It has been five years since the leaders of the three countries met for what we used to call the “three amigos” summit. This interlude obviously corresponded to the time spent in the White House by a certain American president who did not believe, among other things, in the value of free trade, international cooperation, or even the signing of his own country at the bottom of the international agreements. His defeat and his replacement by Joe Biden had been seen by the rest of the world as good news and a return to a more positive and constructive attitude, especially in international trade.
Canadian Prime Minister Justin Trudeau and Mexican President Andrés Manuel López Obrador, however, arrived in Washington this week with suitcases full of frustrations and recriminations in this regard. They were particularly against this idea of elected Democrats to apply the “Buy American” rule to their gigantic investment plans in the country’s physical and social infrastructure.
They couldn’t believe that after all these years of trying to make Donald Trump understand the extraordinary degree of economic integration of the three countries, they were being forced to start work from scratch. What is more, in the sector which constitutes the quintessential example of this North American integration, the auto industry, where Joe Biden would like to reserve his tax credits for the purchase of electric vehicles built in the States. -United. Currently, parts can cross borders up to seven times before arriving at a finished product.
Ironically, this latest measure would not only violate the rules of the World Trade Organization (WTO), but also those of the new NAFTA that Joe Biden’s predecessor forced into the back of his throat. two neighbors.
What a difference ?
Canadians and Mexicans should not, however, feel too personally targeted by these new snubs from their main economic “partner”. The great economic powers often take liberties with the general rules that they would like others to respect. But also, this is not the only example where, apart from the change of style, it is difficult to see the difference between the trade policies of Donald Trump and that of Joe Biden.
Three-quarters of Biden’s actions in the matter are Trump policies “with rounded corners and a smiley face,” observed Peterson Institute of International Economics expert Gary Hufbauer in Washington last month. East Asia Forum. The United States continues its war of tariffs and technological restrictions against China, noted this spring Dan Ciuriak of the Center for International Governance Innovation. They continue to block the functioning of the WTO dispute settlement mechanism. They simply turned their tariffs on steel and aluminum into import quotas. They still claim that part of their protectionism is aimed at defending their “national security”. They are still in conflict with Europe in the aviation industry …
You have to understand Joe Biden, say observers. His priority is to get his ambitious plans for internal economic and social reconstruction adopted, and the last thing he can afford right now is to alienate part of a US Congress divided between Democrats, generally critical of free trade, and Trumpist Republicans.
Turning
But there you go, says Gary Hufbauer, if he loses his majority in Congress in the midterm election next year, as expected, he can be sure to have whatever little leeway he has been taken away. again, including its extensive Trade Promotion Authority which increases its capacity to enter into international agreements.
But perhaps we have reached a turning point where not only the United States, but several other countries as well, would like to give their governments the right to be more interventionist and to promote the development of national champions, says the researcher. from Boston University Sandra Polaski in the latest edition of the journal Economic interventions.
On the other hand, it is difficult to see how all these countries would really manage to make progress other than in a concerted manner on major issues such as trade, pandemics, climate change, technological upheavals or migratory flows. In fact, says Dan Ciuriak, if the world has come to a crossroads, it is rather one where we feel the need to reinvent our common international institutions. But to do so will require the active participation of the major powers, starting with the United States.