Different Stance in Trade Issues
Ahead of the U.S. presidential election in November, an analysis has shown that trade pledges of the Democratic Party nominee Biden and President Trump share “America First” principle but are different when it comes to the environment and labor.
According to a report “Biden vs. Trump: A Comparison of Trade Pledges” issued recently by the Korea International Trade Association (KITA), the Biden’s “Made in America” and “Buy American” pledges represent “America First” policies, and they are not much different from those of the Trump administration.
The report says, “Hardline policies toward China are likely to continue even if Biden is elected,” adding, “If Biden, who has announced that he would respond to China by means of cooperation with allies, is elected, the conflict will escalate from the U.S. vs. China into multiple parties (the U.S. and its allies) vs. China.”
The biggest difference between the two candidates is environmental policy. Unlike President Trump, who withdrew the United States from the Paris Climate Accord in November last year and pursued environmental deregulation policies, Biden has promised to rejoin the Paris Agreement on “day one” of his presidency. In addition, Biden has a plan to impose a “carbon adjustment tax” on countries that fail to comply with environmental obligations by 2025. Therefore, eco-friendly policies are likely to emerge as a new trade barrier and expand into trade conflicts between developed and developing countries if the Biden administration is launched.
Also, unlike the Trump administration, Biden is taking a somewhat reserved position on the new trade agreement. The report said, “President Trump has initiated trade negotiations with Japan, the European Union (EU), India, Kenya, and the United Kingdom, and is using them as a political, economic, and diplomatic leverage, whereas Biden prioritizes the recovery of the domestic economy and will not proceed with new trade agreements right away.”
The report stated, “With the economic slowdown due to the aftermath of COVID-19 outbreak, the principle of protectionism is expected to continue regardless of the election results,” and pointed out, “Biden has expressed his negative view on the tariff measures under Section 232 and 301 of the U.S. Trade Expansion Act but it is uncertain whether the current measures will be withdrawn if he is elected.”
Seol Song-yi, a senior researcher at KITA’s Center for Trade Studies & Cooperation, said, “Biden’s trade policy is not significantly differentiated from President Trump, but the enhancement of environmental and labor standards traditionally emphasized by the Democratic Party may emerge as new trade issues,” and stressed, “As fierce competitions are expected to continue until the election day, Korean companies are required to thoroughly understand the trade pledges and dispositions of each candidate and be prepared for the changes after the election.”