Richard Mojica and Dana Watts Comment on Navigating the Future of Trade Policy with the Biden Administration in Global Trade
Richard Mojica and Dana Watts, Member and Counsel at Miller & Chevalier, respectively, weigh in on the 2020 election outcome, how international and domestic trade lanes shifts can be anticipated, and what traders can do to prepare now for the near future. "President Biden will likely continue a trade policy of protectionism," Mojica said, adding "Biden's approach would be more subtle than Trump's, but his trade policy agenda is centered around the familiar themes of taking a hard line on China and boosting U.S. industries by increasing government purchases of U.S.-based goods and services."
Prior to the departure of the former president from the White House, a key issue for many American manufacturers was the U.S.-China deal. Relations with China are a constant question with Biden now officially sworn in. "For the last 2-3 years, many companies with supply chains involving China have moved all or some production out of China and into Vietnam, Malaysia and elsewhere in Asia," Watts explained. "U.S. companies are also considering moving production to Mexico because of its proximity to the United States and the potential cost-savings associated with the U.S.-Mexico-Canada Agreement (USMCA) implemented on July 1," Watts said.