Stephen Olson

Joe Biden’s push for sustainable trade will be a delicate balancing act

The president-elect is under pressure from Democratic Party progressives to adopt more stringent policies but must avoid erecting so many barriers for less-developed countries that trade liberalisation is stymied

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US President-elect Joe Biden participates in a virtual meeting with the US Conference of Mayors at the Queen in Wilmington, Delaware, on November 23. Photo: AFP

Stephen Olson

Published: 1:30am, 5 Dec 2020Updated: 5:07am, 5 Dec 2020

Based on what United States President-elect Joe Biden has said about his approach to trade, and what policies we know his party’s progressive wing will push him to adopt, it is reasonable to wonder: will Biden be the first sustainable trade president?

Sustainable trade stipulates that trade needs to be pursued not only on the basis of economic gains; it must also strengthen social capital – for example, by ensuring high labour standards – and bolster environmental stewardship.

Biden’s position clearly tilts towards greater sustainability in trade policy. He is considering, for instance, imposing a carbon border fee on imports from countries deemed to have insufficiently robust climate policies. The potential scale and scope of what would essentially be a carbon tariff would be an unprecedented fusion of trade and environmental policy.

Biden administration negotiators would also apparently seek to embed emission reduction commitments into trade agreements. Countries that fail to live up to their climate obligations could be subject to trade sanctions. Again, an unprecedented move.

Of potentially greater importance, however, are the more stringent policies Biden will be under pressure to adopt from progressive elements within his party.

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