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Friday, October 16, 2020

Biden's trade policy vs Trump administration.

 LOTS OF RHETORIC ABOUT BUY AMERICA, BUT NO SUBSTANCE

PROPOSES LOTS OF GOVERNMENT TAX CREDITS AND SUBSIDIES BUT NO NEW TRADE NEGOTIATIONS


Joe Biden has routinely criticized Donald Trump's trade policies. He advocates that disputes should be handled at the World Trade Organization and that any trade negotiations should focus on labor and environmental standards. His main strategy in his "Buy America", program is to enforce labeling rules as to country of origin and encourage through legislation more union ability to organize. He believes that Trade agreements should be large international deals rather than one on one negotiations between the United States and its trading partners. His plans can be viewed here: https://joebiden.com/made-in-america/#

He also discounts the use of tariff's as a negotiating tool as costing Americans with increased costs of imported goods. While this could be true in some instances, most exporters have either adjusted their currency value or subsidized their products in an effort to avoid losing market share.

Biden was an advocate of the North America Free Trade Agreement, recently replaced by the Trump administration. He still defends that trade deal.

Biden is still an advocate of a large Asia Pacific Trade Deal. This trade deal was rejected by the Hillary Clinton campaign and the Trump administration mostly because it takes the ability to control trade policy out of the hands of U.S. elected officials and places it in a international bureaucracy. Often these large foreign trade organizations take years to settle disputes and are often biased and open to the possibility of corruption in favor of those who offer the best bribes. The Trump administration has favored unilateral control of our trade policies.

Biden has been quoted as believing China is not an economic or military threat to the United States. His campaign has been financed to the tune of 100's of million dollars of corporate money by companies who favor the present trade policies with China.

The Trump administration has been successful in negotiating new trade agreements, with Mexico, Canada, Japan and South Korea also a partial deal with China. Negotiations continue with India, the E.U. Brazil and Argentina. It is expected that a deal will be negotiated with UK as soon as they have completed their negotiations with EU.

The policy of the Trump administration is Fair and reciprocal trade. This means if they have tariffs on U.S. products we will tariff their products. If they want complete tariff free trade we will reciprocate. Many countries have rules that protect their products, particularly their agricultural and food products. Most have tariffs on U.S. auto's but we have not placed tariff's on their auto's. These unfair trade deals were long overdue for renegotiation. Free but reciprocal trade will open up many opportunities for american companies and workers. One on One trade policies will give the United states quick and strong ability to control and enforce trade agreements.





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