US Trade Representative Catherine Tye is expected to highlight the unsustainability of the current globalized model and the need for reform to make it more competitive in a speech she is expected to deliver in Washington in the early afternoon (local time), it was learned of the French Agency.

According to Tai, successive crises, notably the pandemic and the war in Ukraine, have highlighted “the vulnerability of supply chains and the unsustainable version of globalization” in its current form.

“It is abundantly clear that these challenges have implications for competition policy as well as trade policy,” he insisted, stressing that “our global supply chain, created to maximize efficiency in the short term and minimize costs, will have to be reinvented in order to to ensure durability”. “Stable supply chains are vital for better security, economic and national,” Tai is expected to underline.

In order to reduce its dependence on China in the commercial sector, the US has launched plans to re-industrialize and invest in sectors considered important, such as electric car batteries, semiconductors, clean energy.

A policy choice that raised fears among the US’s biggest trading partners, namely the European Union, Japan and South Korea, who fear a subsidy war aimed at attracting companies to different countries’ territories.

It is in particular the big climate plan passed last summer that promised significant subsidies, the US Inflation Reduction Act (IRA) that cemented those fears, the European Union that responded to it with an equivalent plan which incorporates equivalent subsidies.