Saturday 27 February 2021
Home EU EU wants to quickly improve trade relations with new USA president Biden

EU wants to quickly improve trade relations with new USA president Biden

New US President Joe Biden will be one of his first acts to sign the Paris climate agreement and will reverse a number of controversial decrees from his predecessor. The relationship between the EU and the US is set to improve significantly, and Biden is expected to end the US-European trade wars.

In any case, the European Union must immediately start negotiations with the new US administration to reach a compromise in the long-drawn-out conflict over subsidies to the aviation industry, the European Parliament's Agriculture Committee has now called. Other EU leaders also hope that Biden will 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 there will be a more stable trade policy under Biden. Incidentally, it is expected that Biden will continue the hard line against China. He has previously said that he wants to work with the EU to slow down China's growing economic hegemony.

In the next few years, Biden has the political space for renewal because the Democrats have a majority in both the Senate and the House (= parliament). That may change in midterm elections in 2022.

Biden had not made American agriculture the spearhead of his policy. In itself logical, because Democrats voters predominantly live in and around the big cities, and less in rural areas. Biden recently sneered to Trump that rural employment has declined, while Trump promised the opposite four years ago.

Biden further promises that he will not only modernize the American countryside (roll out 5G!), But also treat the agricultural sector as a modern but normal industry. The spearhead is expanding the work permit system for (foreign) temporary seasonal workers.

In addition, Biden wants to focus strongly on research and technology with the 'largest investment in sustainable energy and innovation ever'; about 400 billion dollars spread over ten years. Biden has plans to tackle aviation, revamp agriculture, promote electric cars and much more.

By bringing in former minister Tom Vilsack as the new Agriculture Minister, Biden has at least brought in '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 - in the first hundred days - to put America's food and agriculture programs along the Climate bar, but also foresees new income for American farmers who want to participate in Green Deal-like business activities.

In addition, Biden and Vilsack can in the short term have their 'own' politicians appointed to three of the four most influential agricultural positions within the federal government, because three chairing Senators of the Agriculture Commission in their state were not re-elected.

With that, Biden gets his own top at the USDA. The future of American agricultural policy thus appears to be on the verge of modernization.

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