Security and trade post-election

The Center for Strategic and International Studies November 14 hosted two panels on the midterm elections’ implications for the trans-Atlantic agenda and trade policy. The first featured a discussion with Senator Chris Murphy (D-CT) and the second a conversation between CSIS experts  Louis Lauter, Vice President for Congressional and Government Affairs, and William Alan Reinsch, Senior Adviser and Scholl Chair in International Business. Heather A. Conley, Senior Vice President for Europe, Eurasia, and the Arctic and the Director of the Europe Program at CSIS, moderated.

President Trump’s current threat to leave the 1987 Intermediate-Range Nuclear Forces (INF) Treaty set the tone for the first discussion. Murphy framed the move as consistent with a broader agenda from the anti-institutionalists in the Administration to withdraw from multilateral organizations, with the spotlight on NATO after the President’s threatening comments last summer.

Murphy highlighted that there is a tendency in Congress to separate the President’s actions and statements from the Administration. While the President is launching rhetorical assaults against NATO, under the surface NATO cooperation continues. Many Republican colleagues have favored this approach, creating an atmosphere complacency. Murphy cautioned that the President should be taken at his word. Congress should prevent an executive withdrawal from NATO. The Senator introduced a failed bill back in July that would have required Congressional consent. There might be more interest in the Democratic-controlled House once Congress reconvenes.

Murphy warned that US foreign policy has become too sanctions dependent. There is a need to create and use alternative Congressional foreign policy instruments, a recommendation echoed by Lauter in his recent study on Congressional foreign policy preferences. The Senator recently introduced the European Energy Security and Diversification Act to finance energy infrastructure in Europe as a means to promote independence from Russia. He also pointed to the need to fund fragile democracies in the region.

Trump’s distancing the US from its NATO allies should be seen as part of a general trend towards isolationism and nationalism, in contrast to French President Macron’s vision for multilateralism and internationalism to solve global problems. Trump’s America First message still resonates with large swaths of the country, prompting Murphy to state that until we fix our domestic politics and economy, politicians will be able to sell Trump’s message in regions that have seen losses in jobs such as manufacturing.

While Reinsch pointed out that trade is low on the average voter’s motivations, Murphy underlined the connection between global institutions/alliances and the strength of the American economy and jobs. Trump’s threatening posture towards NATO does not exist in an economic vacuum. Macron has been urging Europe to become more militarily and technologically autonomous, in part by favoring European defense contractors over American ones, in response to Trump’s criticism of NATO. The steel and aluminum tariffs imposed on the EU make the situation worse.  

The political divide between skeptics and supporters of liberalized international trade rests more within parties than between them, according to Reinsch and Lauter’s recent studies. Lauter’s study of the pre-election Congress’ foreign policy preferences found that Congress was fairly internationalist, with Reinsch elaborating that trade was less a partisan issue and more a regional one. The coasts tend to be pro-trade while skeptics dominate the Midwest, as demonstrated in the mixed reactions to Trump’s tariffs on the EU.

A post-election survey of incoming Democrats looked at their public statements on the issue. Twenty-four of fifty-five surveyed said nothing about trade following the election. Twenty-one made pro-trade statements, and eight anti-trade statements. While Democrats may hold the USMCA (the NAFTA replacement) hostage for political reasons, Reinsch predicted that the new Congress will include many pro-trade representatives. It is too soon to write a general obituary for trade agreements.

China is the regional challenge that will likely continue to enjoy bipartisan support, evidenced in the reaction to the Administration’s 301 report on China. The question will be how this is handled moving forward in light of Trump’s relationship with the WTO.  While he has rejected appointments of new judges for its dispute appellate body and is willing to go beyond the WTO to achieve policy goals, Reinsch emphasized that the Europeans and Japanese want to address concerns over China within the context of the WTO.