Biden Trade Policy Remains Protectionist

The bicycle theory of trade holds that the “bicycle” must move forward or the rider will fall off: most nations will pedal on — negotiating bilateral, regional and, where possible, multilateral agreements — because a fall risked growth and international stability. So why has the United States fallen off the bike?

In this long-form commentary, Susan Ariel Aaronson describes “how the United States evolved from being the leading demandeur of rules-based multilateral trade...to a nation trying to create a new approach to trade agreements that do not rely on trading market access for other concessions.”

Aaronson says “the Biden administration deserves kudos for trying to put humans at the heart of trade, but criticism for the lack of openness in the process.” To put America back on the bike, “trade officials must find ways to reconcile different government priorities, will and expertise. That requires extensive consultations at home and abroad on a novel approach to trade.”

In this op-ed first published by The Globe and Mail, Michael Den Tandt takes a look back — at Canada’s diplomatic effort, led by the Privy Council Office seven years ago, to save the North American Free Trade Agreement — and asks if sleight of hand and a frozen grin can work a second time.

Looking ahead, “Can that ultimately successful effort be replicated, in the event Trump is re-elected this November and follows through on his promise to impose a 10 percent, across-the-board import tariff?” Den Tandt says that “the argument for failure, unsettling as it is, ignores something fundamental, which is that the material case for free trade in North America remains overwhelming and incontrovertible for the United States, as well as for Canada and Mexico.”

The right to repair — the freedom to take apart, modify and fix software-enabled devices — is gaining momentum globally. In Canada, the government announced plans in its March 2024 federal budget to begin right-to-repair consultations beginning this June, as a precursor to legislation, so Canadians will have the opportunity to share their views on the matter.

To kick-start this debate, Natasha Tusikov proposes an agenda drawing on three principles: first, the consultation should adopt a broad perspective on repair; second, the agenda should consider a wide range of products, including farming equipment, medical devices and military equipment; and third, the agenda should recognize that having the right to take things apart, and the tools needed to do it, means people can learn how things work and build skills that are foundational to innovation and knowledge.