Japan relationship has never been stronger and more important, not only for our two countries but for the world.
UNPRECEDENTED GLOBAL CHALLENGES AND A HIGH-STAKES TECHNOLOGY COMPETITION
Today, we face unprecedented global challenges. The COVID pandemic, the existential threat of climate change, the Russian war of aggression in Ukraine, and the rise of authoritarian regimes, including here in the Indo-Pacific Region, all pose grave threats to the rules-based international economic order that the United States, Japan, and like-minded democracies have diligently built and sacrificed for over generations.
Exacerbating these challenges is a high-stakes, must-win technology competition between democracies and authoritarian adversaries.
Who leads on critical and emerging technologies – computing technologies, such as chips, cyber, and AI; climate and clean technologies; and biotechnologies – will profoundly shape the international economic order for generations to come.
Will that world economy continue to evolve towards one based on democratic norms and standards, fair and mutually beneficial trade, and innovation, entrepreneurship, and opportunity?
Will your generation be able to count on the free flow of information, data privacy, and an open internet?
Will we move towards concerted climate action and green innovation in both developed and developing countries?
These are the questions that we must address and answer in the affirmative.
U.S. COMMERCE DEPARTMENT’S APPROACH
The Biden-Harris Administration recognized these challenges early – they are nowhere more pressing than here in the Indo-Pacific Region.
That is why the United States is undertaking unprecedented bilateral, plurilateral, and multilateral efforts with partners in the Region to realize the vision of an Indo-Pacific that is, to quote the President Biden, “open, connected, prosperous, resilience, and secure.”
To this end, the Administration and the Commerce Department are doing three things:
- First, we are making strategic domestic investments while also deepening commercial ties with our allies in critical and emerging technologies that will have an outsized impact on our economies.
- Second, we are taking steps to protect our national security by fostering trusted tech ecosystems, combatting economic coercion, and preventing malign actors from using sensitive goods and technologies to undermine our national security and the security of our partners and allies.
- Third, we are expanding our engagement, along with our private sectors, in the Global South to offer our partners more attractive infrastructure alternatives to help meet their most pressing economic needs.
Let me say a bit more about these efforts – and how the U.S.-Japan partnership is indispensable in ensuring success not only for the U.S. and Japan, but for the world.
BUILDING OUR INDUSTRIAL CAPABILITIES
It starts with what I believe is the industrial renaissance that we are helping to catalyze in the United States with a focus on critical and emerging technologies.
For decades, across parties and administrations in the United States, policymakers took a hands-off approach to economic policy. As a result, too many Americans were left behind – Jobs were lost, our industrial base was hollowed out, real wage growth declined, inequality increased, and our workforce was left disconnected from opportunities.
In the meantime, our competitors and adversaries moved aggressively to establish their tech advantage – further eroding ours. They sought to use their advantage in ways that threaten the free flow of information, exacerbate IP theft, and utilize disinformation to undermine our open democratic, market systems.
We are now turning the page. As many of you know, the U.S. passed landmark legislation such as the American Rescue Plan, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act. Through these programs, the United States is making historic investments in manufacturing, R&D, and workforce development across the U.S. in critical and emerging technologies, and economic clusters, that will have outsized impacts for years to come. Specifically, I’m talking about computing technologies, such as chips, AI, and quantum; clean and climate technologies, from renewable to nuclear energy and carbon capture; as well as biotechnologies.
Let me underscore – our investments in rebuilding our industrial base in the U.S. does not mean we are going it alone. When the U.S. builds tech capabilities, it enables us to be better innovation partners with allies, with leading technology powers such as Japan and Korea. That is why, in lockstep with our industrial investments, we are also deepening our commercial and economic partnerships with allies like Japan as well as Korea to foster two-way trade and investments in key sectors. Here are some examples of what we’re doing:
- In 2021, we launched the Japan-U.S. Commercial and Industrial Partnership, or JUCIP, with Japan’s Ministry of Economy, Trade, and Industry (METI) to deepen government-government and private sector collaboration around semiconductor supply chain resilience and the digital economy.
- Just last month, President Biden, Prime Minister Kishida, and President Yoon held a successful, first-of-its-kind, Trilateral Summit just last month at Camp David. There, they committed to a range of initiatives between our three countries to deepen economic and technology cooperation, such as a supply chain early warning system pilot on priority products and materials; collaboration between our respective national laboratories; and regular meetings between our commerce and industry ministers.
- This week, I am leading cybersecurity trade mission with 15 world-class American cybersecurity companies that are seeking to develop partnerships both here and in Korea.
These engagements are paying off in terms of two-way trade and investment. For instance, Japanese and Korean companies are also increasing their investments in critical and emerging technologies in the American heartland, including in my home state of Ohio. As a result of the efforts of the Ohio State Economic Development Center, Honda and LG Energy Solution have made a combined commitment to invest $4.2 billion to build an electric vehicle (EV) battery plant and retool existing Honda plants to support the automotive supply chain and create over 2500 jobs.
PROTECTING OUR NATIONAL SECURITY AND COUNTERING ECONOMIC COERCION
Even as we invest in and innovate new technologies, we must be vigilant in countering malign actors and adversaries that seek to undermine our collective economic security, which is more connected than ever to our national security.
Specifically, we need to ensure that our tech innovation ecosystems are trusted, secure, and protected those who engage in IP theft, undermine data privacy, and use and abuse technologies to further their military mobilization and modernization and while suppressing democratic norms.
Here, too, the U.S. and Japan are undertaking bilateral and multilateral efforts. As a concrete example, we have broken new ground on export control partnerships. Nowhere is this better illustrated than the measures we imposed against Russia following their invasion of Ukraine.
As an outcome of the recent Trilateral Summit between our leaders, the U.S., Japan, and Korea are deepening these partnerships. All three agreed to work on a Disruptive Technology Protection Enforcement Exchange that will strengthen technology protection measures and information sharing across our enforcement agencies. All three countries are also committed to working together to counter DPRK cyber activities and foreign information manipulation.
It is important to remember that protecting our national security also requires that we counter thwart economic coercion – by this, I mean efforts by authoritarian adversaries, particularly the PRC, to weaponize trade and investment to impose costs on countries that don’t bend to their will. The United States strongly supports Japan’s leadership in the G7, along with Australia, Canada, New Zealand, and the United Kingdom, to issue a “Joint Declaration Against Trade-Related Economic Coercion and Non-Market Policies and Practices.”
These are just some examples of increasingly important economic tools we are using, along with our allies, to protect our economic and national security. To explain these tools and what we’re doing as part of the Administration’s efforts, I am launching the first-of-its-kind Commerce Department National Security Strategy later this year.
WORKING TOGETHER WITH PARTNERS IN THE GLOBAL SOUTH
Let me turn, finally, to a basic fact: that supply chains for critical and emerging tech are inherently global in nature.
From packaging and testing for semiconductors to critical minerals that provide essential inputs to chips, EVs, and other technologies, our success requires that we forge trusted technology partnerships not only with each other, but with like-minded partners all over the world.
That’s why United States and Japan are taking steps, along with other G7 nations and their private sectors, to help partners in the Global South meet their economic and sustainable development goals.
Two years ago, President Biden, along with other G7 leaders, launched the Partnership for Global Infrastructure (PGI) seeking to mobilize $600 billion in public and private investments by 2027, in infrastructure critical to the energy transition, supply chain resilience; digital economy, economic corridors; and sustainable health systems. The goal is to offer partner countries better alternatives to meet their infrastructure needs – e.g., trusted commercial partnerships, infrastructure financing, as well as high quality technology, goods, and services.
At the G7 Summit in Hiroshima in May, our leaders reaffirmed their commitment to PGI and highlighted the considerable progress that has been made with a number of innovative projects around the world, such as:
- the United States’ partnership with Indonesia as a first mover in ASEAN on small modular reactor deployment as part of the Just Energy Transition Partnership,
- Japan’s support for an 88MW wind power plant in Vietnam and two 500MW onshore wind projects in Egypt, and
- The United States’ commitment, recently announced by President Bident at the first-ever C5+1 Summit, to provide Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan attractive infrastructure alternatives for development of an economic and energy corridor along the Trans-Caspian Trade Route, ‘the Middle Corridor’. Japan is a key partner in these efforts.
Closer to home in the Indo-Pacific, the United States, Japan, and Korea are working 11 other partner countries in the Region on the Indo-Pacific Economic Framework for Prosperity (IPEF), a cornerstone of our efforts to promote innovation and growth across the region in clean, digital, and other technologies with protections against the scourge of corruption.
Japan, along with Korea and other partners, have been instrumental in ensuring the progress of IPEF negotiations, including the conclusion in May of this year of the first-of-its-kind Supply Chain Agreement among the 14 partners. We are looking to conclude similar agreements on the clean economy, including the energy transition, and on fair economy principles, such as the fight against corruption and efficient tax measures.
These new economic alliances and tech partnerships are spearheading our efforts to ensure a free, open, and prosperous Indo-Pacific and rules-based international order. A linchpin of these efforts is strong partnership between the U.S. and Japan.
My belief is that we are putting in place the architecture for decades of innovation and outsized productivity growth – so that your generation continues to enjoy the blessing of shared prosperity, freedom, and opportunity. Success will ultimately depend on you – your ingenuity, creativity, hard work, and willingness to push the frontiers of what’s possible and beyond in the critical and emerging technologies that are profoundly changing the world we live in.Leadership Don Graves Tags National Security Indo-Pacific Economic Framework Artificial Intelligence Climate Change Entrepreneurship
3 days 9 hours agoCheckout news
Secretary Raimondo Appoints Sean McDevitt to FirstNet Authority Board
Today, U.S. Secretary of Commerce Gina Raimondo announced the appointment of Sean McDevitt, a partner with international management consulting firm Arthur D. Little (ADL) to serve on the Board of the First Responder Network Authority (FirstNet Authority).
Mr. McDevitt has been a member of ADL’s telecommunications, internet, technology and private equity practice areas since 2017. He brings 30 years of private sector experience specializing in business development, business expansion, leadership, account management, and client project delivery for telecommunications and technology sectors. Prior to that, Mr. McDevitt served in a variety of executive positions in the global communications, technology and digital media industries.
“It is with great pleasure that I announce the selection of Mr. Sean McDevitt to serve on the FirstNet Authority Board,” said Secretary Raimondo. “He brings decades of experience in telecommunications and technology to this important oversight role as we enter the next phase in FirstNet’s development.”
Mr. McDevitt will serve as one of 12 non-permanent members selected by the Department of Commerce; the remaining three permanent seats are occupied by the Attorney General of the United States, the Secretary of Homeland Security, and the Director of the Office of Management and Budget. The Board oversees activities to ensure that the FirstNet Authority and AT&T—its commercial partner—develop, build, and operate a nationwide public safety broadband network that will best equip first responders to save lives and protect U.S. communities.
“Congratulations to Sean McDevitt and welcome to the FirstNet team,” said Alan Davidson, Assistant Secretary of Commerce for Communications and Information and NTIA Administrator. “He will bring valuable insights on the investments necessary to help FirstNet thrive in the era of 5G and beyond.”
The First Responder Network Authority is an independent entity within the Department of Commerce’s National Telecommunications and Information Administration (NTIA). The FirstNet Authority’s mission is to ensure the building, deployment, and operation of the nationwide public safety broadband network that equips first responders to save lives and protect U.S. communities. In March 2017, the Department of Commerce and FirstNet announced a partnership with AT&T to build and operate the first responder network. It is delivering the technologies and infrastructure that public safety relies on for day-to-day operations, disaster response and recovery, and securing of large events.
The Middle Class Tax Relief and Job Creation Act of 2012 created the FirstNet Authority, and Congress directed that it be governed by a 15-person Board, with the Attorney General of the United States, the Secretary of Homeland Security, and the Director of the Office of Management and Budget named as permanent Board members. Congress charged the Secretary of Commerce with selecting the remaining 12 non-permanent members.Bureaus and Offices National Telecommunications and Information Administration First Responder Network Authority Leadership Gina M. Raimondo Tags Secretary Gina Raimondo Public Safety
4 days 4 hours agoCheckout news
Readout of Deputy Secretary Don Graves’ Meeting with Minister for Trade, Industry and Energy of the Republic of Korea Bang Moon-kyu
In Seoul, Deputy Secretary of Commerce Don Graves met with Minister of Trade, Industry and Energy of the Republic of Korea Bang Moon-kyu. Deputy Secretary Graves congratulated Minister Bang on his recent appointment and reaffirmed the Commerce Department’s commitment to deepening commercial, trade, and investment linkages between the United States and Korea in critical and emerging technologies, including semiconductors, cyber, and cloud. The Deputy Secretary and the Minister discussed boosting joint efforts to safeguard critical infrastructure and tech innovation ecosystems from threats to our national and economic security. They agreed to continue collaboration on enforcing export controls, strengthening IP protections, and countering economic coercion. The Deputy Secretary also welcomed the Korean government’s continued leadership on encouraging partners to swiftly conclude negotiations of the Indo-Pacific Economic Framework for Prosperity.Bureaus and Offices International Trade Administration Leadership Don Graves Tags National Security Cybersecurity Awareness Month Indo-Pacific Economic Framework
1 week 1 day agoCheckout news
Summary Readout of Deputy Secretary Don Graves Travel to Seoul
Today, Deputy Secretary of Commerce Don Graves concluded his official travel to Seoul, South Korea, where he has been leading a 15-company U.S. Cybersecurity Business Development delegation in a series of meetings with senior Korean government officials and U.S. and Korean private sector and industry association leaders to deepen two-way commerce, trade, and investment while addressing national security threats to both countries.
On Thursday, September 21, Deputy Secretary Graves delivered remarks at the U.S.-Korea Technology Cooperation Forum. While at the Forum he reaffirmed the Department of Commerce’s commitment to deepening the U.S.-South Korea partnership in critical and emerging technologies that will have an outsized impact on their economies.
Additionally, the Deputy Secretary met with senior officials from the South Korean government, including Ministry of Trade, Industry, and Energy (MOTIE) Minister Moon-kyu Bang, MOTIE Trade Minister Dukgeun Ahn, MOTIE First Vice Minister Youngjin Jang, and Ministry of Science and ICT Second Vice Minister Yun Kyu Park. In those meetings, the Deputy Security reaffirmed the Department’s commitment to government-to-government collaboration and engagement with the U.S. and Korean business community – including on semiconductor supply chain resilience, cybersecurity, export control enforcement, successful completion of the Indo-Pacific Economic Framework for Prosperity (IPEF), and follow-up in the Trilateral Summit.
The Deputy Secretary held several meetings with U.S. and South Korean private sector representatives, including a meeting with the American Chamber of Commerce in Korea, a roundtable discussion with Korean clean tech investors in the United States, and a meeting with the Korean Semiconductor Industry Association. In these engagements, the Deputy Secretary heard from American and Korean businesses on issues affecting their respective sectors and ways the Commerce Department can help increase commercial ties through enhanced bilateral and regional cooperation.
On Saturday, September 23, Deputy Secretary Graves and the trade mission delegation will travel to Tokyo, Japan, for the final mission stop. Please click here to learn more.Bureaus and Offices International Trade Administration Leadership Don Graves Tags Indo-Pacific Economic Framework Export Controls Cybersecurity
1 week 1 day agoCheckout news
Remarks by Deputy Secretary of Commerce Don Graves at the U.S.-Korea Cybersecurity Cooperation Forum
Thank you, Andrew, for the kind introduction, and thank you, Second Vice Minister Park, for being here today and for co-hosting this important forum.
The Ministry of Science and ICT is one of the U.S. Department of Commerce’s primary Korean partners, cooperating and consulting with us in a range of areas, from cybersecurity standards to semiconductor R&D, telecommunications, and the digital economy.
I also want to recognize the executives of 15 top U.S. cybersecurity firms that have joined our Department of Commerce Cybersecurity Trade Mission to Korea. I would like to ask the delegation members to briefly stand so everyone here can see who you are. Thank you.
I know the delegation is interested in learning more about the cybersecurity market in Korea, opportunities to enter the market and pursue contracts, identify business partners, and perhaps establish operations here to sell, service, and meet the needs of customers in a range of sectors.
Please take the time today to meet the delegation members – they and their companies, and their products and services, are very impressive, and they are eager to meet you.
Today’s topic – cybersecurity – is timely and important to both the U.S. and Korea’s national security; the economic security of our private sectors and workers; and the livelihoods, security, and privacy of our citizens, their data, and their finances.
For many individuals and small businesses, the costs of paying for cybersecurity can seem too high. But the consequences that come from being hacked and losing meaningful, sensitive content can be catastrophic. For a small business, this content could be critical to their operations – like the taking and fulfilling orders – and to the salaries and livelihoods of their workers.
For large companies, particularly those that invest millions or even billions of dollars in R&D on the next blockbuster drug or electric battery, competitors, criminals, and foreign adversaries may seek out cyber vulnerabilities to steal, exploit, and use to gain market dominance.
And for governments and their national security agencies, which typically require the most sophisticated cybersecurity protocols to protect lives, diplomatic communications, and defense secrets, the weakest link can instantly threaten the health, unity, and security of the country.
From seaports, airports, and power generation and distribution systems to water filtration plants, the security of our infrastructure is what we require to function from day to day. But many of these systems rely on outdated operating systems, software, and security protocols. And because our infrastructure is interconnected, one company’s security can be undermined by another company’s weaker security protocols down the grid, or perhaps upstream.
When President Yoon was in Washington in April, he and President Biden signed the U.S.–Korea Strategic Cybersecurity Cooperation Framework. The Framework recognizes these risks and commits us to talking, as we are doing here, and sharing, identifying, and jointly addressing cyberthreats that put not only the United States and Korea at risk, but other partners as well.
The Department of Commerce is also eager to share the Cybersecurity Framework 2.0 draft from our National Institute of Standards and Technology, or NIST, which is replacing an earlier, 2018 version. The NIST Framework provides standards, guidelines, and best practices to help industry, government agencies, and other organizations reduce their cybersecurity risks.
While created by the U.S. government, its approaches and recommendations can equally help foreign governments and companies alike.
Its scope has expanded — explicitly — from protecting critical infrastructure, such as hospitals and power plants, to providing cybersecurity for all organizations regardless of type or size.
And in our post-COVID world, it now includes added emphasis on Cybersecurity Supply Chain Risk Management, highlighting the importance of risks associated with the distributed and interconnected nature of product and service supply chains.
I look forward to discussing the NIST Cybersecurity Framework 2.0 with my Korean counterparts during my visit to see how we can share and learn from our respective national cybersecurity strategies, implementation plans, and standards.
As hackers and criminals know, no national strategy is perfect – a point they freely exploit. But by learning from, and leveraging our respective best practices, from cryptography standards to identity verification, we can collectively strengthen both national and global cybersecurity postures that will benefit governments, the private sector, and citizens alike.
As you continue to discuss how we can work more closely together – both government to government and private sector to private sector – to address cybersecurity, remember: while cybersecurity provides a competitive advantage to those companies and institutions that best employ the best cybersecurity practices to deter, monitor, identify, and eliminate threats, we all benefit when cyberthreats and criminals can no longer hold any individual, company, or government hostage.
The global threats of today require us to redouble our efforts to share, cooperate, research, and explore current and emerging cyber threats together, recognizing that our collective efforts will be more effective in defeating both the cyberthreats of today, and those threatening our tomorrow, than our individual work.
I apologize in advance that following my remarks and those of Second Vice Minister Park, we will need to excuse ourselves for a bilateral meeting to discuss how we can increase our cooperation to collectively strengthen both national and global cybersecurity postures.
As the group here continues its discussion, let’s all consider the reality that cyberthreats cross borders – and so, too, must our willingness to partner with one another to enhance our respective cybersecurity capabilities and keep our systems resistant and resilient to cyberthreats.
Let’s take advantage of the Cybersecurity Business Development Mission that I am leading to gain a better understanding of, and to consider how best to integrate, the world-class cybersecurity products and services that our respective private sectors offer as a means of strengthening American and Korean capabilities.
Thank you for being here today, and I look forward to meeting many of you at the reception that is being held for our Cybersecurity Trade Delegation at the end of the program.Bureaus and Offices International Trade Administration Tags Trade Mission
1 week 1 day agoCheckout news
Biden-Harris Administration Announces Final National Security Guardrails for CHIPS for America Incentives Program
Guardrails Finalized by the Department of Commerce Will Ensure Manufacturing and Technology Investments Under the CHIPS Act Bolster Technological and National Security of America, Allies, and Partners
The U.S. Department of Commerce today released the final rule implementing the national security guardrails of the bipartisan CHIPS and Science Act. The rule elaborates on two core provisions of the statute: the first, prohibiting CHIPS funds recipients from expanding material semiconductor manufacturing capacity in foreign countries of concern for ten years; and the second, restricting recipients from certain joint research or technology licensing efforts with foreign entities of concern.
The rule will help ensure CHIPS investments enhance global supply chain resilience in coordination with allies and partners. The CHIPS and Science Act is part of President Biden’s Investing in America agenda for unleashing a manufacturing and innovation boom, driving U.S. competitiveness, and strengthening economic and national security.
This final rule follows careful consideration of comments submitted in response to the proposed rule, which was published in March 2023. The Department reviewed and incorporated suggestions from stakeholders, including representatives of the domestic and foreign semiconductor industry, academia, labor organizations, trade associations, and others in developing this rule. The rule offers details and definitions on national security measures applicable to the CHIPS Incentives Program, including limiting funding recipients from expanding semiconductor manufacturing in foreign countries of concern.
“One of the Biden-Harris Administration’s top priorities – made possible by the CHIPS and Science Act – is to expand the technological leadership of the U.S. and our allies and partners. These guardrails will protect our national security and help the United States stay ahead for decades to come,” said Secretary of Commerce Gina Raimondo. “CHIPS for America is fundamentally a national security initiative and these guardrails will help ensure companies receiving U.S. Government funds do not undermine our national security as we continue to coordinate with our allies and partners to strengthen global supply chains and enhance our collective security.”
The bipartisan CHIPS and Science Act included clear guardrails to strengthen national security. The statute:
- Prohibits recipients of CHIPS incentives funds from using the funds to construct, modify, or improve a semiconductor facility outside of the United States;
- Restricts recipients of CHIPS incentives funds from investing in most semiconductor manufacturing in foreign countries of concern for 10 years after the date of award; and,
- Limits recipients of CHIPS incentives funds from engaging in certain joint research or technology licensing efforts with a foreign entity of concern that relates to a technology or product that raises national security concerns.
- If these guardrails are violated, the Department can claw back the entire federal financial assistance award.
Today’s final rule provides details on and definitions for these national security guardrails. In particular, the rule:
- Establishes Standards to Restrict Expansion of Advanced Facilities in Foreign Countries of Concern: The statute prohibits the material expansion of semiconductor manufacturing capacity for leading-edge and advanced facilities in foreign countries of concern for 10 years from the date of award. In addition to front-end and back-end processes, the rule clarifies that wafer production is included within the definition of semiconductor manufacturing. The final rule ties expanded semiconductor manufacturing capacity to the addition of cleanroom or other physical space and defines material expansion as increasing a facility’s production capacity by more than five percent. This threshold is intended to capture even modest transactions to expand manufacturing capacity but allows funding recipients to maintain their existing facilities through normal course-of-business equipment upgrades and efficiency improvements.
- Limits the Expansion of Legacy Facilities in Foreign Countries of Concern: The statute places limits on the expansion and new construction of legacy facilities in foreign countries of concern. The rule provides details regarding this restriction, prohibiting recipients from adding new cleanroom space or production lines that result in expanding a facility’s production capacity beyond 10 percent. The rule establishes a notification process for recipients that have plans to expand legacy chip facilities so the Department can confirm compliance with the national security guardrails.
- Classifies Semiconductors as Critical to National Security: While the statute allows companies to expand production of legacy chips in foreign countries of concern in limited circumstances, today’s rule classifies a list of semiconductors as critical to national security, thereby subjecting them to tighter restrictions. This designation covers chips that have unique properties that are critical to U.S. national security needs, including current-generation and mature-node chips used for quantum computing, in radiation-intensive environments, and for other specialized military capabilities. This list of semiconductor chips was developed in consultation with the Department of Defense and U.S. Intelligence Community.
- Details Restrictions on Joint Research and Technology Licensing Efforts with Foreign Entities of Concern: The statute restricts covered entities from engaging in joint research or technology licensing with a foreign entity of concern that relates to a technology or product that raises national security concerns. Foreign entities of concern include those owned or controlled by foreign countries of concern, those on the Bureau of Industry and Security (BIS) Entity List and Treasury Department’s Chinese Military-Industrial Complex Companies (NS-CMIC) list, and others as outlined in the statute. This restriction does not apply to several types of engagements which are necessary to existing operations and do not threaten national security, such as activities related to international standards, involving patent licensing, and to enable funding recipients to utilize foundry and packaging services.
International Coordination with U.S Partners and Allies
The Department appreciates the extensive input and cooperation from U.S. partners and allies while developing this rule. The Department will continue coordinating with international allies and partners to support a healthy global semiconductor ecosystem that drives innovation and is resilient to cybersecurity threats, natural disasters, pandemics, geopolitical conflict, and more. As semiconductors and technologies continue to evolve, the United States will work with allies and partners and develop coordinated strategies to protect our collective economic and national security.
As the Department has been implementing the CHIPS and Science Act, it has remained in close contact with U.S. partners and allies, including through engagements with the Republic of Korea, Japan, India, and the United Kingdom, and through the Indo-Pacific Economic Framework, European Union-United States Trade and Technology Council, and North American Semiconductor Conference. The Department will continue coordinating closely with U.S. partners and allies to advance these shared goals, advance our collective security, and strengthen global supply chains.
About CHIPS for America
CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.Bureaus and Offices National Institute of Standards and Technology Leadership Gina M. Raimondo Tags Secretary Gina Raimondo National Security
1 week 1 day agoCheckout news
Remarks by Deputy Secretary of Commerce Don Graves at the U.S. Advanced Industry and Technology Corporation Forum in Seoul, Korea
Thank you Vice Minister Jang and President Min for the warm welcome.
I’m delighted to be here at this year’s Korea-U.S. Advanced Industry and Technology Cooperation Forum in Seoul and to join this impressive gathering of government and private sector leaders, technologists, entrepreneurs, researchers, and innovators. I am looking forward to witnessing the signing of MOUs between KIAT, Korean institutions such as the Global Robot Cluster and Korean Institution of Machinery and Minerals, and American institutions including Yale University, MassRobotics, and the Manufacturing Alliance of Korean Engineers and Researcher.
This forum and these MOUs are emblematic of the deep collaboration—between our public, private, and research institutions—that will allow the United States and Korea to push the technology frontier even faster and further together, not only as global tech leaders, but as countries that share a deep and abiding commitment to democratic values and norms.
Earlier this year in Washington, Presidents Biden and Yoon commemorated 70 years of our security alliance, which has been a backbone for peace and prosperity in the region for generations. Along with our security alliance, over these seven decades, we have also evolved a unique economic relationship that is marked by Korea’s momentous rise as a global tech innovator and leader; a key partner to the U.S. in mutually beneficial trade; a growing source of Foreign Direct Investment in the U.S.; and an indispensable ally in safeguarding our international economic order, which today is increasingly under threat.
As of last year, Korea is the United States’ 6th largest overall trading partner and our 12th largest source of foreign direct investment, with $74.6 billion invested.
In 2021, U.S. affiliates of majority Korean-owned firms employed more than 88,000 U.S. workers in communities across our nation, invested $2 billion in research and development, and supported $8.3 billion in U.S. goods exports.
It is impossible to walk down the street in the United States without seeing a product that is somehow linked to a Korean brand or technology. Korean products and technologies—from smart phones to automobiles to heavy equipment and electric batteries, from chips to robotics—are inextricably linked with millions of Americans’ daily lives.
It is worth reflecting on how the next 70 years of the U.S.-Korea partnership can be as impactful as the past 70. How will we navigate the global challenges and risks we face, and rising threats to our national and economic security together?
To answer this question, we must recognize that the United States, Korea, Japan--which I’ll visit next week--,and other democracies, together, are in a high-stakes, must-win technology competition, especially with authoritarian adversaries.
Who leads on critical and emerging technologies – computing tech, such as chips, cyber, and AI; climate and clean technologies; and biotechnologies – will profoundly shape:
- whether the world economy continues to evolve towards one based on democratic norms and standards, the protection of workers and human rights, and fair and mutually beneficial trade;
- whether entrepreneurs, including in the U.S. and Korea, can continue to innovate technologies without fear of or the use and abuse of sensitive technologies by malign actors in ways that undermine our national security;
- whether we will continue to benefit from the free flow of information, data privacy, an open internet – the lifeblood of the modern digital economy;
- whether countries in this region and around the world are able to pursue their national priorities without the threat of economic coercion, or as we’ve seen in Ukraine, even worse – a war of aggression.
The Biden-Harris Administration recognized this early – along with the importance of ensuring the technological advantage of democracies to preserve the rules-based economic order that has been built diligently over generations.
That is why the United States, under its Indo-Pacific Strategy, is undertaking unprecedented bilateral, plurilateral, and multilateral efforts with our allies to realize the vision of an Indo-Pacific that is, to quote the President Biden, “open, connected, prosperous, resilient, and secure.”
And the U.S.-Korea economic, commercial, and technology partnership is a linchpin of these efforts.
That is why Secretary Raimondo and I, and our team at the Commerce Department, are laser-focused on deepening commercial, trade, and investment linkages between the U.S. and Korea in critical and emerging technologies including cybersecurity, and by boosting our joint efforts to safeguard our critical infrastructure and tech innovation ecosystems from threats to our national and economic security.
The U.S.-Korea partnership is pivotal to two important aspects of our economic and technology cooperation agenda:
- our strategic investments in computing, clean energy, and other critical and emerging technologies; and
- economic measures we are taking with allies to protect our collective national and economy security from malign actors.
Let me explain.
The United States has turned the page on several decades of a largely hands-off approach to economic policy that favored deregulation and tax cuts rather than investing in our industries and workers. As we did that, our adversaries and competitors took steps to erode our tech advantage and that of our allies by making strategic investments in their industries, tech base, and workers.
Under President Biden’s leadership, the U.S. passed landmark legislation such as the American Rescue Plan, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act. And these programs are catalyzing what is the beginning of an industrial renaissance in the United States in critical and emerging technologies – across computing technologies, such as chips, AI, and quantum; clean and climate technologies, from renewable to nuclear energy and carbon capture; as well as space and bio technologies.
Let me be clear about one thing – investing in our techno-industrial base in the U.S. does not mean we are going it alone. When the U.S. builds tech capabilities, it enables both the government and the private sector to be better innovation partners with allies, in particular leading technology powers such as Korea, by expanding opportunities for two-way commerce and investment in critical technologies, joint research, collaborations on tech commercialization, and supply chain development, to name a few.
That is why industrial strategy investments, in our view, go hand-in-hand with deepening government and commercial partnerships between the U.S. and Korea in these areas.
- Over a year ago, Commerce and MOTIE launched the U.S.-Korea Supply Chain and Commercial Dialogue with active working groups on additive manufacturing and supply chain resilience, including our CHIPS program; digital economy; and dual use export controls (more on that in a moment).
- The goal is to ensure that American and Korean industry stakeholders understand the state of play in key technology areas such as semiconductors, additive manufacturing, digital, healthcare and health technology, and robotics – all two-way commercial and investment opportunities.
- Similarly, the U.S. - Korea Semiconductor Forum we will hold this year will serve to connect interested public and private research institutions to strengthen our semiconductor collaboration. And potential follow-on work from the Minerals Security Partnership, where the United States, Korea, and others are collaborating, will help to strengthen the supply of critical minerals used in semiconductor manufacturing.
- In early November, the U.S.-Korea Space Industry Forum will draw on U.S. space companies and Korean counterparts to identify commercial space opportunities, including on cybersecurity and supply chain resilience for space systems.
- And the recent U.S.-Korea-Japan Trilateral Summit is another example of we are doing together on critical and emerging technologies, including establishing a supply chain early warning system pilot with a focus on priority products and materials such as critical minerals and rechargeable batteries; collaboration between our respective national laboratories; and more regularized, annual meetings between our commerce and industry ministers.
Our industrial strategy investments, combined with our bilateral commercial partnerships, are ultimately about the commercial deals that allow the U.S. and Korea to advance in critical and emerging technologies that will have an outsized impact on our economies. And the he private sector investing in what I call an industrial renaissance. Since the start of the Biden Administration alone, Korean firms, along with joint venture partners, announced nearly $110 billion in U.S. investments, expected to create over 70,000 jobs – the vast majority of these in semiconductors and electric vehicles. Here are just three examples:
- Hyundai and LG Energy Solutions’ $4.3 billion battery cell JV that will generate 3000 jobs in Bryan County, Georgia;
- Samsung’s $21b investment in a semiconductor factory in Taylor, Texas; and
- a Ford and SK JV that will invest $5.6 billion in a 43 Gwh battery plant in Tennessee.
This is our industrial strategy working for the United States and our Korean partners. And this is just the beginning.
Even as we invest in and innovate new technologies, however, we face malign actors and adversaries that seek to undermine our economic security, as well as our national security.
We are taking steps to protect our national security and the collective economic security of our allies, including Korea, by fostering trusted and secure tech ecosystems in which our companies and researchers can innovate without the threat from malign actors of rampant IP theft, cyberattacks on critical infrastructure, and the use and abuse of sensitive goods and technology exports to further military mobilization and modernization.
That’s why the cyber trade mission I’m leading here in Seoul today, with 15 world-class American companies, is critically important. U.S. companies, I believe, can be trusted partners of choice for Korean institutions seeking to protect their critical infrastructure, including from cyber-intrusion.
Another concrete example of new economic tools we’re using with our allies is related to our export controls partnerships. Nowhere is this better illustrated than the measures we imposed against Russia following their unwarranted invasion of Ukraine. In record time, we built a coalition of 38 like-minded partners from Europe to the Indo-Pacific – all of whom agreed that Russia’s actions represented a global security threat that could not go unanswered. Korea is a key partner on this front.
Additionally, following the recent Trilateral Summit, the U.S., Korea, and Japan will work on a Disruptive Technology Protection Enforcement Exchange to deepen cooperation on technology protection measures and information sharing across our respective enforcement agencies. Our efforts will include measures to counter DPRK cyber activities and foreign information manipulation.
These are just some examples of economic statecraft tools we are augmenting to address the very real national security threats that the United States, Korea, and our allies are seeing in the economic sphere. Our approach to using these tools will be explained in a first-of-its-kind Commerce Department National Security Strategy, which I am launching later this year.
It bears mentioning, for this audience, that partner countries across the Indo-Pacific play an important role in technology supply chains – for instance, from packaging and testing for semiconductors to critical minerals that provide essential inputs to chips, EVs, and other technologies.
That is why the United States, Japan, Korea, and 11 other partner countries in the Region are negotiating the Indo-Pacific Economic Framework for Prosperity (IPEF)—a cornerstone of our efforts to harness innovation — especially transformations in the clean energy, digital, and technology sectors — while fortifying our economies against a range of threats, from supply chain chokepoints to corruption to tax havens.
Korea has been instrumental in ensuring the progress of IPEF negotiations, including the announcement in May of this year that 14 IPEF partners concluded negotiations of a first-of-its-kind Supply Chain Agreement aimed at promoting the resiliency, diversification, transparency, and fairness across key supply chains that are critical to our economies.
We are looking to conclude an agreement on the clean economy, with the goal of creating economic opportunities across our countries via the energy transition, as well as an agreement to promote fair economy principles through the fight against corruption, efficient tax measures, and improvements in business environment across the region.
The range and reach of the U.S.-Korea economic partnership is significant and growing, and in my view, will have a profound impact beyond our borders and on the international economic order. But that will depend not only on our respective governments, but ultimately, on the ingenuity, creativity, and commercial acumen of those of you gathered here at this Forum as you innovate, create, and through our thriving bilateral economic partnership, profit and benefit together.
With that, I wish you a productive Forum and I look forward to the signing of the MOUs.Bureaus and Offices International Trade Administration Leadership Don Graves Tags Indo-Pacific Economic Framework
1 week 2 days agoCheckout news
Readout of Secretary Raimondo’s Meeting with Prime Minister of Vietnam Pham Minh Chinh
Today, Secretary Raimondo met with Prime Minister of Vietnam Pham Minh Chinh during his visit to the United States and participation in the 78th session of the United Nations General Assembly. During their meeting, Secretary Raimondo and Prime Minister Chinh discussed the outcomes of President Biden’s visit to Vietnam earlier this month, including the new U.S.-Vietnam Comprehensive Strategic Partnership. The Secretary spoke about how the U.S. and Vietnam can further strengthen bilateral and regional economic engagement, including through the conclusion of negotiations on high-standard economic cooperation agreements for Pillars III and IV of the Indo-Pacific Economic Framework for Prosperity (IPEF) and APEC. The Secretary also thanked the Prime Minister for Vietnam’s leadership resulting in the first-of-its-kind proposed IPEF Supply Chain Agreement.Bureaus and Offices International Trade Administration Leadership Gina M. Raimondo Tags Secretary Gina Raimondo Indo-Pacific Economic Framework
1 week 4 days agoCheckout news
Readout of Secretary Raimondo’s Meeting with Minister of Industry and Trade Nguyen Hong Dien
Today, Secretary Raimondo met with Minister of Industry and Trade of Vietnam Nguyen Hong Dien. The two discussed the unprecedented elevation of the U.S.-Vietnam bilateral relationship to a Comprehensive Strategic Partnership, which will facilitate expanded commercial cooperation across a variety of sectors. The Secretary emphasized a key element of delivering on commitments following President Biden’s recent visit will be to swiftly conclude negotiations on high-standard agreements for Pillars III and IV of the Indo-Pacific Economic Framework for Prosperity (IPEF). The two also reaffirmed their respective commitments to making progress as quickly as possible to build on the IPEF Ministers announcement in May on the substantial conclusion of the proposed IPEF Supply Chain Agreement.Bureaus and Offices International Trade Administration Leadership Gina M. Raimondo Tags Secretary Gina Raimondo Indo-Pacific Economic Framework Indo Pacific
1 week 4 days agoCheckout news
Joint U.S. Department of Commerce and USTR Readout of Fifth Indo-Pacific Economic Framework Negotiating Round in Thailand
BANGKOK — The U.S. Department of Commerce and the Office of the United States Trade Representative (USTR) participated in the fifth in-person negotiating round for the Indo-Pacific Economic Framework for Prosperity (IPEF) in Bangkok, Thailand, from September 10-16, 2023.
The U.S. delegation was co-led by Sharon H. Yuan, U.S. Department of Commerce Counselor and IPEF Pillars II-IV Chief Negotiator, and Sarah Ellerman, Assistant United States Trade Representative for Southeast Asia and the Pacific and IPEF Pillar I Chief Negotiator.
Building on the discussions that took place during the fourth negotiating round in Busan, South Korea, in July 2023, the IPEF partners continued to make progress on negotiations towards high-standard outcomes under Pillars I (Trade), III (Clean Economy), and IV (Fair Economy). Officials also continued discussions on the next steps for the proposed IPEF Supply Chain Agreement (Pillar II) following the substantial conclusion of negotiations in May and public release of the text on September 7.
Prior to the fifth negotiating round in Bangkok, the U.S. Department of Commerce and USTR jointly held a virtual IPEF listening session on August 24 in Washington, D.C. This listening session presented an opportunity for stakeholders to provide thoughts and comments on the IPEF negotiations. The U.S. government IPEF chief negotiators, as well as other representatives from USTR and the Department of Commerce, attended this event. A second in-person listening session was held with the Government of the Kingdom of Thailand on September 14 for interested stakeholders.
During the negotiating round, the U.S. Department of Commerce and USTR also briefed congressional committee staff and cleared advisors in attendance.
In keeping with our strong commitment to transparency in the development and implementation of the Biden-Harris Administration’s trade agenda, the U.S. Department of Commerce and USTR will continue to provide regular updates and briefings to both stakeholders and Congress as negotiations progress.
The United States will continue to engage with IPEF partners and will participate in additional in-person negotiating rounds in 2023. Additional details regarding the next in-person negotiating round will be announced at a later date.
IPEF Negotiating Rounds and Ministerial Meetings
On June 29, 2023, U.S. Secretary of Commerce Gina Raimondo hosted an IPEF virtual ministerial meeting, where the IPEF partners reaffirmed their shared commitment to ambitious outcomes in Pillars III (Clean Economy) and IV (Fair Economy) and discussed the importance of delivering concrete benefits, including technical assistance and capacity building to support future implementation of the high standard commitments envisioned under the two pillars.
The IPEF partners met in Detroit, Michigan, for a ministerial meeting on May 27, during which they recognized the progress made in Pillars I (Trade), III (Clean Economy) and IV (Fair Economy), and announced the substantial conclusion of negotiations on a landmark IPEF Supply Chain Agreement under Pillar II.
The first negotiating round was held in Brisbane, Australia, from December 10-12, 2022, followed by a special negotiating round on Pillars II-IV in New Delhi, India, from February 8-11, 2023. The second negotiating round was held in Bali, Indonesia, from March 13-19, 2023, followed by the third negotiating round in Singapore from May 8-15, 2023, and the fourth negotiating round in Busan, South Korea, from July 9-15, 2023. For more information and updates on IPEF, please visit www.commerce.gov/ipef.Bureaus and Offices International Trade Administration Tags Indo-Pacific Economic Framework
1 week 5 days agoCheckout news
Deputy Secretary Graves to Lead Cybersecurity Trade Mission to the Republic of Korea and Japan
U.S. Deputy Secretary of Commerce Don Graves will lead 15 American companies on a Cybersecurity Trade Mission to the Republic of Korea and Japan, from September 20 – 26, 2023. Deputy Secretary Graves’ travel follows President Biden’s Trilateral Summit with President Yoon of Korea and Prime Minister Kishida of Japan. While in Korea and Japan, Deputy Secretary Graves looks forward to deepening commercial ties with the U.S. in cybersecurity and other critical emerging technologies by strengthening joint efforts to safeguard our critical infrastructure and tech ecosystems from those who seek to undermine our national and economic security. His visit will further the Administration’s efforts to promote a free, open, and prosperous Indo-Pacific Region.Leadership Don Graves Tags Indo Pacific
2 weeks 2 days agoCheckout news
Readout of Secretary Raimondo’s Meeting with President of Guyana Dr. Irfaan Ali
Today, Secretary of Commerce Gina Raimondo met President of Guyana Dr. Irfaan Ali to discuss opportunities to deepen the U.S.-Guyana bilateral commercial relationship. During the meeting, Secretary Raimondo formally announced that the Department of Commerce opened a U.S. Commercial Service office within the U.S. Embassy in Georgetown. This new office will provide on-the-ground support that can help promote inclusive economic growth. The two also discussed Commerce Department programming and technical support, such as the Commercial Law Development Program, that can support the development of Guyana’s business climate and help create a favorable environment for increased trade and investment between our nations.Bureaus and Offices International Trade Administration
2 weeks 3 days agoCheckout news
Readout of Secretary Raimondo's Call with Japan’s Minister of Economy, Trade, and Industry Nishimura Yasutoshi
Today, Secretary of Commerce Gina Raimondo spoke with Japan’s Minister of Economy, Trade and Industry (METI) Nishimura Yasutoshi to discuss key bilateral trade issues and updates, including the agenda for the next Ministerial meeting of the U.S.-Japan Economic Policy Consultative Committee (Economic “2+2”) and next steps for bringing the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy and Fair Economy Pillars negotiations to a successful conclusion.
During the call, Secretary Raimondo underscored the importance of continuing efforts to strengthen cooperation on semiconductors and coordination to enhance supply chain resilience. The Secretary and the Minister also discussed the new Commerce and Industry Ministers track that was jointly announced by the United States, Japan, and the Republic of Korea during the Camp David Trilateral Summit hosted by President Biden on August 18.Bureaus and Offices International Trade Administration Leadership Gina M. Raimondo Tags Secretary Gina Raimondo Indo Pacific Indo-Pacific Economic Framework
2 weeks 5 days agoCheckout news
U.S. Department of Commerce Publishes Text of Landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement
The U.S. Department of Commerce today made publicly available the text of the proposed landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement, marking another major milestone and accomplishment for the Biden-Harris Administration’s innovative approach to economic engagement. Following the release of the final text of the Agreement, the United States and partner countries will conduct their own domestic processes to prepare for signature of the Agreement.
“The IPEF Supply Chain Agreement further delivers on President Biden’s commitment to revitalize American manufacturing and strengthen the critical supply chains our workers, companies, and consumers rely on,” said Secretary of Commerce Gina Raimondo. “By working toward finalization of this monumental Agreement, the United States is taking an important step forward to fortify bonds with our partners throughout the Indo-Pacific. Working in lockstep, we will be prepared to best address our shared economic challenges together.”
The proposed Supply Chain Agreement is designed to enable IPEF partners to work together collaboratively to make supply chains more resilient, efficient, transparent, diversified, secure, and inclusive, including through information exchange, sharing of best practices, business matchmaking, collective response to disruptions, and supporting labor rights. This approach aims to create a commercial environment among IPEF partners that will make our supply chains more competitive and decrease costs for Americans. It is also designed to facilitate a reliable supply of critical goods during a time of crisis, working to ensure that American companies have access to key inputs and that American workers will not face unnecessary furloughs and work stoppages due to supply chain disruptions.
The IPEF partners continued collaboration would be accomplished through the formal establishment of three supply chain bodies.
Senior government officials from IPEF partners would form an IPEF Supply Chain Council responsible for overseeing collaboration on supply chain issues across the Indo-Pacific. This work would center around “critical sectors” and “key goods” identified by each partner as essential to its national security, public health and safety, or the prevention of widespread economic disruptions. The Council, envisioned to meet at least annually, would collaborate and organize teams of experts to assess capabilities, map supply chains, identify bottlenecks, and explore options for diversification of concentrated sources of supply for sectors and goods of shared interest.
To help prepare for and respond to future supply chain disruptions, IPEF partners also would form an IPEF Supply Chain Crisis Response Network. Partners would establish an emergency communications channel to facilitate information exchange and provide a platform for IPEF partners to request and offer assistance to respond to, mitigate, and recover from the impacts of a supply chain disruption. The Network would also organize simulations to glean insights into potential vulnerabilities to inform the work of the Supply Chain Council and help IPEF partners prepare for and prevent future disruptions.
The IPEF partners also recognize the importance of labor rights and workforce development in strengthening resilient supply chains across the Indo-Pacific. To that end, the Agreement would establish a unique tripartite IPEF Labor Rights Advisory Board, with government, worker, and employer representatives. The Board would work to identify labor rights concerns across IPEF supply chains and develop recommendations and issue technical reports on specific sectors. The Board also could publish business advisories, best practices, and other relevant information. The Agreement also would commit each IPEF partner to establishing a mechanism for receiving allegations of labor rights inconsistencies at individual facilities in another IPEF country and establish a process for the IPEF partners to work together to address any allegations.
The Department of Commerce is making this text public prior to signature as part of the Biden-Harris Administration’s ongoing commitment to transparency through the IPEF negotiations. Throughout the negotiations, the Department of Commerce and the Office of the U.S. Trade Representative (USTR) have jointly held listening sessions for stakeholders to provide thoughts and comments on IPEF, including the proposed Supply Chain Agreement. The Department of Commerce will continue to provide regular updates and briefings to Congress and to stakeholders as IPEF partners work through their domestic processes to accept, adopt, or ratify the Agreement following signature.
The IPEF partners are committed to implementing this landmark Agreement as soon as practicable and have already started work in preparation for its entry into force.
To read the full text of the IPEF Supply Chain Agreement, click here.Leadership Gina M. Raimondo Tags Secretary Gina Raimondo Indo-Pacific Economic Framework Indo Pacific
3 weeks 2 days agoCheckout news
Remarks by Deputy Secretary of Commerce Don Graves at the IDB "Bid for the Americas" Launch
Thank you, Suzanne, for that introduction. Hello everyone! I’m very pleased to be here at the IDB.
I’d like to thank President Goldfain for the invitation to attend today’s launch of the “BID for the Americas” Program. I applaud his leadership and efforts to evolve the Bank, making it a center of knowledge, expertise, and innovation including on the most pressing issues that face the region – climate change, social issues, and sustainable physical and digital infrastructure – all issues that we at the Commerce Department consider central to our work in the Western Hemisphere. In particular, I appreciate his approach to working with a broad group of stakeholders, especially the private sector, to ensure the impact of the IDB’s programs in partner countries.
I’d also like to take this opportunity to thank Special Presidential Advisor and former Senator Chris Dodd for his leadership in advancing implementation of initiatives launched at the Summit for the Americas and of course, Alternative U.S. executive Director here at the IDB, Fabiana Jorge, for her efforts.
I’d also like to take this moment to recognize IDB’s support for the Americas Business Dialogue (ABD), which offers private sector recommendations to the public sector and whose membership includes many U.S. companies.
I understand that the ABD recently held its first meeting with President Goldfajn to discuss his vision and how the ABD and IDB can work together, while advancing the ABD’s policy recommendations in the lead up to the next Summit of the Americas. It heartens me to see U.S. companies contribute to ABD’s vital work, and I look forward to seeing more U.S. companies follow suit.
Last May, in my role as Deputy Secretary of Commerce, I travelled to Brazil to meet with business leaders and public officials about how we could better align our countries’ trade priorities and open up new lines of economic dialogue. With me was a diverse set of over 50 U.S. business representatives hailing from 21 different states, plus Puerto Rico.
On that visit, I heard time and again what is now a common sentiment from across our partners in Latin America and the Caribbean: countries want more choices from the private sector. More choice for quality goods and services. More choices for commercial, business-to-business partnerships that offer access to innovative ecosystems, trusted capital, and transparent financing. More choices for commercial partners, big and small – that prioritize the development of local talent.
And for these reasons, many view U.S. businesses as partners of choice that can do more, especially in sectors that will drive the region’s economic transformation and sustainable development in the years to come – such as clean energy, the digital economy, health, and climate smart agriculture.
For their part, U.S. companies are ready and able to partner. They want to better understand opportunities early and often -- including through projects financed by the IDB and other development banks. They would like to see continued efforts to improve the commercial enabling environment in partner countries – something that I know is central to the IDB’s efforts.
This is why I believe programs like ‘BID for the Americas’ is so critical – because they help ensure that US businesses are able to compete and contribute to the development goals of IDB partner countries.
Our Commercial Liaison Team, is working with the U.S. Treasury and U.S. Alternative Executive Director’s office here at the IDB (and the other MDBs) and is focused on engaging the U.S. business community, including small and medium-sized enterprises, on opportunities to compete for IDB-financed projects, which rely on transparent and rules-based procurement policies.
More broadly, we at the Commerce Department are leveraging our network of U.S. and overseas offices to promote greater participation by U.S. companies in projects around the world, including MDB-financed projects.
Our International Trade Administration works tirelessly to connect U.S. companies with business opportunities around the world through our U.S. and Foreign Commercial Service, a global network of experienced trade professionals in more than 100 U.S. cities and 80 countries.
In the past three years alone, we have facilitated approximately $314 billion in U.S. exports and inward investment, resulting in over 1.3 million U.S. jobs being supported. And there is more that can be done, in partnership with countries in the region and institutions like the IDB.
This, in my view, is at the heart of the Biden Administration’s initiatives such as the Partnership for Global Infrastructure and Investment (PGII) and the Americas Partnership for Economic Prosperity (APEP), put simply: to leverage the strength of our private sector to offer partnering countries high-quality, transparent alternatives to financing, goods, and services to help meet their economic development needs.
Again, congratulations to President Goldfajn and the entire IDB Group for this new program. We at the Department of Commerce understand just how transformational this program will be in bringing into focus the full breadth of our economic opportunities across this emerging region.
I’m excited to work together, and I anticipate our partnership growing even fuller as you take this program on the road directly to the companies.
Bureaus and Offices International Trade Administration Leadership Don Graves
3 weeks 3 days agoCheckout news
Readout of Secretary Raimondo’s Meeting with Shanghai Party Secretary Chen Jining
Today, U.S. Secretary of Commerce Gina Raimondo met with Shanghai Party Secretary Chen Jining to discuss commercial sectors where the U.S. and China can promote greater cooperation based on shared interests. The Secretary encouraged Party Secretary Chen to work closely with the U.S. business community to promote transparency and the fair application of laws and regulations to ensure stability and predictability in the business environment for the U.S. and other investors. They also affirmed the importance of people-to-people ties, including through tourism and education opportunities.Leadership Gina M. Raimondo Tags Secretary Gina Raimondo
1 month agoCheckout news
Readout of Secretary Raimondo’s Meeting with Vice Premier of the People’s Republic of China He Lifeng
U.S. Secretary of Commerce Gina Raimondo met with Vice Premier of the People’s Republic of China He Lifeng to engage on commercial issues impacting the U.S.-China economic relationship.
The Secretary underscored the U.S. commitment to taking actions necessary to U.S. national security. She raised key issues of concern for U.S. businesses and workers, including the level playing field for U.S. companies and workers, PRC subsidization of industry, and underdeveloped intellectual property protections.
The Secretary and Vice Premier also discussed the importance of strengthening the protection of trade secrets for U.S. businesses operating in China and agreed that subject matter experts from both the U.S. and China will hold technical discussions on the issue. They discussed topics including climate change, space commerce, AI, and healthcare.
1 month agoCheckout news