The Biden administration is writing “a new story on trade” that emphasizes cooperation with allies because countries such as China have abused open markets and low tariffs, said U.S. trade representative Katherine Tai on Wednesday. “It is clear today — even to many who are accustomed to a more traditional approach to trade policy — that we must adapt to the realities of today’s economies,” said Tai in a speech at American University in Washington.
“And in this new phase, we must confront the PRC’s [China] economic mercantilism,” said Tai, citing weak regulation and a thirst for low-cost materials for Chinese prominence in key industries. “The PRC continues to use unfair, distortive trade policies and practices in pursuit of harmful and anticompetitive industrial policy objectives.”
As a counterweight, the administration is bolstering U.S. competitiveness and working with partners to improve trade flows, she said. “That is the key theme of the Biden administration’s new story on trade — strengthening our cooperation with like-minded economies to forge a fairer and more sustainable future for our people.”
Tai sprinkled the speech to law students with examples of new export opportunities for agriculture and other industries. “We opened markets for U.S. rice, wheat, corn, shellfish, and beef exports to the EU,” she said, later pointing to agreements for increased ethanol exports to Japan and pork exports to India. Mexico agreed last year to remove trade barriers to U.S. potatoes. Non-tariff barriers “are real and can be more significant hurdles than tariffs,” Tai said. The Indo-Pacific Economic Forum is another arena for working on reducing non-tariff barriers.
Farm groups have faulted the Biden administration for not pursuing new trade agreements. “The United States of America has to play offense on international trade,” said Senate Finance Committee chair Ron Wyden in late March.
To read Tai’s speech, click here.