In Brief

Some early indications of the the new United States administration’s trade policy are emerging.

This week’s Bridges Trade News Digest summarises the new annual Trade Policy Report of the President.  There are no big surprises.  The document emphasises the need to ensure that firms and workers are able to adjust to change.

Willingness to complete the Doha Round is contingent on a better balance of gains and short-term costs, so offers no new hope for a speedy conclusion.

At the same time, the President has called for an end to payments to large agribusiness.  Bridges Weekly welcomes the willingness to take on the farm lobby, but it is sceptical about whether the proposals will pass Congress, or whether they will have a direct effect on the Doha negotiations.

On another front, the President seems to have been able to assure the world that the “buy American” provisions in the stimulus package does not mean a reversion to protectionism.  There are no reports of intents to retaliate, but economic nationalism still threatens.