WHAT WOULD A BIDEN PRESIDENCY MEAN FOR US-EU TRADE RELATIONS?

Joe Biden in the White House would remove the threat of a US-EU trade war from the table, and open up new areas for co-operation. But the US and EU would still disagree on many issues, particularly how best to deal with China. 

 
The EU’s trade relationship with the US has suffered during the tenure of President Donald Trump. Trump’s obsession with bilateral trade deficits, and his perception that the EU takes advantage of the US, have led to him using national security concerns as an excuse to levy tariffs on EU steel and aluminium exports – while continually threatening to do the same to European cars. The EU’s response to Trump’s unorthodox trade policy has been to strike mini-deals (such as the recent decision to remove tariffs on American lobsters in return for the US reducing tariffs on cigarette lighters) where necessary, to avoid further escalation, but otherwise wait him out in the hope that someone more amenable will replace him.

A Joe Biden victory on November 3rd would vindicate the EU’s strategy and bring to an end the chronic economic uncertainty associated with Trump and his propensity to lash out with tariffs. A Biden presidency would offer an opportunity to re-set the US-EU trade relationship, and open up some new opportunities for productive co-operation. But the Biden approach may not be as pro-free trade as the EU would like, with protectionist rhetoric around Buy American provisions featuring prominently in his campaign. And the two powers would continue to disagree on many issues, particularly on how best to deal with China.

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Πηγή: cer.eu