US President-elect Joe Biden seems more assuring to the European Union, while his trade policy approach towards China may not witness much of a change. His attitude towards India may see reduced aggression compared to his predecessor, writes Dipesh Satapathy
Joe Biden’s win in the US presidential elections evoked positive response from domestic industry bodies, as expected, but most trade organisations and experts abroad feel the status quo in the US government’s trade policy will more or less continue, albeit with minor alterations.
Biden has pitched a $400-billion ‘Buy American’ plan for the government to buy items manufactured in the United States and has declared his commitment to uniting the economic might of democracies across the globe to counter abusive economic practices.
The EU
There is ample reason why Biden’s win has reassured leaders at the European Union (EU). In contrast to President Donald Trump, who referred to the EU as a rival that was established to take advantage of the United States, Biden has already received congratulatory messages from several top EU leaders. EU leaders and Trump generally did not hit it off, with Trump often complaining that his country was mistreated. Biden will reportedly seek to end ‘artificial trade wars’ with Europe”.
China
Though Biden’s win has offered prospects for some deviation in the course of the US-China trade war, which has not shown any signs of ending, it is widely perceived that the change in US leadership will not alter the overall direction of Washington’s China policy and the US government is expected to maintain its current approach towards China to some extent.
India
The United States is the largest apparel trading partner of India. Some experts believe that the problems being faced by India in its trade relations under the Trump regime would continue to a large extent under Biden although the aggression and unpredictability may go down. India is hoping for restoration of benefits for exporters under the Generalised System of Preferences (GSP) scheme ended by Trump or a roll-back in the unilateral application of penal import duties on aluminium and steel, the wait may be long.
