Advancing a Shared Vision
A FREE AND OPEN
INDO-PACIFIC
NOVEMBER 4, 2019
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A FREE AND OPEN INDO-PACIFIC
Advancing a Shared Vision
NOVEMBER 4, 2019
P
resident Donald J. Trump has made U.S. engagement in the Indo-
Pacic region a top priority of his Administration. In November 2017
in Vietnam, he outlined a vision for a free and open Indo-Pacic in
which all countries prosper side by side as sovereign, independent states.
That vision, shared with billions of people in more than 35 countries
and economies, is based on values that have underpinned peace and
prosperity in the Indo-Pacic for generations. Free, fair, and reciprocal
trade, open investment environments, good governance, and freedom
of the seas are goals shared by all who wish to prosper in a free and
open future.
This report describes how the United States is working with allies and
partners to implement our shared vision:
■ The United States remains deeply engaged in the Indo-Pacic region and committed to its
prosperity. With $1.9 trillion in two-way trade, our futures are inextricably intertwined. U.S.
government agencies, businesses, and institutions are spurring private sector investment and
gainful employment in infrastructure, energy, and the digital economy, strengthening civil society
and democratic institutions, countering transnational threats, and investing in human capital
across the Indo-Pacic.
■ The United States, our allies, and our partners are at the forefront of preserving the free and
open regional order. All nations have a shared responsibility to uphold the rules and values that
underpin a free and open Indo-Pacic. We are increasing the tempo and scope of our work with
allies, partners, and regional institutions such as the Association of Southeast Asian Nations
(ASEAN), the Mekong states, the Pacic Island countries, and our strategic partner India to address
shared challenges and advance a shared vision.
■ The United States’ Indo-Pacic strategy is driving a tangible increase in resources devoted to the
Indo-Pacic region. Since the start of the Trump Administration, the Department of State and the
U.S. Agency for International Development (USAID) have provided the region with over $4.5 billion
in foreign assistance. This has been augmented by hundreds of billions more in development
nancing, investment by U.S. rms, and other sources. We are investing new resources, launching
new programs, and building new partnerships to ensure a safe, prosperous, and dynamic future
for the region.
I am pleased to share this implementation update on our Indo-Pacic strategy, and to note that our work
has just begun. As President Trump said in November 2017: “We have been friends, partners, and allies in
the Indo-Pacic for a long, long time, and we will be friends, partners, and allies for a long time to come.”
Michael R. Pompeo
Secretary of State
4
A MESSAGE FROM THE SECRETARY
5
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
T
he United States is and always will be an Indo-
Pacic nation. From our rst trading ships that
departed for Canton just after the American
Revolution to our rst consular presence in Kolkata in
1794, U.S. engagement in the Indo-Pacic is a story of
trade, exchange, shared sacrice, and mutual benet.
In recent decades, the Indo-Pacic has undergone a
remarkable transformation. As hundreds of millions of
people climbed out of poverty, the region has become
home to world-class companies and an important
engine of global economic growth. This transformation
was possible because a free and open regional order
ensured stability and a level playing eld on which
countries could grow and prosper as sovereign,
independent states.
Today, Indo-Pacic nations face unprecedented
challenges to their sovereignty, prosperity, and
peace. The U.S. National Security Strategy, released
in December 2017, recognizes that the most
consequential challenge to U.S. and partner interests is
the growing competition between free and repressive
visions of the future international order. Authoritarian
revisionist powers seek to advance their parochial
interests at others’ expense.
We are committed to upholding a free and open Indo-
Pacic in which all nations, large and small, are secure
in their sovereignty and able to pursue economic
growth consistent with international law and principles
of fair competition. We will compete vigorously against
attempts to limit the autonomy and freedom of choice
of Indo-Pacic nations.
Competition, however, is not conict. Rather, it can
prevent conict and elevate the performance of all.
The United States and our partners believe that the
best way to prevent conict is to reinforce the values
that supported the Indo-Pacic region’s remarkable
progress.
[T]his entire region has emerged — and it is
still emerging — as a beautiful constellation
of nations, each its own bright star, satellites
to none — and each one, a people, a culture, a
way of life, and a home.
President Donald Trump
November 10, 2017
A Shared Vision
U.S. Secretary of State Michael R. Pompeo rearmed U.S. dedication to ASEAN during the ASEAN Regional Forum Ministerial in Bangkok,
Thailand, on August 2, 2019. (Credit: U.S. Department of State)
6
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
We have a fundamental interest in ensuring that
the future of the Indo-Pacic is one of freedom and
openness rather than coercion and corruption. The
United States is the largest source of foreign direct
investment (FDI) in the Indo-Pacic. In 2018, we
conducted over $1.9 trillion in two-way trade with the
region, supporting more than 3 million jobs in the
United States and 5.1 million jobs in the Indo-Pacic.
All ve of our non-NATO bilateral defense alliances are
in the Indo-Pacic. We are also the largest donor of
foreign assistance in the region, contributing $2 trillion
in constant dollars since the end of World War II.
Under President Trump’s leadership, the United States
is implementing a whole-of-government strategy
i
to
champion the values that have served the Indo-Pacic
so well: (1) respect for sovereignty and independence
of all nations; (2) peaceful resolution of disputes;
(3) free, fair, and reciprocal trade based on open
investment, transparent agreements, and connectivity;
and (4) adherence to international law, including
freedom of navigation and overight.
The U.S. vision for the Indo-Pacic excludes no nation.
We do not ask countries to choose between one
partner or another. Instead, we ask that they uphold
the core principles of the regional order at a time when
these principles are under renewed threat.
The United States is strengthening and deepening
partnerships with countries that share our values. Our
alliances with Australia, Japan, the Republic of Korea,
the Philippines, and Thailand have helped sustain
peace and security for generations. ASEAN sits at the
geographical center of the Indo-Pacic and is central
to our vision. Our strategic partnership with India, a
fellow democracy of 1.3 billion people that shares our
vision for the Indo-Pacic, is reaching new heights.
We are joining with the Mekong states, Pacic Island
countries, South Asian nations, Taiwan, and many
others to face emerging challenges. In September
2019, the rst ministerial-level meeting of the United
States, Australia, India, and Japan at the Quadrilateral
Consultations marked a new milestone for our
diplomatic engagement in the region.
This report describes our engagement in the Indo-
Pacic and our commitment to its future prosperity.
It highlights tangible resources directed to the region
with support from the United States Congress, and
it notes specic steps we have taken alongside allies
and partners to realize our vision since the start of the
Trump Administration.
What I call the “Free and Open Indo-Pacic
Strategy” derives from our desire to preserve
the blessings of open seas, together with these
very countries, as well as the United States,
Australia, India, and others, and indeed, all
countries and peoples who share the same
intent.
Prime Minister of Japan Shinzo Abe
September 25, 2018
Crowds await President Donald J. Trump, following his meetings
in Hanoi with Nguyen Xuan Phuc, Prime Minister of the Socialist
Republic of Vietnam, an important Indo-Pacic partner. February
27, 2019. (Credit: White House)
7
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
Engaging Partners and Regional Institutions
President Trump and Japan’s Prime Minister Shinzo Abe leave the Akasaka Palace on May 27, 2019, following their afternoon of meetings
on Indo-Pacic cooperation and the enduring U.S.-Japan alliance. (Credit: White House)
S
ince the end of World War II, the network of U.S.
alliances and partnerships has been at the core
of a stable and peaceful Indo-Pacic. No country
can shape the future of the region in isolation, and
no vision for the region is complete without a robust
network of sovereign countries cooperating to secure
their collective interests. Under the Indo-Pacic strategy,
the United States has increased its tempo and level of
cooperation with allies and partners in the region.
MULTILATERAL ENGAGEMENT
A strong, rules-based architecture anchors the U.S. vision
for the Indo-Pacic region. Representing ten countries, 650
million people, and a combined GDP of almost $3 trillion,
ASEAN is central to this architecture.
ii
ASEAN is most
eective when it speaks with one voice about pressing
political and security issues, and it took an important step
in this regard with the June 2019 release of its “Outlook
on the Indo-Pacic.” We see a clear convergence between
the principles enshrined in ASEAN’s Indo-Pacic Outlook—
inclusivity, openness, good governance, and respect for
international law—and the vision of the United States
for a free and open Indo-Pacic, as well as the regional
approaches of our allies, partners, and friends.
The United States supports ASEAN’s eorts to ensure that
all Indo-Pacic countries, regardless of their size, have
equal stake in determining the future of the region. U.S.
technical assistance strengthens capacity in the energy
sector; promotes shared approaches to cybersecurity
and digital trade; creates opportunities for small and
medium-sized enterprises; and encourages women and
youth innovators and entrepreneurs. U.S. programs also
FACT
ASEAN is the top destination for U.S.
investment in the Indo-Pacic. In 2018,
cumulative U.S. investment in ASEAN was $271
billion, more than U.S. FDI in China and Japan
combined.
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A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
support the ASEAN Economic Community by reducing
the cost of doing business and streamlining trade, while a
new partnership between U.S. and ASEAN cities will help
realize smart improvements in transportation and water
security.
In 2019, we commemorated the 10
th
anniversary of the
Lower Mekong Initiative (LMI), a partnership to advance
economic growth and narrow the development gap in
the region. LMI builds the capacity of partner countries
in areas such as energy and water security, sustainable
infrastructure, and regional institutions. We continue to
support the Friends of the Lower Mekong, an important
donor coordination mechanism.
The United States works within the Asia-Pacic Economic
Cooperation (APEC) to facilitate digital trade, improve
the ease of doing business, open services markets,
and increase women’s economic participation. In 2018,
we launched the U.S.-Support for Economic Growth in
Asia (US-SEGA) technical assistance program to help
partners adopt high-standard, comprehensive trade and
investment policies in areas like regulatory requirements,
women in science and technology, digital economy,
and cyber security. We support the Indian Ocean Rim
Association (IORA) and its focus on maritime economy,
women’s economic empowerment, and environmental
and maritime security issues.
While ASEAN serves as the backbone of regional political
and security discussions, “minilateral” engagements oer
nimble ways to coordinate with like-minded partners.
Through the Trilateral Strategic Dialogue, the United
States has signicantly deepened our engagement with
Japan and Australia on many issues, including sustainable
infrastructure development, maritime security, and
counterterrorism. Leaders from the United States, India,
and Japan met in November 2018 and June 2019 to
promote shared fundamental values such as freedom,
democracy, and the rule of law, and to exchange views on
pressing security and economic issues. All four countries
elevated their Quadrilateral Consultation to the ministerial
level in September 2019 (see box, “Growing Partnership
with India”).
BILATERAL PARTNERSHIPS
The U.S. vision and approach in the Indo-Pacic region
aligns closely with Japan’s Free and Open Indo-Pacic
concept, India’s Act East Policy, Australia’s Indo-Pacic
concept, the Republic of Korea’s New Southern Policy, and
Taiwan’s New Southbound Policy.
We are working with Japan to improve energy and
infrastructure under the Japan-U.S. Strategic Energy
Partnership (JUSEP) and Japan-U.S. Strategic Digital
Economy Partnership (JUSDEP) from the Indo-Pacic to
the east coast of Africa. Our commitment of $29 million
for energy development in the Mekong region in support
of Asia EDGE (Enhancing Development and Growth
through Energy) will further strengthen this partnership,
as will the alignment of U.S. investment with the Japanese
government’s target of $10 billion in public and private
investment and capacity building.
We are working with the Republic of Korea to expand
development collaboration across the Indo-Pacic region
through a memorandum of understanding signed
September 30 between USAID and the Korea International
Cooperation Agency (KOICA). A joint statement released
with the Republic of Korea in November will build on
governance and law enforcement programming, increase
water security cooperation in the Mekong region, and
deepen the links across our infrastructure nance and
cybersecurity agencies to jointly invest in human capital
across the region.
We are also strengthening and deepening our relationship
with Taiwan. We have repeatedly expressed our
concern over Beijing’s actions to bully Taiwan through
military maneuvers, economic pressure, constraints on
its international space, and poaching of its diplomatic
partners. These actions undermine the cross-Strait
Secretary Pompeo hosted a Quadrilateral Consultation with
Australian Foreign Minister Marise Payne, Indian External Aairs
Minister Subrahmanyam Jaishankar, and Japanese Foreign
Minister Toshimitsu Motegi in New York. September 26, 2019.
(Credit: U.S. Department of State)
9
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
India plays a critical role in the future of the Indo-Pacic region. President Trump and Prime Minister Narendra Modi of India wave to
crowds in Houston, Texas during the Howdy Modi rally, an event that included participation by a bipartisan group of 21 members of the
United States Congress. September 22, 2019. (Credit: White House)
GROWING PARTNERSHIP WITH INDIA
A strong U.S.-India partnership is vital to the U.S. Indo-Pacic vision. The inaugural 2+2 Dialogue in 2018 signicantly
enhanced our defense and economic cooperation. As a Major Defense Partner, India has purchased more than
$16 billion in U.S. defense platforms, with billions more in the pipeline. We signed a bilateral Communications
Compatibility and Security Agreement to facilitate defense cooperation in 2018, and plan to hold the rst ever tri-
service bilateral exercise, Tiger Triumph, in November 2019.
The United States and India are working together to address regional and global development challenges. The U.S.-
Australia-India-Japan Quadrilateral Consultations were elevated to the ministerial level in September, a historic
rst for our countries. The ministers armed their commitment to cooperation on maritime security, quality
infrastructure, and regional connectivity, and discussed priorities in counter-terrorism and cyber security. Our armies
are jointly training African peacekeepers and USAID is working with India in third countries to promote child and
maternal health development.
India is also a growing energy partner, with purchases of U.S. mineral fuel products jumping 119 percent in 2018 alone
to $6.2 billion. Under the U.S.-India Strategic Energy Partnership, we pursue energy cooperation in power, renewable,
eciency, and oil/gas segments. Space cooperation is another exciting area of opportunity, including a $1.5 billion
project to co-develop an Earth observation satellite called NISAR.
10
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
status quo that has benetted both sides of the Strait for
decades.
Consistent with the Taiwan Relations Act, the United States
supports an eective deterrence capability for Taiwan. In
2019, the Trump Administration approved and notied
Congress of potential sales of critical defense equipment
totaling more than $10 billion Through the American
Institute in Taiwan, we worked together to convene
hundreds of Indo-Pacic policymakers and experts on
issues including public health, women’s empowerment,
media disinformation, and the digital economy. We also
co-hosted the rst-ever Pacic Islands Dialogue in October
2019 to explore areas of cooperation among like-minded
partners in the Pacic Islands.
As a major exporter, trader, and investor in Southeast
Asia, the United States is committed to engagement
with ASEAN member states. ASEAN collectively remains
the United States’ fourth largest export market, while
Thailand and Singapore are two of the six fastest growing
sources of foreign direct investment in the United
States. In maritime Southeast Asia, U.S. companies have
been selected to participate in the “Build, Build, Build”
infrastructure initiative in the Philippines as we deepen
our security partnership. The opening of a new U.S.
Embassy in Jakarta in early 2019 highlighted our strategic
partnership with the world’s third largest democracy and
largest Muslim-majority nation, and we remain committed
to the sustainable development of Timor-Leste, one of
the world’s newest democracies. In Malaysia, the United
States has worked locally to support the government’s
reform eorts, including with a two-year program
launched this year for transparency and accountability
reforms.
In mainland Southeast Asia, we supported Thailand’s
chairmanship of ASEAN and continue to deepen our
partnership with Vietnam, who will chair ASEAN in
2020. The Mekong region of Cambodia, Laos, Burma,
Thailand, and Vietnam is strategically important to the
United States. This region is facing new challenges that
put autonomy and economic independence at risk,
including debt dependency, a spree of dam-building that
concentrates control over downstream ows, plans to
blast and dredge riverbeds, extraterritorial river patrols,
increasing organized crime and tracking, and a push by
some to mold new rules to govern the river in ways that
undermine existing institutions.
Over the last 10 years, U.S. government agencies have
provided over $3.8 billion in assistance to the countries
of the Mekong. This has helped strengthen local human
capital to better address transboundary challenges
on water security, smart hydropower, energy and
infrastructure planning, and education. We are also
strong supporters of the Ayeyawady-Chao Phraya-
Mekong Economic Cooperation Strategy (ACMECS),
an inclusive cooperation framework to support the
development of this important region.
Our engagement with Pacic Island nations rose to
unprecedented levels with President Trump’s historic
Oval Oce meeting with the three Presidents of the
Freely Associated States on May 21, 2019; the Secretary
of the Interior’s attendance at the annual Pacic Islands
Forum Partners Dialogue in 2018 and 2019; Secretary
of Veterans Aairs Robert Wilkie’s attendance at the
inauguration of Micronesian President Panuelo in
July 2019; and Secretary Pompeo’s historic visit to the
Federated States of Micronesia in August 2019.
President Donald J. Trump stands with Australian Prime Minister
Scott Morrison during a review of an honor guard parade at the
State Visit arrival September 20, 2019, on the South Lawn of the
White House. (Credit: White House)
The Indo-Pacic region should be seen as a
region of dialogue and cooperation instead
of rivalry, and it should be seen as a region of
development and prosperity for everyone.
Prime Minister of Thailand
Prayut Chan-o-cha
June 24, 2019
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A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
In September 2019, the United States announced a new
$100 million “Pacic Pledge.” This assistance is in addition
to the approximately $350 million annually that U.S.
agencies invest in projects, assistance, and operations
to build a more prosperous future for the people of
the region. As part of the Pacic Pledge, USAID plans to
provide more than $62 million in new programs over the
next year, more than doubling development assistance
over prior years. This year, the United States also made
an initial grant to the Asian Development Bank’s (ADB’s)
Pacic Region Infrastructure Facility (PRIF) to support
infrastructure planning in the Pacic Islands. In addition,
USAID will expand its sta presence in Fiji, Papua New
Guinea (PNG), the Federated States of Micronesia, the
Republic of the Marshall Islands, and Palau.
The United States is broadening our close cooperation
with Australia and New Zealand in the Pacic and beyond
in such areas as infrastructure development in the Indo-
Pacic, joint operations countering illegal, unreported,
and unregulated shing, science and space collaboration,
and securing our critical mineral supply chain. These
partnerships magnify our impact on improving access for
Pacic Island nations to high-quality, resilient development
of their economic and natural resources. On September
27, the United States announced that we are contributing
$23 million to the Papua New Guinea Electrication
Partnership (PEP) with Australia, Japan, and New Zealand,
following through on the commitment made by Vice
President Pence at APEC in 2018. The PEP seeks to connect
70 percent of PNG’s population to electricity by 2030, up
from 13 percent today.
The key to progress was individual, like-
minded sovereign nations acting together
with enlightened self-interest…it was the
principled actions of nation states, most
often led by the United States, binding
together the liberal democracies of the
western world.
Prime Minister Scott Morrison
September 23, 2019
Secretary Pompeo met with Foreign Minister Pradeep Gyawali of Nepal, highlighting the enduring strength of the U.S.-Nepal partnership and
the close people-to-people ties that form the foundation of the relationship. December 18, 2018. (Credit: U.S. Department of State)
12
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
The United States is also increasing bilateral
engagement with South Asian partners. We are helping
Sri Lanka, Bangladesh, and Maldives equip and train
their navies and coast guards to safeguard strategic
sea lines of communication, combat human tracking,
prevent illegal shing, disrupt drug smuggling, and
respond to natural disasters. Piracy and thefts have
dropped by 70 percent in the Bay of Bengal thanks to
the Bangladesh Navy and Coast Guard utilizing boats
procured under various U.S. programs as well as U.S.
training.
We have helped United Nations (UN) peacekeeping-
contributing states like Bangladesh and Nepal
become more eective by providing equipment, such
as the Unmanned Aircraft System we transferred
to Bangladesh, and by providing training for these
partners’ senior military ocers at American
professional military education schools.
The United States is enhancing the counterterrorism
capacity of our South Asian partners through hands-on
investigative assistance, such as the deployment of FBI
investigators to Sri Lanka after the ISIS-inspired terrorist
attacks on Easter Sunday, as well as helping to prevent
attacks through enhanced border control processes and
technology in countries like Bangladesh and Maldives.
Following the Maldives’ election last year that brought to
power a reform-oriented leader committed to rebuilding
the country’s democratic institutions, we mobilized $23
million in foreign assistance to encourage the country’s
anti-corruption, rule of law, and counterterrorism
agenda.
These and other engagements highlight the importance
the United States places on South Asian partners’
political autonomy and their role in an inclusive Indo-
Pacic vision.
Deputy Secretary of State John J. Sullivan, in an historic rst, meets with Foreign Minister Tandi Dorji at the Ministry of Foreign Aairs
in Bhutan. August 12, 2019. (Credit: U.S. Department of State)
13
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
M
arket-based economic systems, private sector
nance, and open investment environments have
driven the Indo-Pacic region’s prosperity. In the
developing world, the private sector supplies nine of ten
jobs, and foreign direct investment exceeds development
assistance by a factor of ve to one.
iii
State-directed
nancing, by contrast, is more limited and often comes
with strings attached.
The United States believes that the role of government is
to enable free enterprise while protecting individual rights
and empowering people. We respect the sovereignty
of every nation, and our economic engagement seeks
to equip states to resist coercive economic practices,
unsustainable debt burdens, and other dangers. We do
this by improving market access and competitiveness,
facilitating business-to-business ties, and promoting free,
fair, and reciprocal trade.
At the inaugural Indo-Pacic Business Forum in July 2018,
Secretary of State Mike Pompeo, Secretary of Commerce
Wilbur Ross, Secretary of Energy Rick Perry, U.S. Agency
for International Development Administrator Mark Green,
and other senior U.S. ocials launched new initiatives
to catalyze private sector investment in Indo-Pacic
infrastructure, energy markets, and the digital economy.
To date, support has included $2.9 billion through the
Department of State and USAID for the economic pillar of
the Indo-Pacic strategy since the beginning of the Trump
Administration, and hundreds of millions more through
other agencies, including the U.S. Millennium Challenge
Corporation (MCC) and the Overseas Private Investment
Corporation (OPIC).
The U.S. government is deploying new and innovative
mechanisms to improve market access and level the
playing eld for U.S. businesses. The U.S. International
Development Finance Corporation (DFC), created by the
Better Utilization of Investments Leading to Development
(BUILD) Act in 2018, will be at the forefront of this eort
with $60 billion in development nancing to attract more
private sector investment into emerging markets (see
page 16).
USAID is another major contributor to business
environment development, with longstanding programs
to improve regulatory and economic practices. USAID is
expanding programs focused on Indo-Pacic trade and
competitiveness to help reduce barriers to market entry,
strengthen regulatory capacity, improve private sector
competitiveness, and increase trade.
In 2019 alone, USAID launched new trade and
competitiveness activities in countries including
Bangladesh, Burma, Laos, Mongolia, and the Philippines.
These programs build o of USAID’s recent successes. For
example, in September 2019, USAID supported Puerto
Princesa City in the Philippines in attracting $540 million
worth of commercial investment pledges in tourism,
food, agriculture, sheries, and education. In Timor-
Leste, USAID helped the customs authority cut clearance
times in half at a seaport in Dili, and move the customs
authority toward compliance with international standards
required for accession to organizations such as the World
Customs Organization, the World Trade Organization,
and ASEAN. In Vietnam, USAID’s new trade facilitation
program will build the capacity of Vietnam’s customs
department to comply with global trade norms, reducing
the time and cost of trade.
MCC, which delivers results-oriented development
assistance based on core principles of good governance,
country ownership, and transparency, has granted some
$2.3 billion to Indo-Pacic nations since 2004. MCC signed
a $350 million compact with Mongolia in July 2018 and
nalized a $480 million compact with Sri Lanka in April
2019 that is pending Sri Lankan cabinet approval. MCC
is currently developing compacts with Timor-Leste and
Indonesia and a threshold program with the Solomon
Islands.
The U.S. Department of the Treasury has established
frameworks with Ministries of Finance in Japan, South
Korea, and Singapore to strengthen capital markets.
FACT
After USAID supported Vietnam’s reform
of over 180 commercial laws and regulations,
Vietnam’s competitiveness ranking in the World
Bank’s “Doing Business” report rose from 82nd
in 2017 to 68th in 2018.
Enhancing Economic Prosperity
14
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
These entities will also work to address legal, regulatory,
and institutional barriers to private investment in
countries across the Indo-Pacic region.
The U.S. Department of Commerce is at the forefront
of U.S. eorts to build business ties in the region.
The Department’s Access Asia outreach program, which
connects American rms with commercial opportunities
in Indo-Pacic markets, has engaged more than 1,000 U.S.
companies since 2018. The Department’s largest annual
domestic conference, Discover Global Markets, further
strengthened Indo-Pacic business connections. Trade
Winds, the largest U.S. trade mission of 2019, brought 100
U.S. companies to India and Bangladesh. Trade Winds will
return to the Indo-Pacic in 2020, stopping in Hong Kong,
South Korea, Japan, Vietnam, and Thailand.
The United States Congress conrmed a board for the
Export-Import Bank of the United States (EXIM) in May
2019, restoring the full range of EXIM programs to address
the nearly $40 billion pipeline of potential U.S. export deals
estimated to support almost 230,000 U.S. jobs. Supported
by these eorts, U.S. exports in goods and services to the
Indo-Pacic region reached $720 billion in 2018, up 4.5
percent from 2017. In November 2019, EXIM and Japan’s
Nippon Export and Investment Insurance (NEXI) are
expanding their existing co-nancing agreement to include
diverse products and facilitate joint U.S.-Japan nancing of
liquied natural gas (LNG) shipments to the Indo-Pacic
region.
We are also continuing eorts to promote free, fair, and
reciprocal trade. In October 2019, the United States and
Japan signed the U.S.-Japan Trade Agreement and the
U.S.-Japan Digital Trade Agreement. Under the U.S.-Japan
Trade Agreement, Japan will eliminate or reduce taris
on approximately $7.2 billion in U.S. agricultural exports.
Once this agreement is implemented, over 90 percent
of U.S. agricultural imports into Japan will be duty free or
receive preferential tari access. The U.S.-Japan Digital
Trade Agreement includes high-standard provisions that
ensure data can be transferred across borders without
restrictions, guarantee consumer privacy protections,
promote adherence to common principles for addressing
cybersecurity challenges, and support eective use of
encryption technologies. The agreement will boost the
already approximately $40 billion worth of digital trade
between the United States and Japan.
In September 2018, the Oce of the U.S. Trade
Representative (USTR) also nalized renegotiation of the
Korea-U.S. Free Trade Agreement (KORUS) to protect
jobs in America’s auto industry, increase U.S. exports, and
eliminate burdensome regulations.
iv
In July 2018, the United States granted Strategic Trade
Authorization Tier 1 status to India, enabling American
companies to export more high-technology items under a
streamlined process. This regulatory change will enhance
the bilateral defense trade relationship and increase the
volume of U.S. exports to India. Approximately $9.7 billion
worth of licensed exports to India over the previous seven
years may now be eligible for export under this license
exception.
v
We work closely with our partners to reduce trade barriers
for companies, boost exports, and support job growth
through regional and global arrangements, including APEC,
the region’s premier economic forum.
On November 4, 2019 on the sidelines of the East Asia
Summit, the U.S. government co-hosted the second
President Trump participates in a trade agreement signing
ceremony with Japan Prime Minister Shinzo Abe. Private-sector
led growth is key to the region’s future. September 25, 2019.
(Credit: White House)
FACT
Financing from the OPIC is supporting up to
100,000 microloans in rural communities across
Burma, where borrowers are often forced to
accept high interest rates from informal lenders
or pawn their land and other assets for capital.
15
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
Indo-Pacic Business Forum in Bangkok, Thailand, in
partnership with the Royal Thai Government, the U.S.-
ASEAN Business Council, the U.S. Chamber of Commerce,
and the Thai Chamber of Commerce. This advances the
U.S. government’s commitment to focus American private
sector attention on the dynamic and diverse economies
of the Indo-Pacic region. Government and business
leaders from the United States, Thailand, and across the
Indo-Pacic discussed commercial opportunities, the
digital economy, energy, infrastructure development,
access to capital, and U.S.-Indo-Pacic partnerships. The
Forum showcased high-impact private sector investment
and government eorts to support market competition,
job growth, and high-standard development for greater
prosperity in the Indo-Pacic.
INFRASTRUCTURE
The United States supports the development of
infrastructure in the Indo-Pacic region that is physically
secure, nancially viable, economically sustainable, and
socially responsible. This is the sort of infrastructure
that we and our partners have fostered in the region
for 70 years. Through foreign assistance, diplomacy,
and international nance institutions such as the World
Bank and ADB, we have been facilitating infrastructure
projects across the Indo-Pacic for decades. We have
promoted investment, innovation, market-based growth,
and transparent policies that have helped spur economic
growth, while also underwriting regional security.
Today, we are deepening our work with partners to ensure
that new infrastructure knits the peoples of the region
together and adheres to high standards of transparency
and sustainability. We believe that infrastructure should
benet, not bypass, local stakeholders.
In July 2018, the United States launched the Infrastructure
Transaction and Assistance Network (ITAN). ITAN
catalyzes private sector investment by optimizing U.S.
development nance and assistance tools, including
project preparation services and commercial advocacy.
It strengthens partner countries’ project evaluation
processes as well as regulatory and procurement
environments.
Since ITAN’s launch, the United States has improved public
nancial management and provided training on arbitral
awards in the Maldives; helped strengthen the legal and
regulatory framework for infrastructure in Bangladesh and
Nepal; supported the Philippines’ ambitious infrastructure
development strategy; advised Vietnam on its Power
Development Plan, including how to attract private
investment; executed workshops in Vietnam and Indonesia
on best practices in transportation planning, nancing, and
maintenance of Public-Private Partnerships (PPPs); and
worked to improve proposal solicitation and infrastructure
procurement transparency across the Indo-Pacic.
The United States launched a new Transaction Advisory
Fund (TAF) under ITAN in September 2019. The TAF
helps partners assess the nancial and environmental
impacts of potential infrastructure projects. TAF services
range from legal support to contract negotiation,
sustainability analysis, and proposal evaluation. TAF can
save our partners billions on infrastructure deals that may
otherwise have hidden costs buried in opaque contracts.
To further these eorts, the United States is modernizing
our development nance capabilities. As President Trump
stated in Danang, Vietnam, in 2017 when outlining the
U.S. vision for a free and open Indo-Pacic: “We are
also committed to reforming our development nance
institutions so that they better incentivize private sector
investment in your economies, and provide strong
alternatives to state-directed initiatives that come with
many strings attached.”
Created by the BUILD Act in October 2018, the U.S.
International Development Finance Corporation (DFC)
combines and augments the authorities of OPIC and the
The impressive growth of Vietnam Airlines is accentuated as a
crew lands their rst Boeing 787 Dreamliner, the most fuel-
ecient and cost eective twin-aisle airplane in the industry.
August 15, 2019. (Credit: Vietnam Airlines)
16
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
USAID Development Credit Authority. It more than doubles
the U.S. government’s development nance capacity to
$60 billion and equips DFC with new tools, such as the
ability to make equity investments and fund feasibility
studies, that make DFC better equipped to “crowd in”
private sector resources to address development and
foreign policy priorities.
Together with other U.S. agencies, DFC will support
projects that the private sector might not otherwise
nance on its own. It will work across agencies to deploy
loans, loan guarantees, and political risk insurance for
projects that adhere to high standards and are nancially
viable. DFC will ensure that contracts are transparent,
nancing is sustainable, economic and social impacts
are properly assessed, and projects contribute to local
communities. DFC advisors deployed across the Indo-
Pacic region aim to generate as much as $12 billion in
new private sector investment over ve years.
DFC will play a leading role in a new international eort
to certify high-quality infrastructure. This innovative
platform, called the Blue Dot Network, will bring together
governments, companies, and civil society organizations to
provide a globally recognized seal of approval conrming
high standards in infrastructure and adherence with
global best practices. The Blue Dot Network builds on a
powerful set of cooperative arrangements established in
2017 between the development nance institutions of the
United States and other high-standard partners, including
Japan, Australia, Singapore, Canada, and the European
Union.
In 2018, the United States signed a trilateral agreement
on development nance cooperation with Japan and
Australia. This trilateral partnership is supporting a ve-
country electrication partnership in Papua New Guinea
and scoping prospective projects in the energy, digital,
and transportation sectors of several Southeast Asian and
Pacic Island countries.
The U.S. Trade and Development Agency (USTDA)
is deploying advisors to identify new opportunities for
U.S. companies while also expanding USTDA’s Global
Procurement Initiative. The establishment of sound
procurement policies and practices is fundamental to
ensuring a fair and level playing eld in international
tenders. Transparent procedures for awarding contracts
for goods and services establish accountability and
encourage cost-eective use of public funds, which
facilitates dependable, stable, and ecient markets. This
is important in developing countries, where government
spending can account for up to 20 percent of gross
domestic product (GDP).
The Commercial Law Development Program (CLDP)
is building partner governments’ capacity in developing
public-private partnerships, drafting model contracts,
soliciting competitive tenders for infrastructure projects,
evaluating bid proposals, and implementing projects in
a transparent and accountable manner. It consults with
partners on transparent and open policies related to
telecommunications, data, and commercial transactions,
helping to create eective and reliable political,
commercial, and legal institutions that are critical to
fostering attractive environments for businesses.
The United States is sustaining its commitment to
regional development through ADB. The United States is
a founding member and major contributor to ADB, and
FACT
According to fDi Markets, U.S. businesses
announced 1,022 greeneld investment projects
in the Indo-Pacic region in 2018, an increase
of nearly 23 percent from 2017.
THE BLUE DOT NETWORK
The U.S. government, led by agencies including
OPIC, is coordinating the launch of the Blue Dot
Network (BDN) – a multi-stakeholder initiative that
will coalesce like-minded governments, the private
sector, and civil society under shared standards of
global infrastructure development. By providing
a globally recognized seal of approval signifying
adherence to high standards, the program will
promote market-driven, transparent, and nancially
sustainable infrastructure projects.
17
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
in June 2019, USAID launched a partnership with ADB to
mobilize $7 billion of investment for energy projects in
the Indo-Pacic.
vi
Additional information on U.S. government tools to support
American companies as they compete for infrastructure
projects abroad can be found at: https://2016.export.gov/
indopacic/itan/
ENERGY
The International Energy Agency projects that the Indo-
Pacic region will account for approximately 60 percent
of global growth in energy demand by 2040, requiring
more than $1 trillion in annual energy infrastructure
investment. To meet this demand while integrating
renewable energy sources, countries need access to
abundant, aordable, sustainable, and reliable energy;
diverse sources; and safe trade routes. U.S. resources
and technical expertise are an important driver of Indo-
Pacic energy security. In 2018 alone, nearly 30 percent
of all U.S. energy exports, totaling $50 billion, went to the
Indo-Pacic region.
At the 2018 Indo-Pacic Business Forum, the United
States launched Asia EDGE, a whole-of-government
eort to support energy security, catalyze private sector
investment in energy markets, and help partners set
transparent, market-based energy policies.
Asia EDGE and related programs build on longstanding
U.S. energy technical assistance in the region. These
programs have mobilized $806 million in public and
private investment across 11 renewable energy projects
in Indonesia, including developing its power grid and
rst wind farm, and helped the Indonesian government
integrate energy conservation targets into its 20-year
electricity general plan. They have helped increase
the capacity for cross-border electricity trade between
Bangladesh, Bhutan, India, Nepal, and Sri Lanka. Asia
EDGE worked with regulators to draft Nepal’s Energy
Regulatory Commission Act, which facilitates energy
sector regulation. It also supported the adoption of
exible resources, such as gas and batteries, needed to
integrate renewables through the U.S.-India Clean Energy
Finance Task Force.
In Bangladesh, the United States supported the
commission of a 300MW power plant in Pangaon, the
commission of Texas-based Excelerate Energy’s two
oating storage and regasication units, the rst LNG
import facility in the country, and the signing of a GE
joint venture to construct a 583MW combined cycle gas
power plant that will supply electricity for 22 years to
approximately 700,000 homes. In Southeast Asia, Asia
EDGE supported Vietnam’s award of the $3 billion Son
My LNG import terminal and associated Son My 2 2.2
GW combined cycle gas power plant project to Virginia-
based AES Corp. U.S. programs in Vietnam also helped
create an enabling environment for solar investment that
has contributed to a massive increase in solar energy
production over the past two years, from less than two
percent of the country’s power generation to over 10
percent.
On the sidelines of ASEAN and related ministerial
meetings in Bangkok in August 2019, the United States
announced $29.5 million to support Mekong countries’
energy security and electricity access through the
U.S-Japan Mekong Power Partnership (JUMPP).
vii
As
Secretary of State Mike Pompeo and Japanese Foreign
Minister Taro Kono stated, “The Partnership will promote
economic growth in Cambodia, Laos, Myanmar, Thailand,
and Vietnam, through free, open, stable, rules-based
regional electricity markets.” It will also contribute to
theACMECS.
Other joint energy investment includes the Japan-U.S.
Strategic Energy Partnership,
viii
which has supported
projects such as the $1.5 billion Jawa 1 gas-red power
plant in West Java, Indonesia. Jawa 1 uses GE gas turbines
and also includes Japanese rms Marubeni and Sojitz,
Tommy Long, U.S. Army Corps of Engineer’s resident engineer,
briefs ocials from Mekong countries about a local project on
the Tennessee River in Chattanooga, Tennessee during an expert’s
exchange visit. June 12, 2019. (Credit: USACE)
18
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
South Korean rm Samsung, and nancing from the
Japanese government and the ADB.
USAID’s 2019 partnership with the ADB to mobilize $7
billion of energy investments for projects in Asia and the
Pacic seeks to boost the capacity of clean energy systems
by six gigawatts and increase regional energy trade by
10 percent over the next ve years. This agreement will
promote energy eciency, energy sector reform, and
good governance of the Indo-Pacic’s energy sector. It
complements eorts such as USAID’s “Green Invest Asia,”
which aims to mobilize $400 million of private nance
into sustainable commodity production by 2022. “Green
Invest Asia” targets a reduction of 25 million tons of CO2
equivalent greenhouse gas emissions.
These eorts build on the productive history of U.S.
energy engagement in the Indo-Pacic. In Thailand, for
example, Chevron was the rst company ever granted
oil-exploration rights, and in 1973 it discovered the rst
hydrocarbons in Thai waters. This gave birth to a major
national industry. Today, Chevron is Thailand’s top natural
gas and crude oil producer, and its investments support
more than 200,000 jobs. In Singapore, ExxonMobil has
been operating for more than 125 years and is one of the
largest foreign investors with more than $18 billion assets
in the country. ExxonMobil owns and operates a 592,000
barrel per day renery, which is integrated with the
Singapore Chemical Plant. Together, they are ExxonMobil’s
largest integrated manufacturing site in the world.
DIGITAL ECONOMY
The internet and digital economy have spurred
tremendous economic growth and improved living
standards around the world. The Indo-Pacic is home
to some of the most connected and technologically
sophisticated economies on the planet. One major
challenge over the next decade will be to maintain
open and interoperable cross-border data ows while
protecting the digital economy from cybersecurity threats.
Online data will be massively expanded by growth
in “internet of things” devices, while fth-generation
“5G” telecommunications will empower new critical
infrastructure, including autonomous vehicles and smart
electricity grids.
To meet the challenges of a digitally connected world, the
United States promotes an open, interoperable, secure,
and reliable internet. We urge all countries to take a
risk-based approach to evaluating technology vendors,
including those that might be subject to control by or the
undue inuence of foreign powers.
We coordinate with such like-minded partners as
Australia, Japan, the Republic of Korea, New Zealand,
Singapore, and Taiwan to support this objective. For
Indonesia’s rst commercial-scale wind farm was inaugurated in Sulawesi in 2018 with $120 million in nancing from OPIC. (Credit: OPIC)
19
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
example, the United States and more than 30 like-minded
partners attended the May 2019 Prague 5G Security
Conference, resulting in a series of recommendations
called the Prague Proposals on how best to design,
build, and administer secure next-generation wireless
networks.
The Digital Connectivity and Cybersecurity Partnership
(“Digital Partnership”), launched at the 2018 Indo-
Pacic Business Forum, is a whole-of-government
eort to help partners access the digital economy and
deploy open and secure information communications
technology. By catalyzing sustainable and secure private
sector investments, promoting regulatory reforms, and
encouraging adoption of cyber security best practices,
this initiative enables nations to realize the tremendous
economic benet of the digital economy.
Digital Partnership programs include advocacy, training,
and software platforms to protect data privacy through
an interoperable regulatory system; digital skills-building
for small and medium-sized enterprises; technical
assistance and advisory support on information and
communication technology (ICT) policy for ministries and
regulatory bodies; capacity building for civilian and private
sector stakeholders on cyber security; and workshops
to strengthen commercial and international technology
industry standards. The Digital Partnership also engages
with industry directly and promotes U.S. exports through
reverse trade missions, technology-focused seminars,
and trade shows that bring together telecommunication
providers, government ocials, and U.S. experts.
The United States has several programs focused
specically on ASEAN, the world’s fastest growing internet
region with nearly 4 million new online users every
month. The Digital Partnership, for example, supports
online commerce and digital services in the ASEAN
President Trump and Singapore Prime Minister Lee Hsien Loong discussed regional trade and deepened bilateral cooperation during
a meeting in New York City. September 23, 2019. (Credit: White House)
FACT
Indonesia’s rst commercial-scale wind
farm, inaugurated in Sulawesi in 2018, was
developed by the private Colorado-based
company UPC Renewables with $120 million
in nancing from the U.S. OPIC. Today,
70,000 Indonesian households are able to enjoy
clean, aordable, reliable power as a result of
this public-private partnership.
20
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
Economic Community and technical assistance for policy
makers from ASEAN member states.
The U.S.-ASEAN Smart Cities Partnership, announced
by Vice President Mike Pence in Singapore in 2018,
is spurring American investment in the region’s
digital infrastructure by helping cities use data-driven
technology to innovate and manage municipal resources.
President Trump meets the leaders of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia, the rst time all
three Freely Associated States leaders have been hosted together at the White House by a U.S. President. (Credit: White House)
More than 385,000 Cambodian, Vietnamese, and Filipino women
are expected to benet from an $8 million Women’s Livelihoods
Bond guaranteed by USAID. The bond will provide the women
with access to credit, market linkages, and aordable goods and
services to help their companies grow. (Credit: FINTRAC INC)
School teacher Lolita Singahan no longer needs to take a
grueling, six-hour trip to withdraw her salary from the bank
since using mobile banking, an initiative pioneered by USAID in
partnership with the private sector in the Philippines.
(Credit: USAID)
21
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
A
mericans believe in the vision of a world of
open societies and free markets. We believe in
fundamental freedom of conscience, religion,
speech, and assembly. Our foreign policy is predicated
on the belief that the world would be safer and more
prosperous if all people were free to achieve their greatest
potential within pluralistic systems governed by equal
treatment under the law.
We believe rmly in an Indo-Pacic composed of open
societies and open markets. We support citizen-responsive
governance and light-touch regulation that fosters
entrepreneurship and the ecient allocation of capital,
and institutions that promote transparency, fairness,
and the sanctity of contracts. We urge all nations to join
us in upholding norms that are open to all and ensure
opportunity for all.
Where we have serious concerns about the way nations
mistreat their citizens, we use a wide variety of policy
instruments to encourage progress. These include the
Foreign Corrupt Practices Act, the Global Magnitsky Act, visa
restrictions, and prohibitions under Leahy Laws on military
assistance to security force units that violate human rights.
U.S. companies are also held accountable to high standards
of transparency and ethical behavior in their economic
activities across the Indo-Pacic region and the world.
To address governance challenges across the Indo-Pacic
region, U.S. programs empower the region’s citizens and
civil societies, combat corruption, and build resilience
to foreign inuence that threatens nations’ sovereignty.
In November 2018, Vice President Pence launched the
Indo-Pacic Transparency Initiative, which focuses on
anti-corruption, scal transparency, democracy assistance,
youth development, media freedom, and protecting
fundamental freedoms and human rights. Our eorts
under the Transparency Initiative involve over 200
programs totaling more than $600 million since the
beginning of the Trump Administration.
At the November 2019 East Asia Summit, the United
States is announcing $68 million, including for a major new
regional governance program in the Pacic Islands and free
and fair elections in Burma. Other Transparency Initiative
programs have helped the government of Indonesia
improve responsiveness to public complaints, assisted
indigenous people displaced by a Chinese-Cambodian
hydropower dam, supported public outreach by the Sri
Lankan parliament through establishing a new, state-
of-the-art media center, and strengthened civil society
contributions to legislation in Nepal. The United States
is developing partnerships in governance priorities with
Australia, New Zealand, Japan, Taiwan, and others.
The Indo-Pacic region has steered an increasingly positive
course in terms of transparency, human rights, and
democratic values, but we have seen troubling signs of
backsliding. In Cambodia, the United States is concerned
about the dissolution of the main opposition party and the
abuses committed against many of its members as well as
others who have criticized the current government. We are
deeply concerned about the plight of ethnic and religious
minorities across the region, including the Rohingya
from Burma’s Rakhine State. The United States has spent
more than $669 million in humanitarian assistance to
support Rohingya refugees. We call on Naypyidaw to hold
accountable those who have committed serious human
rights abuses and create conditions conducive to the safe,
voluntary, dignied, and sustainable return of displaced
Rohingya.
The People’s Republic of China (PRC) practices repression at
home and abroad. Beijing is intolerant of dissent, aggressively
controls media and civil society, and brutally suppresses
ethnic and religious minorities. Such practices, which Beijing
exports to other countries through its political and economic
inuence, undermine the conditions that have promoted
stability and prosperity in the Indo-Pacic for decades.
We have called on the PRC publicly to halt its brutal
repression of Uighurs, ethnic Kazakhs, Kyrgyz and members
of other Muslim minority groups in Xinjiang. We urge that
the selection of religious leaders by the Tibetan community
be free of interference by the Chinese Communist Party.
With respect to Hong Kong, we have cautioned Beijing that
it must uphold its commitments to maintaining Hong Kong’s
autonomy and civil liberties under the 1984 Sino-British Joint
Declaration. We believe that freedom of expression and
peaceful assembly must be vigorously protected in Hong
Kong and across the Indo-Pacic region.
Vice President Pence’s speech to APEC leaders in
November, 2018, described U.S. eorts to uphold rule
of law, promote civil society, and strengthen transparent
and accountable governance as the “building blocks of
progress…and the bulwarks of independence.” No U.S.
approach to the Indo-Pacic region would be complete or
eective without them.
Championing Good Governance
22
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
T
he United States seeks to build a exible, resilient
network of like-minded security partners to address
common challenges. We share information and
build the capacity of security sector forces to respond to
transnational crime, protect the maritime domain, address
environmental challenges, and response collectively to
emerging threats. We also ensure that the U.S. military
and its allies maintain interoperable capabilities to deter
adversaries.
Our enduring commitment to the Indo-Pacic is
demonstrated daily by our presence in the region
with approximately 375,000 U.S. military and civilian
personnel assigned to the U.S. Indo-Pacic Command
(USINDOPACOM) area of responsibility.
We are continuing to strengthen this forward presence.
President Trump and Singapore’s Prime Minister Lee
Hsien Loong signed an update to the 1990 memorandum
of understanding (MOU) regarding U.S. use of facilities in
Singapore. This agreement allows continued U.S. military
access to Singapore’s air and naval bases and provides
logistic support for transiting personnel, aircraft and
vessels. It also extends the original MOU by 15 years.
An important focus within the Indo-Pacic strategy is
expanding security sector and law enforcement capacity
to counter transnational crime. This includes illicit
tracking; terrorism and violent extremism; cybercrime;
illegal, unregulated, and unreported shing; and other
crimes that cross national borders. In August 2019, we
expanded our partnerships to counter transnational
crime along the Mekong River. We also held the rst of a
three-part workshop series with ASEAN Regional Forum
(ARF) to address aviation security and information sharing,
building on our long history of cooperation with partners
in Southeast Asia to prevent and counter terrorism and
violent extremism.
Among the most urgent transnational threats are threats
in the cyber domain. The United States is increasing
support to our Indo-Pacic partners to defend their
networks and counter malicious cyber activities by the
Democratic People’s Republic of Korea’s (DPRK), the PRC,
Russia, and other state and non-state cyber actors that
seek to steal money, intellectual property, and other
sensitive information. The United States coordinates
with like-minded partners such as Australia, India, Japan,
and the Republic of Korea to build cyber capacity in the
Ensuring Peace and Security
USS Carl Vinson (CVN 70) arrived in Da Nang, Vietnam, for a scheduled port call, marking the rst time a U.S. aircraft carrier has visited
the country in more than 40 years. U.S. forces continue to y, sail, and operate wherever international law allows. March 5, 2018.
(Credit: U.S. Navy)
23
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
region. Our activities include helping countries develop
cyber strategies, policies, and legal frameworks; enhancing
incident response and network defense capabilities;
improving nancial sector cybersecurity to protect Indo-
Pacic economies; countering the use of the internet for
terrorists’ purposes; increasing cybersecurity awareness
in both the public and private sectors; and promoting
rule of law, privacy, internet freedom, and responsible
governance frameworks when considering cybersecurity
needs.
We are partnering with Singapore to improve cybersecurity
and stability in cyberspace in ASEAN member states,
including collaborative eorts within the region such
as adoption and implementation of regional cyber
condence building measures. The capstone of our
ASEAN engagement was the rst U.S.-ASEAN Cyber Policy
Dialogue in Singapore in October 2019.
The United States also works with partners on preventing
the spread of nuclear weapons and other dangerous
materials. Together, we counter DPRK proliferation
activities, enforce United States and UN Security Council
sanctions, build strategic trade control frameworks,
educate industry on their compliance obligations, and
strengthen the enforcement at key land, maritime, and
air ports of entry. We build capacity and raise awareness
on proliferation activities with governments, shipping
companies, shipboard personnel, and facility personnel to
ensure the safe and secure ow of legitimate international
trade.
To protect the maritime domain, we cooperate with
Indo-Pacic partners to maintain freedom of navigation
and other lawful uses of the sea so that all nations can
access and benet from the maritime commons. In the
South China Sea, we urge all claimants, including the PRC,
to resolve disputes peacefully, without coercion, and in
accordance with international law.
PRC maritime claims in the South China Sea, exemplied
by the preposterous “nine-dash line,” are unfounded,
unlawful, and unreasonable. These claims, which are
without legal, historic, or geographic merit, impose real
costs on other countries. Through repeated provocative
actions to assert the nine-dash line, Beijing is inhibiting
ASEAN members from accessing over $2.5 trillion in
recoverable energy reserves, while contributing to
instability and the risk of conict.
Over the past two years, we welcomed historic rsts in
our maritime cooperation. In May 2019, we participated in
the rst joint sail by U.S., Indian, Japanese, and Philippines
navies through the South China Sea. In September 2019,
we co-hosted with Thailand the rst U.S.-ASEAN maritime
exercise to strengthen relationships and information
sharing between the navies of ASEAN nations and the
United States. In 2018, we expanded the Southeast Asia
Maritime Law Enforcement Initiative. The 23
rd
edition of
the U.S.-Japan-India Malabar naval exercise in September
2019 demonstrated growing interoperability between
our navies as we work together to strengthen maritime
security in the Indo-Pacic.
Since the beginning of the Trump Administration, we have
provided more than $1.1 billion for Department of State
and USAID security cooperation in South and Southeast
Asia. This includes $356 million for programs such as the
Department of State’s Southeast Asia Maritime Security
Initiative (SAMSI) and the Bay of Bengal Initiative. These
programs provide training and equipment that enables
South and Southeast Asian countries to better detect
threats, share information, and respond collectively to
natural and man-made crises. Over the same period,
the Department of Defense’s Maritime Security Initiative
and “Section 333” funds provided nearly $250 million for
maritime security in the Indo-Pacic region to enhance
information sharing, interoperability, and multinational
maritime cooperation. We are providing new advisors to
enhance maritime security and defense reforms in the
Pacic Islands and develop cyber policy and governance
frameworks in Mongolia.
WildAid, USAID, and Thailand’s Department of National Parks,
Wildlife and Plant Conservation launch a campaign to reduce the
use of amulets made from endangered elephant and tigers called
“A good life is free of killing” in October 2019. (Credit: USAID)
24
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
To address environmental security, the United States
protects vulnerable ecosystems and helps partners
respond to natural disasters. Since 2012, for example,
USAID assistance has protected 64 million acres of forest
lands and coastal areas in Cambodia, Indonesia, and the
Philippines. We also support disaster response by building
search and rescue, disaster risk reduction, and logistical
support capabilities. We stand ready to help our partners,
as we did after an earthquake and tsunami in Sulawesi,
Indonesia in 2018 and Super Typhoon Yutu in Tinian and
Saipan in February 2019. Humanitarian assistance also
gures prominently in our largest annual military exercise,
COBRA GOLD, which this year included 29 countries from
across the region.
We take steps to clean up after past conicts. In November
2018, USAID supported Vietnam’s eorts to complete its
rst and largest-ever cleanup of dioxin contamination, a
byproduct of Agent Orange used by the U.S. military during
the Vietnam War. This was part of the $340 million the
United States has spent since 2012 to remediate explosive
remnants of war and improve conventional weapons
stockpile security in the region.
Addressing transnational crime, maritime security, and
environmental and humanitarian challenges are important
areas of focus under our Indo-Pacic strategy. However,
these eorts represent only a small subset of the work
U.S. security forces perform across the Indo-Pacic region
every day. We work with partners to prevent the spread of
nuclear weapons, protect the space domain, and address
other concerns around the world.
We especially recognize and support the impressive
contributions of Indo-Pacic countries to UN peacekeeping
missions, with Bangladesh, India, Indonesia, and Nepal
accounting for roughly 24 percent of global UN troop
contributions. We noted Vietnam’s rst deployment in
support of a UN peacekeeping mission in 2018. Through
this and other forms of cooperation, we are jointly tackling
pressing security challenges and fostering a stable and
secure future for the Indo-Pacic region and the world. The
Trump Administration has invested more than $54 million
to enable Indo-Pacic partners to deploy worldwide in
support of UN peacekeeping missions.
More information on U.S. defense contributions to security in
the Indo-Pacic can be found in the Department of Defense’s
June 2019 Indo-Pacic Strategy Report.
U.S. COAST GUARD ENGAGEMENT IN THE INDO-PACIFIC
The U.S. Coast Guard (USCG) has an enduring and specialized role in the Indo-Pacic. Working with maritime law
enforcement agencies, the USCG seeks to strengthen maritime governance to preserve sovereignty, share information
to facilitate regional force-multiplying partnerships, and demonstrate professional standards of behavior to reinforce
the rule of law at sea.
In the past year, the USCG deployed two National Security Cutters, STRATTON and BERTHOLF, to the Indo-Pacic
region. The vessels engaged in multilateral exercises, and the BERTHOLF made the rst visit by a U.S. cutter to the
Philippines in more than seven years.
USCG security cooperation activities include foreign military sales of response boats and cutter boats, participation in
multi-national security exercises, developing bilateral search-and-rescue and law enforcement agreements, hosting
ship-riders, and deploying training teams to build partner nation prociency. The USCG also transfers decommissioned
cutters via the Excess Defense Article program. Bangladesh integrated two Hamilton Class Cutters transferred by the
U.S. Coast Guard into its maritime eet, and Sri Lanka integrated a Hamilton Class Cutter in 2018 to augment their
Reliance Class Cutter received in 2004. Vietnam received its rst Hamilton Class Cutter in 2017 while the Philippines
has received three Hamilton Class Cutters since 2011. These vessels help partner nations maintain a high state of
operational readiness and protect their maritime resources.
25
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
Investing in Human Capital
T
he United States was founded on the idea that an
educated and empowered citizenry is a requisite
for freedom and prosperity. With the Indo-Pacic
accounting for over half the world’s population and 58
percent of the world’s youth, it is important to provide
people with skills and resources to participate in the global
economy and create conditions for self-reliance.
U.S. private sector investment directly supports more
than 5.1 million jobs in the Indo-Pacic region. Countries
in the region have faced challenges when foreign
companies fail to invest in the local workforce and care for
their communities. However, when companies practice
corporate responsibility and work with governments
to empower workers and communities, sustainable
economic growth follows. U.S. companies have invested
trillions to develop the skills, knowledge, and experience
of the local workforce through professional training and
development, investments in local infrastructure, and
improved competitiveness.
Thousands of U.S. companies operating in the Indo-Pacic
uphold a commitment to corporate responsibility and
bring their spirit of innovation and entrepreneurialism
to the region. Each year, the Secretary of State’s Award
for Corporate Excellence recognizes companies that
model high standards as responsible members of the
communities where they do business.
ix
Recipients include
Proctor & Gamble Asia Pacic, PepsiCo India, and Coca-Cola
Vietnam (see box, “U.S. Companies Build Human Capital”).
The U.S. government works alongside the private sector
to improve the lives and well-being of people across the
Indo-Pacic. Programs focused on people-to-people
exchange, science and technology, entrepreneurship,
education, technical training, and more are rooted in trust
and personal relationships.
U.S. government and private sector programs have helped
to bring the innovation of U.S. companies to the Indo-
Pacic region through programs in science, technology,
engineering, and mathematics (STEM). In August 2019,
Facebook partnered with USAID to open a STEM lab in
Vientiane in order to strengthen STEM training for Lao
U.S. Ambassador Sung Kim takes a photo with Young Southeast Asian Leaders Initiative (YSEALI) alumni at the 2017 YSEALI Summit in Manila.
This third annual YSEALI Summit brought together future leaders from Southeast Asian nations to discuss dynamic political, social, economic,
and environmental issues facing ASEAN. (Credit: U.S. Embassy Manila)
26
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
youth and fuel Laos’ nascent digital economy. Similarly,
Google is working on a program to train 100,000 Android
developers in Indonesia.
BUILD-IT (Building University-Industry Learning and
Development Through Innovation and Technology)
is an innovative partnership between USAID, Arizona
State University, and private businesses to help Vietnam
modernize its STEM programs in higher education.
x
Fourteen Vietnamese technology and engineering
programs and two partner universities have already
achieved international accreditation through BUILD-IT.
By 2020, the BUILD-IT Alliance expects to have led four
more universities and 46 academic programs through
the institutional accreditation process, benetting more
than 3,000 faculty and sta and 20,000 technology and
engineering students.
Alumni of U.S. government-sponsored exchange
programs demonstrate how investing in human capital
pays dividends. More than 100 current or former heads of
state and at least 360 current or former cabinet ministers
in Indo-Pacic countries participated in U.S. government-
sponsored exchange programs. With over 357,000 alumni
across the Indo-Pacic serving in inuential government,
academic, business, and civil society leadership roles, the
United States has a dynamic network of leaders prepared
to address shared challenges in the region.
While U.S. government programs such as the Fulbright
Program and the International Visitor Leadership Program
(IVLP) are global and predate the Indo-Pacic strategy,
they are fundamental to our vision of a free and open
Indo-Pacic. More than 4,500 Indo-Pacic students,
scholars, and professionals have participated in the
Fulbright Program and IVLP over the past two years. These
programs address important topics such as infrastructure
investment, energy policy, entrepreneurship, and civil
society development that are relevant to today’s Indo-
Pacic leaders.
From Myanmar to Samoa, the Peace Corps has
longstanding partnerships with numerous countries in
the Indo-Pacic region. Volunteers live and work alongside
U.S. COMPANIES BUILD HUMAN CAPITAL
With executive mentorship, exible parental leave, and childcare programs, consumer goods company Procter &
Gamble Asia Pacic’spolicies and programs construct a workplace that supports and empowers women leaders,
with women now holding half of the company’s manager positions across the Asia-Pacic region. In the Philippines,
P&G helps Filipino children live, learn, and thrive though its “Linis, Lusog” (or “Health and Hygiene”) program, teaching
3.5 million students to stay healthy and clean through proper handwashing. To support small and medium-sized
enterprises (SME), P&G partnered with USAID and Coca-Cola Philippines to rehabilitate 1,030 sari-sari stores after
Typhoon Haiyan in 2013, piloted an SME Leadership College in 2015, and launched a sari-sari store mentoring program
in 2017 targeting 1,000 micro-enterprises.
PepsiCo India is invested in collaborating with 24,000 farmers to source sustainably in India. The company saved more
than 17 billion liters of water in 2017 through its community water programs. These focused on water replenishment
and conservation agricultural practices, such as direct seeding of rice and micro-irrigation.Under its Sustainable
Water Resource Development and Management program, PepsiCo India has replenished over ve billion liters of
water, benetting 60,000 community members.
As part of Coca-Cola’s “5by20” global initiative to empower 5 million women entrepreneurs, Coca-Cola Vietnam
established fourteen EKOCENTERs throughout Vietnam. The EKOCENTERs are community markets run by women
entrepreneurs that provide safe drinking water, solar power, internet access, and education space. Coca-Cola also
collaborated with USAID and the non-prot organization PACT on a Mekong Vitality project that helps women in the
Mekong Delta improve their nancial literacy.
27
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
their neighbors, learning the local language and culture and
sharing skills to help solve critical challenges in the areas
of health, agriculture, education, environment, community
economic development, and youth in development. On
October 18, 2019, the Peace Corps announced it will re-
establish its program in Solomon Islands, where more than
700 volunteers served from 1971 to 2000.
We place a high value on training and engaging young
leaders, who will shape the region’s future trajectory. Since
2013, the Young Southeast Asian Leaders Initiative (YSEALI)
has supported more than 5,000 emerging regional leaders’
participation in exchange programs or regional training
workshops, provided more than $1.6 million in grants to
youth-led community improvement projects, and engaged
142,000 young people through the YSEALI virtual network.
In addition, the Young Pacic Leaders (YPL) program
has forged strong ties with emerging leaders across 19
Pacic nations. YPL now has more than 150 alumni that
include diplomats, government ocials, teachers, non-
governmental organization (NGO) leaders, and journalists.
Language skills development is another core component
of U.S. support for human capital. English language
prociency enables Indo-Pacic partners to prot from
engagement with the global economy. Each year, the
Fulbright Foreign Language Teaching Assistant and English
Language Fellows programs develop and exchange
hundreds of high-quality English language speakers and
instructors across the Indo-Pacic region. In the past two
years, the English Access Microscholarship Program has
provided free, intensive English language instruction to
over 2,000 economically disadvantaged youths in the
region. More than 1,550 teachers from the Indo-Pacic
have participated in the English E-Teacher Program, and
over 66,700 enrolled in U.S.-sponsored Massive Open
Online Courses (MOOCs). These eorts fostered innovative
digital engagement, provided expert English teaching
for important audiences, and reached vulnerable youth
populations in the Indo-Pacic.
Many U.S. government programs provide training for
government ocials from partner countries and regional
HUMAN CAPITAL BY THE NUMBERS
The U.S. private sector and education system are major contributors to human capital development in the region:
■ 5.1 million jobs in the Indo-Pacic region supported by U.S. investment. Jobs with American companies come
with training and personal development opportunities.
■ 730,000 students studying in the United States are from the Indo-Pacic, accounting for more than two-thirds of
international students in America, while nearly 20% of Americans studying abroad go to the Indo-Pacic.
Additionally, in the past two years, U.S. government education and exchange programs have reached millions, with
thousands engaged directly in training:
■ More than 142,000 young people have engaged with the YSEALI through the virtual network and more than
5,000 young leaders have participated in YSEALI exchange programs or regional training workshops.
■ More than 72,500 Indo-Pacic students beneted from U.S. government-sponsored English language programs,
including 5,000 disadvantaged youth who enrolled in intensiveEnglish instruction and 67,500 students who took
Massive Open Online Courses (MOOCs).
■ 7 million young people participated in programs sponsored at U.S.-government sponsored American spaces
around the Indo-Pacic.
28
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
organizations. Such programs help partners develop smart
policies that enable economic growth and development.
For example, the Third Country Training Program (TCTP) is
a joint U.S.-Singapore eort to train ocials from ASEAN
member states (especially from the Mekong region) in the
areas of cross-border trade, environment, health, urban
planning, and disaster management. Since its founding
in February 2012, TCTP has organized 47 workshops
and trained over 1,200 people with a goal of promoting
connectivity, sustainable development, and regional
resilience among ASEAN countries. Additionally, over
430 Indo-Pacic government ocials have been trained
on best-value procurement and life-cycle cost analysis
under the U.S. Trade & Development Agency’s Global
Procurement Initiative.
On the security side, we train partners through initiatives
like the International Military Education and Training
Program and the Department of Defense’s Daniel K.
Inouye Asia-Pacic Center for Security Studies (DKI APCSS).
Over the past two years, 2,100 security practitioners
attended DKI APCSS courses and workshops.
The International Law Enforcement Academy (ILEA) in
Bangkok, a joint eort between the Royal Thai government
and the United States government, this year celebrated
its 20th anniversary. More than 15,000 graduates from
17 countries and two special administrative regions
have attended ILEA Bangkok’s law enforcement training
programs.
Moreover, the United States helps the poorest and most
vulnerable move toward self-reliance. We support long-
term economic growth and development in the Indo-
Pacic region through health, basic education, and Food
for Peace programs worth over $500 million per year.
The above is a small sample of training and education
oered by the U.S. government and private sector
partners to people across the Indo-Pacic region, and does
not begin to capture the vast human capital and economic
impact of over 730,000 international students from the
Indo-Pacic who study in the United States each year.
Most U.S. support for human capital development in the
Indo-Pacic region is not directed or supported by the
U.S. government. It occurs when U.S. and Indo-Pacic
businesses, institutions, and people exchange views,
innovate, and explore in a free and open marketplace of
ideas. This approach fuels U.S. economic dynamism and
pervades our regional engagement. Our partnerships with
Indo-Pacic nations help them draw on the skills, talents,
and drive of over half the world’s population in order to
secure a more peaceful and prosperous future.
29
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
T
he U.S. government has taken many steps to meet
President Trump’s prioritization of the Indo-Pacic.
Since the start of the Trump Administration, the
Department of State and USAID have provided more
than $4.5 billion in foreign assistance to the region. In the
rst three years of the Trump Administration, we have
increased assistance to the region by 25 percent compared
to the last three years of the previous Administration,
representing a dedicated shift of resources to the Indo-
Pacic. This has been augmented by hundreds of billions
more in development nancing, investment by U.S. rms,
and other sources.
A key factor driving the U.S. investment in the Indo-Pacic
is the bipartisan support enjoyed for this approach among
lawmakers. The United States Congress demonstrated
its support for the priorities of the Indo-Pacic strategy
through the passage of the BUILD Act in October 2018
and the Asia Reassurance Initiative Act in December
2018. Congress has also returned a quorum to EXIM
and underscored the U.S. commitment to Taiwan’s
defense and international space, among other legislative
eorts. The Administration and Congress will continue to
work together to strengthen the whole-of-government
commitment to a free and open Indo-Pacic region.
For more than 70 years, the United States, along with our
allies and partners, has vigorously defended a free and
open environment based on principles that support the
rights of all nations, large and small. U.S. resolve to uphold
this free and open order is deep-rooted, and has only
grown stronger in the face of eorts to undermine it and
impose ties of hegemony and dependency in its place.
U.S. engagement across the spectrum of our interests has
never been stronger.
By joining with allies and partners to defend the principles
and values that made the Indo-Pacic region thrive, we
will ensure the region remains peaceful, prosperous, and
secure for decades to come.
Conclusion
30
A FREE AND OPEN INDO-PACIFIC: ADVANCING A SHARED VISION
i The Indo-Pacic strategy is the U.S. approach to strengthening the international order in line with the President’s vision
for a free and open Indo-Pacic region—a vision shared by our allies and partners. The strategy focuses on three pillars:
economics, governance, and security. This report outlines U.S. activities in each of the three pillars, covering longstanding
eorts as well as new programs that have been added since the launch of the strategy in November 2017. The report
builds on DOD’s June 2019 report by covering the eorts of the whole of U.S. government.
ii The United States actively participates in and supports ASEAN-centered institutions, including the U.S.-ASEAN Summit,
East Asia Summit (EAS), ASEAN Defense Ministers’ Meeting Plus (ADMM Plus), ASEAN Regional Forum (ARF), and the
Expanded ASEAN Maritime Forum (EAMF). We uphold the EAS as the premier leaders-led forum for strategic discussion
in the region, where we can discuss and make progress on pressing political and security issues.
iii https://www.csis.org/analysis/rethinking-private-capital-development
iv https://www.whitehouse.gov/briengs-statements/president-donald-j-trump-fullling-promise-united-states-korea-free-
trade-agreement-national-security/
v https://www.commerce.gov/news/press-releases/2018/07/us-secretary-commerce-wilbur-ross-announces-programs-
increase-us
vi https://www.adb.org/publications/united-states-fact-sheet#targetText=Established%20in%201966%2C%20ADB%20
has,a%20founding%20member%20of%20ADB
vii https://www.state.gov/joint-statement-on-the-japan-united-states-mekong-power-partnership-jumpp/
viii https://www.whitehouse.gov/briengs-statements/u-s-japan-joint-statement-advancing-free-open-indo-pacic-energy-
infrastructure-digital-connectivity-cooperation/
ix https://www.state.gov/winners-for-the-2019-secretary-of-states-award-for-corporate-excellence/
x https://www.usaid.gov/vietnam/documents/fact-sheet-building-university-industry-learning-and-development-through-
innovation
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