Elizabeth Warren's trade policy could alienate US trading partners

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Elizabeth Warren's trade policy could alienate US trading partners
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Elizabeth Warren's trade policy could alienate US trading partners via YahooFinance

President Trump has proven how influential the White House is in setting trade policy without Congressional approval through his implementation of tariffs on billions of dollars in goods from China and Europe. Similarly, if Massachusetts Sen. Elizabeth Warren were to win the 2020 election, she’d have wide latitude to pursue her agenda.

First, Warren views trade policy as a separate issue from national security, and would introduce an eligibility test for trade agreements with foreign countries that focuses on their labor and human rights, anti-bribery and anti-trafficking, religious freedom and track record for fighting tax evasion. Meaning, if a potential U.S. trade partner, like India or Mexico, doesn’t have adequate anti-trafficking safeguards in place or a poor record on labor rights, Warren wouldn’t do business with them.

Barclays analyst Shawn Golhar says this condition is unlikely to be met by many countries. Warren’s plans would be counterproductive and “may prove to be too disruptive,” he says.

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