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, U.S. Trade Representative (USTR) Katherine Tai said in a Wednesday speech.
“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.”
Related story: USTR Tai Continues to Push Trade Policy Focused on Non-Tariff Barriers
Tai cited examples of new export opportunities for ag and other industries.
“We opened markets for U.S. rice, wheat, corn, shellfish, and beef exports to the EU,” she said, 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.
