Japan keeping close eye on Biden’s trade policy
Changes in U.S. trade policy will be a focal point for Japan if Joe Biden, the Democratic presidential nominee, wins the election. Biden served as vice president in the Obama administration, which pushed for the Trans-Pacific Partnership.
However, with domestic industry a clear priority in an effort to gain the support of the working class, many believe that he will continue Trump’s policies on trade, including for the auto industry.
The Democratic Party’s platform does not clarify its attitude toward future trade policy, stating that it will not enter into negotiations for a new trade agreement before investing in increased competitiveness in the United States itself. Many in the U.S. Congress, including Democrats, are still cautious about joining the TPP, and “the possibility of a U.S. return to the TPP is considered unlikely,” according to a Japanese government official.
The repercussions of the U.S. strategy on China are also noteworthy. Biden has criticized Trump’s sanctioned tariffs in his policy toward China, but he plans to seek cooperation from Japan and other allies to correct unfair trade practices and other problems. Japan will continue to be tested on its relationship with China, which has a huge market.
Whether Japan can play a role in bridging the international taxation gap between the U.S. and Europe on giant IT companies, which the U.S. and Europe have been at odds over, is likely to be a challenge.