‘A trading country, the Netherlands has a lot to gain from Biden’s profits’

Democrat Joe Biden’s victory in the presidential elections in the United States will likely work favorably for the Netherlands, as our country is very dependent on international trade. Biden is expected to create more peace and detente on the international trade front, which is positive for Dutch exports.

Economics professor Bas Jacobs at Erasmus University Rotterdam expects international relations to normalize again under Biden, after they have been undermined by Donald Trump. Jacobs believes the trade war with China will end. Biden will also reestablish ties with NATO and endorse the Paris climate deal, which he had already announced. “The United States will once again be the leader of the free West,” said Jacobs.

“Under Biden, international trade will enter calmer waters, with less uncertainty. The United States will take a more pro-global stance that will increase confidence in the economy, which is absolutely very important,” says Arnoud Boot, professor of economics at the University. . from Amsterdam, to. On the contrary, he doesn’t expect Sino-U.S. Trade tensions to abate sharply as Biden will be forced to show he’s tough on China. The United States also remains a self-centered country, even under Biden, according to Boot.

The two professors also believe that the new president will do more to improve the purchasing power of the middle class and lower incomes, while investing more in education and infrastructure. This could fuel domestic consumption, which would also lead to increased imports from abroad. An exporting country like the Netherlands benefits from this. Jacobs adds that the Netherlands is a very important investor in the United States and therefore a stronger American economy is positive for Dutch investment and investment in the country.

Less desire to innovate

However, Biden is expected to raise taxes for big corporations and the wealthy. This could lead to less desire to innovate in the business world. Under Trump’s “raw capitalism”, the bravado among entrepreneurs could perhaps be a little greater than under Biden, Boot argues. Jacobs, on the other hand, argues that under Trump there was also more room for much larger excesses of capitalism, in which money was earned undeservedly. “For example through the abuse of power and the transfer of financial and business risks to taxpayers, employees and consumers.”

ING economist James Knightley, an expert on the US economy, also believes Biden wants to work more closely with his international trading partners and allies. Biden also expressed plans for a transition from fossil fuels to more sustainable energy sources. This can be beneficial for European and Dutch companies, as they have experience in producing sustainable forms of energy.

Dutch business community

Entrepreneurial organizations VNO-NCW and MKB-Nederland believe that relations with the United States can be improved under the leadership of new President Joe Biden.

Recent trade disputes between the European Union and the United States over steel, among other things, must be ended quickly, they say. “We hope this will be successful under the new president and we look forward to working with the new government,” said an early response from organizations to Biden’s election victory.

Still, the business lobby believes the EU should get stronger in several areas, even with Biden as president. “The geopolitical game between the United States and China is unlikely to change significantly under Biden. Only one Europe has real power in this game.”

According to entrepreneurs, the United States is still the Netherlands’ main trading partner outside the EU. For example, in 2019 our country exported € 26.6 billion to the United States and we imported € 37.7 billion from the United States. “The United States is also a major investor in the Netherlands. And it is a crucial partner for the Netherlands and the EU to work with and to raise global standards, for example, in the economic, environmental and social at a higher level. “

The FNV also announced that it was happy with Biden’s election. According to union president Han Busker, the Democrat “has always been a friend of the American unions”. “His victory is their victory.”

Busker thinks America can now “start building the unity of the country again.” Busker says Biden has already announced that the United States will join the Paris Climate Agreement soon.

Evofenedex: improvement of the business climate thanks to the victory of Biden

Evofenedex, which represents the business and logistics interests of 15,000 companies in the Netherlands, also believes that Joe Biden’s profit in the US presidential election will lead to an improvement in the global business climate, as the US takes a more moderate path. Trade.

Evofenedex director Bart Jan Koopman believes that with Biden there will be more prospects for a reliable and functioning international trading system. This can be done, for example, by restoring confidence in the international rules of the game and again making objective dispute resolution possible through the World Trade Organization (WTO). A rapprochement between the economic superpowers of China and the United States and the settlement of the current trade war may also improve the climate further. According to Koopman, this would help find its own European role in relations with the two world powers.

Koopman believes Democrats are also very critical of China’s role in the world, so big steps don’t seem likely here. “America under President Biden will hopefully move towards greater geopolitical stability, restore the position of the WTO and the multilateral trading system, and leave.