President Biden has broken with several decades of orthodox trade policy. He has been willing to subordinate the traditional corporate brand of trade deals to a “worker-centered” industrial and trade policy. He has partly sacrificed the sacred cow of past trade deals, the World Trade Organization, in favor of the national economic interest. And as bargaining levers against China, he has retained some of the tariffs imposed by President Trump. Since corporations were the primary beneficiaries of the now discarded model, and since thousands of trade experts, in and out of government (and often in revolving doors), have based their entire careers on the old approach, there is a fierce undertow of adversaries attempting to discredit Biden’s shift. Caught in the middle is Biden’s U.S. trade representative, Katherine Tai. That’s where the infighting gets viciously personal. Unlike previous trade reps, Tai does not have a direct relationship with her president. She has also inherited a career staff, many of whom resent and undermine the new direction of trade policy. Of the few officials whom she does get to appoint, many have been imposed by the White House and are not in sympathy with either Tai or Biden’s trade agenda. The latest example is the nomination of Nelson Cunningham, a longtime corporate trade consultant, to be Tai’s deputy. The nomination is opposed by leading Democratic senators and may well fall of its own weight.
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