[inaudible conversations] >> thank you everybody. a roundtable is a trade conference and we are pleased to welcome here today ambassador montezuma mexico ambassador singapore and ambassador of costa rica the ambassador of the eu and the united states and our moderator kristin silverberg president and ceo of this roundtable. >> thank you ken and thank you for having us here today. this panel the investors panel has become a tradition which i'm

delighted to help continue. i'm particularly b excited becae the topic we are discussing today the role of trade in advancing foreign-policy is a critical one for the ongoing debate in the t last about our tradeu. agreements. there was a time not too long ago when the u.s. administrations with unapologetically couched the in national security and foreign-policy benefits of trade but that line of argument has gone outts of fashion in parts f washington. when you hear officials from the trump or the byte administration talking about the connection between national security and trade there likely to be talking about the national security risk of trade down the ways that trade could be used to advance foreign-policy interests. i'm thrilled to have the opportunity tohr pose this issue some of our closest trading partners and ask them how they think about these connections in how they think about the role of

their own trade agreements and their agreements with us. let me get started. ambassador i will start with you and this issue. we obviously have a lot of people in the u.s. government and lots of u.s. companies are worried c about supply chain ris including but not limited to. including the political risk and of course you have that trade agreement with mexico that's helping to advance it and how do you think about this trend and what he think we need to do to take full advantage of this opportunity? >> thank you very much kristin. i think we are truly diverse and trade in mexico. partner number one of the u.s. last year with about $800 billion trade and if we are partner number one at the

u.s. it means we have an incredible effort in both countries in order to start this trend. mexico received the most important foreign investmentsmon its history and what is interesting is that in many of the companies that have invested in mexico decides that they are looking for human capitol. if you speak with the people of tesla, tesla announced its new factory, they say that they found out that they would have a source of mexico that will work

for their factory and that was one of the most important aspects. another thing that i can say is that when mexico exports we have 40% of u.s. previous imports so in mexico exports the u.s. is also exporting. and what this shows you is that mexico and the u.s. are not just trade partners but that we are producing together. there are many many companies and many that come and go several times and they are produced together so it's not just economic integration. >> thank you. ambassador sanchez let me ask you about your trading

relationship with the u.s.. when president bush signed it in 2000 he unapologetically cited theap national, the foreign-poly strategic benefits. he talked about the fact that it would impact influence in the region and ourur current stabily and so on. i think the economic and if it's atat the deal are clear that our own bilateral trade have expanded the debate gets met some expectations in terms of strategic benefits and can you talk about the broader consequences? >> sure. i want to start with, part of my job is to talk to everyone on the hill and talk to everyone in and one of the first things that people ask they think about it's a place to go to visit and most ofs the pineapple you get here and bananas, the pineapples are from costa rica and when i tell them actually areos number one

export are medical devices people think i didn't know they did t that. oh yes, we do. it has been a success story for costa rica not only medical devices but just as an example because also semi-conductors an, many other things. let's start with costa rica and had strong friendships and working relationships with the united states. it helped expand those relationships not only with the united states but also within central america and theu. dominican republic which is a big plus. wea, do have two vibrant sector. again i've mentioned them already which are also close to the national security of the united states and the semi-conductors. i can tell' you that until last

year in august they announced a $1.2 billionon investment in the next two years and costa rica and that's just a teeny tiny country and people think about going there to travel, which is alsosolenk great. please go it's only a 4.5 hour flight from here. again what are the challenges that we are having? 20 years ago and what are the challenges today? their political challenges. in the central american region although still beneficial for all countries including costa rica which is why costa rica is trying to open up to get okay, why don't we start looking into other options. let me give you a little bit of an insight on how slow we are. i don't know you've heard the

saying everything is pure life. we are slow but we get there. what do i mean with that? you can be slow and not get to where you need to go. we decided to be part of the oecd some of the high standards in the world. it took us 10 years. when they first started which actually the minister of trade the current minister of trade was part of that, they said no you guys costa rica is to go through congress and changes in laws, regulations. 10 years later we did it. we are part of the oecd. that means costa rica can join usmca. why not? usmc has pretty good high standards for costa rica can get to those standards so it prepared uss for that which is again that doesn't mean if we start with other trade

agreements that doesn't mean we are going to leave one behind but it's going to, we can get more and we can have higher standards. if the country can do that, why not? >> ambassador let me ask you about singapore's agenda. while the u.s. has moved away from negotiating traditional trade agreements singapore has implemented 27 fta's within singapore. do you think of those as just part ofhi your economic agenda r do you also think about them as part of a foreign-policy? >> i think that trade is three times the gdp. i believe in intellectual trading system how it was forged by the u.s. coming of world war ii and over the decades it's had

economics to believe economic growth and allowing efficiencies of scale in productivity and innovation. in our part of the world we have seen how trade has fueled domestic development but also regional and even global integration of the colonies. when we talk about foreign-policy foreign-policy is really impossible and not so every country. i think trade for a number of decades has been away to see results from the agreements that we signed. i still believe in the early decades of globalization it may

have masked some of the problems that we see today in the inequalities and inefficiencies arising from globalization that all societies have to tackle. nonetheless i think if you look at it in its totality to trading system has been a plus for almost all countries. maybe a little bit about singapore and the u.s. because this year we celebrate the 20th anniversary of the free trade agreements and establishing 2004. the later years when we have good trade data over those 18 years actually trade between our two countries has grown three times from $70 billion in its inception to now about 210 billion u.s. dollars. by the way the u.s. enjoys a

very healthy supply which will come in useful next year depending on how things shape up. the u.s. runs a surplus both and in trading groups and trading services. but also as result of their free trade agreement we have close to 6000 u.s. companies in singapore using us as a regional headquarters for some of them. singapore is a springboard to the larger region. they are reaping the benefits of integration that we have seen in the asean and across larger asian economies. singapore just to get the u.s. since of what is accumulated over the years come as close to half a trillion u.s. dollars.

what does that mean? it means that cumulative usda is larger than the larger -- into china, japan and south combined. combined. and so when i say actually there's a lot of economic skin in the game the u.s. remains invested in our part of the world and i think you understand what it is that i'm saying. >> thanknk you. ambassador you have a foreign-policy background from lithuania. what are your reflections on the broad question of the role of trade in advancing foreign-policy? >> thank you for thehe question. i would like to look at the present of the manufactures association.

if you want to advance or if we want to move together with our trade and make sure that our security's agenda will fare in the same way we have to do those two together. because well probably there is between the transatlantic relations one of the things is it's a value-based proposition. first of all we were the ones who built international order and international organizations and i think we probably have appreciated more how it works because while the trade in the modern age would not be the same if we don't have those

international routes i and organizations and my colleagues were talking about oecd but there are standards. if we look at the geopolitics what is happening right now in r the world to think it's getting scarier with each day. the turbulence in the complex around the world have huge implications on our economy. warren sees the challenges, inflation distorted supply chain and on the other hand when you have reliable trading partners if you have a strong and resilient transatlantic relation you can see even during the

crisis that you actually see the trade growing and if last year we had 1.3 trillion-year-olds between the eu and the u.s., two years ago so last year it would be almost 5% higher. so it is growing up and one of the reasons was that in europe we had to make a huge change in that sector because you would see an over reliance on russian energy resources that had to be sold as they were issued and don't underestimate how much it costs in organizing that in making sure your people aren't there during the winter.

and on top of that, you have to find where to buy. and this is where alliances matter.s most of the growth of the trade is due to lng. and when you need to change more than 60% of your energy resources you have to pay the price and you have to rely on your allies. this speaks for itself and we can go sector by sector semiconductors have been mentioned. we can go into the connectivity factor and think if you want to find an alternative and if you want to have a reliable secure production line i think he will

always depend on the partners as secretary blinken called that the partners of the first resource. >> let me stay with you. the u.s. and europe have a history of using our combined economic influence to work together to address national security risk and foreign-policy objectives. sometimes using trade tools incorporation with each other. do you think we are in lockstep on china and if not where do you see differences? >> well i think the biggest difference is in reality. first of all you are purged china as a trading partner and is a systemic rival. i think you can useof different words and different synonyms and you will find the u.s. approach

is not much different. your head of national security talks about high walls and high fences. we as well have a couple of weeks ago at the end of january you an economic security strategy which actually in general includes the private-sector and with china the semiconductors and quantum computing. so even sectorwise this includes making sure you have export

controls and strengthening investment screening on the outbound investment and how we see it in certain sectors and evenw in going small i could goa step further which i'm sure in this country we will be looking into what we do as research. it can be quite sensitive so this, these are approaches which i think it's really quite close and we have technology council where we definitely have to discuss and to compete not only to discuss

but to compare our notes. >> you served in china. anything you want to add about singapore's approach to china or corporation with the u.n. on these issues? >> well i think singapore would want to be friends with all countries big and small. we are mindful of the sensitivities in the u.s. china relationship especially over trade and the sensitivity risk. the world has gone from one operating paradigm with interdependence to one where we are acutely mindful of overdependence and now we are really trying to untangle some of that interdependence to try and find ways to make your supply chain and your trade relations more robust.

that's understandable. today it is focusing on a typical country and for sample the u.s. may be over reliance on the country. i suspect in time this would be focusing on countries that companies from both countries whether its operating within that country or outside of that country and so you will have second order, second order sites that will have to be studied in the years to come. singapore is a hub for investments aroundnd the world. a significant part of it comes from the u.s. is limited. japan and the eu and a growing number of chinese companies are coming into singapore. singapore needs to be able to thread the needle very very

carefully. if we believe that we can be a place where there's cross-pollination of ideas and people. increasingly we must guard against cross pollution and co. mingling should not take place and it's very important for singapore to ensure that they are -- there are safeguards in place for that co-mingling is going to be separate. >> mr. moctezuma barragan we are coming up on the sunset review and having conversations around that. theon u.s. has some issues in mexico has issues and canada has a few issues. i expect some of these issues around national security will be part of that conversation. how do you see the sunset reviea playing out in kenya just highlight someon of this? >> i think usmcj's success story

and what i believe is we have stopped looking at the trees and start looking at the forest. the future of the u.s. and the future of the region. i'm going to give you an example. if you look at the production of transportation equipment, if we see manufacturing the world, china produces 9.8% of the worlds transportation which means planes and trains. the u.s. produces 7.6 so china passed the protection and the manufacturing capacity of the u.s.. mexico is 6.4 and canada is 2.9.

then you have 16.9 so when north america produces 16.9, that's much more than 9.8. so what we should be thinking is about the medium and long-term view of where we want to get as a north american region. i think we are taking strong steps over that future with the chips and science act and they anti-inflationary act and when they are giving credits to products that are produced in north america. i think the north american regionbe -- foreign-policy and trade must be looked at not

together but is one common effort. and what i'm optimistic about is that i believe share values and the fight for freedom and democracy in the world will be led by north america which i'm sure it will become a the most competitive region in the world. >> you were in d.c. watching her presidential campaign play out very closely in the course we are watching your presidential campaign play out. our trade issues a big part of your presidential campaign and if so what are the issues? >> in mexico campaigns have not officially started. there are candidates and the two main forces include a woman candidate so we could have the woman as president for the first

time in history. campaigns have not not started and of course trade is a very very important issue. we trade with the u.s. about 70% of our trade and from our gdp 80% is manufacturing and trade so it's very very important for us. >> ambassador crespo-sancho one of the interesting finding trade agreement pursuing novel trade in indo pacific in our region. can you talk about that approach and what are your main ambitions for the americasli partnership d what you think is possible using that novel framework? >> interestingly enough costa rica will be hosting next year the meeting in 2025 the apec

meeting. also president chow has accepted, he's going to take on a leadership role within apec. also there is a possibility they are discussing which of the countries are going to be part of apec and not only the countries that are in right now. other countries with the possibility of joining. there are lot of interesting things happening with apec. in the last meeting was november. many of the president of the region were here and they were discussing -- the next steps. costa rica has two factors with. those are the two tracks that we are joining or that we are leading per se and we are also

leading the one on the center for excellence which is related to the chips act money and it's related to that. costa rica -- costa rica will be hosting in every country has its own responsible to. costa rica is hosting the center for excellence related to technology. a regional center for excellence which as you all know probably we do not have even had states and i think it's also problem worldwide there are not sufficient people with the necessary skills for technological jobs. the last numbers if i'm not mistaken a lack of 300,000 people in latin america with those skills. that regional hub which is already moving in costa rica and the government is taking it on an intel is helping us giving us a chunk of money to make a

virtual lab and there will be a cloudd lap and three overall las so that people in latin america from mexico, from argentina, from everywhere can go there and train and help the region overall. in the u.s. there's also a lack of skills. we are all having the same issues. >> that is what costa rica is doing with apec however we also have, we see apec is a great opportunity. when things are not as open as we wish they were in issues related to trade and we have to look for other venues and i think apec is a good other venue to start with. some people have to see how it evolves and how, we want to see results. that is what we are trying to do

and i think all the other countries in apec o is what we e looking for. >> i have one final question for ambassador williams iba want to take time to open up to the audience what i wanted to get to fiscal trade and the role that singapore's plan and not and the new zealand standard trade agreement. can you talk for a moment about the future of digitalre trade? >> if you would permit me to take a step backward to talk about a new economic architecture that is envisioned in indo pacific. you have the ctt tp and the u.s. is not present. china is knocking on the door hoping to be there. you have the asean to bring together our main dialogue partners in asia.

we have china, japan australia and new zealand. the u.s. is not in it. we have the digital economy partnership initiated by chili new zealand and singapore. china is knocking on the doors and so to canada and costa rica. the u.s. is not. there is a danger that the u.s. absent from all the economic architectures that are being developed and if you then look ahead 20 or 30 years down the road at u.s. relations in asia and the indo pacific which is why singapore is so deeply

invested in the indo pacific economic framework not because we see huge benefits for us economically because we are a bilateral free trade agreement and everyone believes that the u.s. cannot afford tobu be abset economically. to your point digital economy agreements we believe it is the way forward. it's trilateral with new zealand and chilly in the uk with australia and south. we have a clean economy agreement with australia. we believe that there are going to be benefits for this new agreement particularly when it pertains to -- which is a cause

for some concern within the united states. we believe we need to work together on establishingve the rules, the standards and when necessary given the safeguards to make sure economy confections and integration can be placed in a c structured manner going forward. >> thank you. very compelling point about the importance of u.s. engagement in the region. i want to askmp the audience to come with any questions. i see a question at the front table. >> hi. i'm barbara simons and i'm vice chair of the international law session for the national bar. we are in talks with the free trade area to enter into an mou

and i was pleased to see that ambassador tom: assigned in the u.s. has signed an agreement with the african continental free trade. my question for the ambassadors is what do you see as your short and long-term relationships with africa acknowledging that it's a continent and not a country in terms of trade and how it serves as a foreign-policy approach? >> ambassador crespo-sancho do you want to take -- ambassador neliupsiene to undertake that? theou neighborhoods with neighbs and the relations are for quite some time have been very stable but of course we are talking about continents so there are security issues and questions

about democracy. the biggest contributor for the international partnership or in other words development that paves the way for the bigger trade relations. this is another huge project which is changing the mindset and moving on the global gateway. a huge protest which is supposed to encourage partnerships not only governments to government but is well private business and financial institutions to partnership and the huge infrastructure first of all projects which may then pave the way for more favorable trade and commerce relations. if it works we would be in an

absolutely different future of our commercial relations in three to five years. >> other questions? >> hi. i'm with politico. this is for the ambassador. actually i had gotten an e-mail just the other day from a reader asking me if i had heard about a rumor that the government was going to put forward an executive order to increase tariffs? i had not heard about it but here i am today and i thought i would take the opportunity to ask you, is there some new government tariffs action coming down the pike? >> not that i know of.

glasgow >> here we go. >> hihe i'm from south china ani have two questions. we talked about elections and we talked about tariffs. i just wanted to ask you when former president donald trump was in the nomination and he was -- 60% tariffs how do you view that and are you already thinking about how you're going to deal with that if it comes into play and how tariffs impact what we are talking about an trade with foreign-policy but i have a specific question for the ambassador from singapore be talked about chinese companies coming to singapore and recently we saw one of the companies with tik tok and we saw the ceo of tik tok in grilled and some

questions being asked for you no no -- how do questions like that impact what we talk about with trade inform policy and if someone from singapore is asked if he works for the chinese communist party? >> it's an impact of 10% tariffs first. you have an easy next question. what is the impact of 10% tariff? >> that would be very very come it would hinder the whole relationship because against free trade and it's against the north american region. what i truly believe is that future of mexico canada and the united states is to become allies and to really work together and have a higher view about the world's development because we are not just sharing

goods and services. we are sharing values. whenwe you start taking down fre trade which is the one that put us in this condition to work together, i think that's not a very good idea. >> anything to add on the tik tok? >> we know senator cotton well. we hold them in high regard. i think we are also going to see the line of questioning that he took in the remarks he made subsequently from two angles. one it's election season and we have the domestic audience that they need to be able to not only understand the festivities but also to find ways to address them. so that's one part of it.

two i think it reflects some of the deep-seated concerns that the u.s. may have over the trade relations of china, over companies in china by their and china itself are coming up of china that would hold a significant amount of data, possibly even sensitive data of u.s. citizens. something that can be understood in something that can be appreciated. i think the line of question taken too far can sometimes possibly undermine the image and the standing of how the u.s. is viewed in different parts of the world. not just in asia and not necessarily -- so i think

there's a fine balance that needs to be struck between the security sensitivities and also the overall impression that the u.s. wants to continue to project and portray to the rest of the world. >> thank you but i think we have time for one more. yes, in the back. >> thank you. i'm a georgetown law byy the question for mr. yew. i was wondering it seems like china wants to get an so this position of what kind of compromise or what kind of concessions or the other

countries that are already part of these agreements asking from china or is there a position where you can ask for concessions and can be less or other regions learn from that as well? >> i would say i'm obviously not privy to the discussions that are taking place. there's a working group started for china and indeed for canada on the economy partnerships and the one for china is chaired by chile. we haven't gone yet for the dtp but across these agreements is the need for consensus by all current members to accept ther new member and m that consensuss built on top of number one and

assurance that an applicant can fully meet the standards and number two the members are convinced that they will faithfully abide. we believe that those are the standards that we will not compromise on and how the discussions with any particular applicant will shape up i think it's for the groups to view. >> thank you. the panel before us -- i'm sorry? >> just one sentence it's very good of course to have a regional agreement especially having in mind the topic which goes much beyond any single continent like e-commerce or digitalne trade. i do believe we have really to be sure is a like-minded country

here the most important for arranging of global agreement is wto. if we don't manage to do all of them that should be more collateral. everyone has to be on board and i think it's a like-minded countries can set standards for that we will all be better off and hopefully the u.s. will actively join that as well. >> i'm going to give a the last word. thank you all for joining us and thank you for having us. thank you all very much and thank you ambassador. [applause]

had never been in trouble before. i'd serve my country and i was hoping it would get a little bit more grace and he probably he could have given me more time than he did. i remember hearing my mother and tenure she couldn't believe it. it always stays with me and it's always motivating and it always lets you know how fragile our freedom is and how perilous it is and if you make one wrong move sometimes it could mean

literally the end of your life as you know it.