The new American president Joe Biden will, as one of his first acts, sign the Paris climate agreement and will reverse a number of controversial decrees imposed by his predecessor. The relationship between the EU and the US will improve significantly, and Biden is expected to put an end to the American-European trade wars.
The European Union must immediately start negotiations with the new American government to reach a compromise in the long-standing dispute over subsidies to the aviation industry, the Agriculture Committee of the European Parliament has now called for. Other EU leaders also hope that Biden will want to avoid further sanctions that could harm EU farmers.
According to Dutch economist Van Wijnbergen, former president Donald Trump was extremely aggressive with his trade wars and under Biden a more stable trade policy will emerge. However, Biden is still expected to continue the hard line against China. He has previously stated that he wants to slow down China's growing economic hegemony together with the EU.
In the coming years, Biden has political space for reforms because the Democrats hold a majority in both the Senate and the House (parliament). This could change during the midterm elections in 2022.
Biden did not make American agriculture a spearhead of his policy. This is understandable as Democratic voters predominantly live in and around large cities, and less on rural agricultural land. Biden recently criticized Trump for the decline in rural employment, while Trump promised the opposite four years ago.
Biden further promises not only to modernize the American countryside (including the rollout of 5G!), but also to treat the agricultural sector as a modern yet normal industry. A key focus is expanding the work permit system for (foreign) temporary seasonal workers.
Additionally, Biden wants to strongly invest in research and technology with the 'largest-ever investment in sustainable energy and innovation'; about 400 billion dollars spread over ten years. Biden has plans to address aviation, modernize agriculture, promote electric cars, and much more.
By appointing former minister Tom Vilsack as the new Agriculture Secretary, Biden has secured 'an experienced old hand' who knows the American agricultural world inside out. Biden called Vilsack in December 'the best agriculture minister our country has ever had.'
Vilsack has already said that he wants to assess American food and agriculture programs against climate criteria within the first hundred days, but also foresees new income opportunities for American farmers willing to participate in Green Deal-like business activities.
Moreover, Biden and Vilsack can soon appoint their own politicians to three of the four most influential agricultural positions within the federal government, because three chairing senators of the Agriculture Committee were not re-elected in their states.
This will give Biden his own top leadership at the USDA, indicating that the future of American agricultural policy is on the verge of modernization.