The United States may be the world’s largest economy for now, but China is the largest trading nation in the world.
Despite losing pole position in 2013, trade has been an engine of growth for the United States for decades.
And this is where the U.S. trade representative wields considerable influence.
For the United States Trade Representative, I nominate Katherine Tai
a trusted trade expert, a dedicated public servant who knows government.
The job is even more critical amidst the rise of China’s economic might and its wider ambitions,
such as its Made in China 2025 roadmap and the Belt and Road initiative.
These, together with increased protectionism worldwide, will have broader geopolitical implications in the long-term.
So, what is the role of a trade czar all about, and how will this affect U.S. trade policies?
The Office of the U.S. Trade Representative, or USTR, develops and executes the country’s
international trade, commodity and direct investment policies, including trade deals.
This is done through its offices that handle bilateral negotiations, multilateral deals,
sectoral activities, policy coordination and public outreach.
Some of these offices cover geographical regions, while others handle specific issues such as
intellectual property, textiles, environment and labor.
All these are done by a small team of over 200 staff, including lawyers and economists.
At the helm is the trade representative - or informally, a trade czar -
the principal trade advisor to the President, negotiator, and spokesperson on trade issues.
The number of czars in each administration reads like a laundry list, and the number varies according to who is in the White House.
In fact, the term “czar” is an unofficial title for official advisors to the President.
During the Obama administration, there was a “green-jobs czar,“ an “Ebola czar”
and get this - an “Asian Carp czar” to handle the invasive fish species threatening America’s biodiversity.
Some critics have said that these czars add unnecessary layers of bureaucracy to the government.
In 2009, six Republican lawmakers wrote in a letter to Obama that his bevy of czars
"may be undermining the constitutional oversight responsibilities of Congress.”
But not all czars are created equal, and the informal title is a relatively modern phenomenon
that gained ground with Franklin Roosevelt.
Most czars are appointed directly by the President, while some, such as the drug czar and the trade czar,
must be confirmed by the U.S. Senate.
Until 1962, the trade czar role didn’t exist, and the U.S. state department was largely
responsible for trade and investment diplomacy.
If appointed, Katherine Tai will be the first Asian-American to serve as the trade chief.
Her experience in negotiating with China meant that she had wide bipartisan support
including from labor and big business groups.
Tai, who has family roots in China and Taiwan, is a graduate of Yale University and Harvard Law School.
From 2007 to 2014, the Connecticut native worked at the USTR, with the final three years
as the chief lawyer to police China trade issues.
In 2012, the fluent Mandarin speaker was instrumental in getting 18 other economies to join a landmark case against China
at the World Trade Organization regarding its restrictions on rare earth exports.
Her subsequent work in Congress on the renegotiated US-Mexico-Canada Agreement, and legislation proposals
that banned imports made with forced labor in China’s Xinjiang region, has drawn bipartisan support for her appointment.
Tai’s experience in confronting unfair trade practices with China may mean that the trade war
between the two countries is unlikely to end anytime soon.
But unlike Trump’s trade czar Robert Lighthizer’s knuckleduster approach of alienating allies,
Tai is expected to favor a conciliatory approach.
In August 2020, Tai called Lighthizer’s tariff wars “largely defensive” and outlined a more offensive approach to be
"faster, nimbler, able to jump higher and able to compete stronger.”
This is in line with Biden’s priority to strengthen multilateral ties with traditional
U.S. allies in Asia and Europe in dealing with China.
During the Obama-Biden administration, she was the chief trade enforcer against unfair trade practices by China,
which will be a key priority in the Biden-Harris administration.
This might mean that Tai could be instrumental in pivoting the U.S. back to Asia through bilateral trade deals or multilateral ones
such as the CPTPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership,
which Trump withdrew from in 2017.
This will allow the U.S. to have a say in writing the trade rules in the 21st century
while countering China’s growing influence in the region.
This historic nomination comes at a time when multilateralism is in retreat worldwide
while China is asserting its might to rewrite the rules of the global order.
With global trade battered by the pandemic, challenges brewing domestically
and America’s international standing eroded, Tai will have her job cut out for her.
Trade is like any other tool in our domestic or foreign policy.
It is not an end in itself; it is a means to create more hope and opportunity for people.
And it only succeeds when the humanity and dignity of every American and of all people
lie at the heart of our approach.
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