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WASHINGTON: President-elect Joe Biden undoubtedly has plans to reverse many of President Donald Trump’s policies when he takes over the White House next month, but when it comes to trade, he has signaled that little can change, at least to the beginning.
In an interview with The New York Times published Wednesday, Biden, who defeated Trump in the presidential election last month, made it clear that his first job will be to revive the battered American economy, not radically change trade policy.
“I want to make sure that we are going to fight like hell by investing in America first,” Biden told the newspaper.
“I am not going to sign any new trade agreements with anyone until we have made large investments here at home and in our workers,” including education.
The remarks have important implications for America’s friends and foes alike, perhaps none more so than China.
Trump launched a trade war with Beijing amid complaints of unfair subsidies and theft of intellectual property.
A “phase one” agreement signed earlier this year eased tensions, and Biden’s comments indicate that he plans to stick with that agreement initially and will not end the tariffs imposed on Beijing.
Analysts say the comments show the incoming president understands the risk of disrupting Washington’s trade relations at a time when the economy is reeling from the damage inflicted by the COVID-19 pandemic, or of enraging the coalition of allies. interns who helped him win the election.
“In China, this is not a surprise,” Eswar Prasad, an economics professor at Cornell University, told AFP.
“Biden would have received huge pushback from the unions and China’s hawks in the Republican Party if he had removed the tariffs without demanding concessions from China.”
MAKING FRIENDS AGAIN
Trump’s erratic diplomacy left Washington alone in its dispute with Beijing, and Biden in the interview said he would immediately focus on repairing the barriers.
“China’s best strategy, I think, is one that puts all of our, or at least those who used to be, allies on the same page. It is going to be a top priority for me in the first weeks of my presidency. try to get us back on the same page with our allies, “he said.
He acknowledged that when it comes to “leverage” on Beijing, “we don’t have it yet.”
Improving relations with allies, particularly the European Union, would likely give Washington a stronger position to pressure China for more concessions.
Prasad said that Biden’s team “will receive a basis for trade and economic negotiations with China that is heavily skewed toward conflict rather than cooperation.”
“The new administration will introduce significant changes in strategy and tactics compared to the approach of the Trump administration, but the overall hostile stance towards China is likely to remain unchanged,” Prasad said.
Another key issue will be Biden’s approach to the EU, which was also affected by a series of tariffs under Trump, and is mired in numerous disputes with the US on issues ranging from the aerospace industry to digital taxes.
The regional bloc appears willing to cooperate: The Financial Times reported that Brussels is working on a plan to revitalize its partnership with Washington to address everything from stopping the pandemic to deforestation.
“I think the Biden administration will be willing to accept such an initiative,” said Edward Alden of the Council on Foreign Relations, noting that a digital tax deal could bring much-needed revenue to Washington.
But Biden’s comments also indicate that a new free trade deal Britain has wanted from Washington after Brexit won’t happen anytime soon.
