Joe Biden’s trade policy promises to be tough but within the rules

Katherine Tai, nominee for the post of United States Trade Representative, during her hearing before the Senate Finance Committee, in Washington, on February 25, 2021.

The senator from the agricultural state of Iowa who is concerned about milk exports to Canada, the senator from Idaho about the restrictions imposed by Mexico on potato imports, and the senator from New Jersey about tariffs on European agri-food products that affect its restaurateurs, and the Michigan senator for the shortage of semiconductors in the automobile …

The hearing, Thursday, February 25, by the Senate of Katherine Tai, candidate nominated for the post of trade representative of the United States, proved to be a reflection of America today: quick to be indignant against the unjust barriers imposed on American exports, denouncing the unfair practices of China and the protectionism of those who intend to tax the digital behemoths, starting with France. When you’re a republican, it’s the “Make America great again” (“Make America great again”) by Donald Trump that applies; when you are a democrat, the “Build back better” (“Build back better”) by Joe Biden. The same policy, although that of the second is supposed to be “Smarter and stronger”, according to Democrat Ron Wyden, chairman of the finance committee.

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The American consensus aims to put the worker back at the center of trade policy, “And not just the consumer”, as pointed out by Mme Tai. The candidate buried happy globalization, confirming the Democratic shift, after that of the Republicans in the Trump era. “We have long been on the line that the more we trade, the more we liberalize and the more peace and prosperity we have. It’s not always the case. There is very often a race to the bottom, which pushes us to rethink our trade policy ”said Katherine Tai, who wants the number of trade policy winners to increase.

“A formidable competitor”

This strategy explains the caution of Joe Biden, who adopted, in the two weeks following his inauguration, on January 20, about thirty decrees, but none on trade. What was described as unbearable under Mr. Trump is becoming consensual with Mr. Biden. The worker does not want to quarrel with blue collar workers and unions, by lifting tariffs imposed when Mr. Trump was in the White House. Its priority concerns internal affairs, in particular its stimulus plan of 1,900 billion dollars (1,560 billion euros), and there is no point in wasting political ammunition on trade for the time being. In addition, Biden believes he needs to talk to his allies before tackling China head-on.

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