Former U.S. Trade Representative Susan Schwab said that although President-elect Joe Biden has signaled that trade is not a priority for him, he is unlikely to be able to put it on the back burner completely until the COVID-19 crisis and economic recession are resolved. “Trade is going to come to them even if they don’t necessarily want to go to trade,” she said during a Peterson Institute for International Economics Trade Talks interview Nov. 24. When Biden is at a G-7 or G-20 meeting, and other heads of state bring up trade, “What are you going to do? Say, 'I'm not going to do trade for the next two or three years'? So, you can’t underestimate what happens when [India's] Prime Minister [Narendra] Modi wants to talk to you about trade. Or [China's President] Xi Jinping wants to talk to you about trade. Or [German Chancellor] Angela Merkel wants to talk to you about trade.”

The United Kingdom and Canada will roll over their existing trade deal into 2021 and will begin negotiating a new agreement after the U.K. officially leaves the European Union Jan. 1 (see 2011230001), the U.K. said Nov. 21. The U.K. said the two sides will negotiate a “more ambitious” deal next year. The agreement to continue the existing provisions “will support the British automotive manufacturing and food and drink industries which between them provide jobs for more than half a million people across the UK,” the announcement said. It is foundational to a new deal that “will be tailored for the British economy with the potential to go further in new areas like digital trade, women’s economic empowerment and the environment.”

Antony Blinken, President-elect Joe Biden's choice for secretary of state, has said that the Section 301 tariffs on China and Section 232 tariffs on Europe “harm our own people,” according to coverage of a U.S. Chamber of Commerce talk he gave in September. “We would use tariffs when they’re needed, but backed by a strategy and a plan,” he added. Blinken, who served as deputy secretary of state under President Barack Obama, said, “The EU is the largest market in the world. We need to improve our economic relations, and we need to bring to an end an artificial trade war that the Trump administration has started,” Reuters reported from the Chamber talk.

The United Kingdom and Indonesia held the third round of a joint trade review (see 2007270013) and discussed increasing trade, including in agricultural products, food and beverages, technology and pharmaceuticals, as well as “the creative economy,” the U.K. said Nov. 19. The third round of discussions, completed Nov. 19, brings the two nations closer to issuing a joint report recommending trade measures to increase cooperation. Cathryn Law, the U.K.’s director of bilateral trade relations, said both sides hope to complete the review “soon“ with an “agreement to further enhance our bilateral trade and investment across a range of key sectors.”

U.S. Trade Representative Robert Lighthizer said he has no substantive regrets about the policies his office has spearheaded that have raised tariffs on products from around the world. He said the next USTR will also have to prioritize American manufacturers over inexpensive imports, and treat China as a threat. “Those things are going to endure and people will continue to make progress on them,” he said during an evening webinar Nov. 19.

In a Joe Biden administration, some tariffs can be unilaterally withdrawn, but others would require complex negotiations to sort out, said Peterson Institute for International Economics nonresident senior fellow Anabel Gonzalez. She asked PIIE Senior Fellow Chad Bown and former U.S. Trade Representative Michael Froman where they think the new administration's energies should be directed, during a Nov. 18 webinar.

The Office of the U.S. Trade Representative announced Nov. 19 that U.S. and Ecuadoran officials talked trade and investment on Nov. 10, covering intellectual property, the environment, labor and agricultural trade. The two sides are working on a Protocol on Trade Rules and Transparency, and plan to conclude before the end of the year. The protocol would include provisions on trade facilitation, good regulatory practices, anti-corruption, and cooperation on small and medium-sized enterprises. A fourth meeting of the group of negotiators is planned to be in Ecuador next year.

The European Council approved a tariff package that would eliminate customs duties on U.S. lobster imports in exchange for reduced U.S. duties on several European Union products, including prepared meals, crystal glassware, surface preparations, propellant powders and lighters (see 2008210028). The package, which the European Union said would be the first EU-U.S. tariff reduction in two decades, could increase market access for both EU and U.S. traders by about $240 million per year, the council said in a Nov. 18 news release. The package needs European Parliament approval. If enacted, it would take effect retroactively from Aug. 1 for five years.

The Joe Biden transition teams have been announced. The team that is communicating with the Office of the U.S. Trade Representative, the International Trade Commission and the U.S. Trade and Development Agency includes Democratic alumni; experts on trade, industrial policy and currency flows; and union critics of past free trade policy. The teams “are responsible for understanding the operations of each agency, ensuring a smooth transfer of power, and preparing for President-elect Biden and Vice President-elect [Kamala] Harris and their [C]abinet to hit the ground running on Day One,” the announcement said.

U.S. Fashion Industry Association counsel David Spooner told attendees at the USFIA industry virtual conference Nov. 10 that while he thinks it's unlikely that the current administration would add new tariffs on China before leaving office in two months, it's possible that President Donald Trump could increase the tariff rate on list 4A, or put tariffs on list 4B, as a way of “venting his frustration with China.” Spooner, who is at law firm Barnes and Thornburg, said it's also possible that the administration will retaliate against European Union tariffs authorized by the World Trade Organization for past Boeing subsidies.