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By Woo Tae-hee
It has been three weeks since the Biden administration took office. The election-period tumult did not dissipate after the results came out. On Jan. 6, the two chambers were about to formalize Joe Biden's victory, when Congress was stormed by Trump followers unwilling to admit defeat.
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| Woo Tae-hee, executive vice chairman of Korea Chamber of Commerce and Industry (KCCI) |
This was the first time in 206 years that Capitol Hill suffered an attack, after British troops marched on Washington, D.C., in August 1814 and set fire to multiple government facilities including the Capitol building.
Donald Trump belatedly promised a peaceful transfer of power, but the House delivered its article of impeachment against him for the second time, setting the stage for a Senate trial set to begin in the week of Feb. 8. Donald Trump will thus be remembered as the first president in U.S. history to be impeached after leaving office.
Even in the shaky aftermath of the election, the Biden administration has been moving steadily to implement his campaign promises since his victory was certified. Among Biden's picks for his White House team and Cabinet, 12 out of 26 are women. With Rhode Island Governor Gina Raimondo as commerce secretary, and former Michigan Governor Jennifer Granholm as energy secretary, women are heading key economy-related departments of the new government.
An especially noteworthy nomination is that of Taiwanese American Katherine Tai as U.S. trade representative. The chief trade lawyer for the House Ways and Means Committee will be leading the new government's negotiations with China. She is the first Asian American woman to be nominated in this position. Fluent in Mandarin and well-versed in trade, Tai is expected to carry out the Biden administration's hardline policies towards China.
The U.S. now has a new leader, but its trade policy will probably remain unchanged in two aspects. The first element is China-bashing. Donald Trump's tough stance on China is his only policy that obtained bipartisan support from lawmakers, as well as from businesses and workers alike. The Democratic Party removed the "One China" language on its 2016 platform, and President Biden stated he would adopt a zero-tolerance approach towards China's unfair trade practices such as illegal subsidies, currency manipulation, cyber theft and intellectual property rights violation.
The second element is its "America first" approach. On Jan. 25, President Biden signed an executive order strengthening "Buy American" provisions, prioritizing the purchase of U.S.-made goods in public infrastructure projects. During the campaign, he had also called for a $400 billion, four-year increase in government purchasing of U.S.-made products and services. While he blamed Donald Trump's high-tariff policy for China's retaliation, ultimately harming American farmers and consumers, Biden also revealed his intention to maintain Section 301 and Section 232 tariffs, heralding a continuation of protectionist trade policies.
In other areas, however, President Biden is expected to undo most of Donald Trump's legacy. Whereas the latter leveraged bilateral negotiations to maximize benefits for the U.S., Biden will strive to restore the multilateral world order, respect international norms, strengthen ties with allies, reform the WTO and rejoin the CPTPP, among others.
Environmental protection will become even more crucial in the Biden era. Hours after being sworn in, President Biden signed an executive order reentering the U.S. into the Paris climate accord. The U.S. government will also dedicate $2 trillion in the next four years to a clean-energy transition and infrastructure building. If the U.S. starts implementing the carbon border tax by 2025, new trade tensions could arise with China, the world's greatest carbon emitter.
For Biden's supporters, his victory means a happy return to the respect for diversity in America. However it might not be the same for Korea. Free trade has led to increased international transactions and is expected to benefit Korea's trade balance, but the Biden administration will likely be as demanding as Donald Trump with regards to rebuilding the multilateral world order, WTO reform and response to climate change.
Korea has shown its potential as a global leader in the face of the current pandemic. Hopefully, it will be as well-prepared for a successful collaboration with the Biden administration.
The writer is executive vice chairman of Korea Chamber of Commerce and Industry (KCCI).
