2024 Meridian Corporate Council Annual Meeting

 

On September 19, 2024, the Meridian Corporate Council hosted The Honorable Jared Bernstein, Chair, Council of Economic Advisers and The Honorable Richard Verma, Deputy Secretary of State for Management & Resources for its Corporate Council Annual Meeting. The conversation, moderated by Ambassador Stuart Holliday, Meridian’s Chief Executive Officer, covered the future of the U.S. economy, industry modernization, and trade policy.

About The Honorable Richard Verma

Richard R. Verma serves as the Deputy Secretary of State for Management & Resources. In this role, he acts as the Chief Operating Officer of the Department, and leads the Department’s efforts on modernization, foreign assistance, and a wide range of workforce and strategic issues.  Deputy Secretary Verma previously served as the U.S. Ambassador to India, where he led one of the largest U.S. diplomatic missions and championed historic progress in bilateral ties. He is also a former Assistant Secretary of State for Legislative Affairs and the former National Security Advisor to the Senate Majority Leader. Deputy Secretary Verma has also had a distinguished career in the private sector, most recently serving as the Chief Legal Officer and Head of Global Public Policy for Mastercard. He is a former partner at the law firm of Steptoe & Johnson, and the Vice Chairman of The Asia Group, a global consulting firm. He also served on the T. Rowe Price corporate board of directors. Deputy Secretary Verma is a veteran of the U.S. Air Force, and the recipient of numerous military awards and civilian decorations, including the Meritorious Service Medal and the State Department’s Distinguished Service Award. He is also the recipient of the Council on Foreign Relations International Affairs Fellowship, and the Chief Justice Marshall Lifetime Achievement Award. Deputy Secretary Verma was a member of the President’s Intelligence Advisory Board, the Weapons of Mass Destruction and Terrorism Commission, and the Secretary of State’s Foreign Affairs Policy Board. He has served on a number of non-profit boards, including the Ford Foundation, Lehigh University, and the National Endowment for Democracy. Deputy Secretary Verma was a Senior Fellow at Harvard University’s Belfer Center for Science and International Affairs, and he holds multiple academic degrees, including his doctorate (Ph.D.) from Georgetown University and his law degree (J.D.) from American University

About The Honorable Jared Bernstein

Jared Bernstein was confirmed by the Senate on June 13, 2023, as the 31st Chair of the Council of Economic Advisers. In this role, he serves as President Biden’s Chief Economist and as a Member of the Cabinet. Before his appointment as Chair, Dr. Bernstein served as a CEA Member from the beginning of the Biden-Harris Administration. Chair Bernstein has held a variety of posts in economic policy and research. In policy, he was Chief Economist and Economic Adviser to then–Vice President Biden from 2009 to 2011 and served as Deputy Chief Economist at the Department of Labor during the Clinton Administration. In research, Dr. Bernstein was a Senior Fellow at the Center on Budget and Policy Priorities from 2011 to 2020 and spent 16 years in senior roles at the Economic Policy Institute. An expert on labor markets and macroeconomics, Dr. Bernstein’s research focuses on income inequality, mobility, employment and earnings, international trade, and the living standards of the middle class. He received a BA from the Manhattan School of Music; an MA from the Hunter School of Social Work; and an MA and PhD from Columbia University 

Here are some takeaways from the program:

Balancing the consumer and labor in trade policy

Throughout his administration, President Biden has promoted a worker-centric trade policy. In May of 2024, the administration increased tariffs on $18 billion worth of imports from China, specifically citing their desire to protect American workers and businesses by countering China’s unfair trading practices. On September 18, 2024, the Federal Reserve cut interest rates for the first time since 2020, a move meant to prevent a stall in the economy and keep unemployment rates low. In the last four years there has been a major investment in U.S. trade infrastructure through projects like the Inflation Reduction Act (IRA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, two initiatives slated to create thousands of jobs for middle-class Americans, strengthen supply chains, and counter Chinese corporations’ control over certain markets. Over the last four years, there has been a major investment in U.S. trade infrastructure through projects like the Inflation Reduction Act (IRA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act. These two initiatives are slated to create thousands of jobs for middle-class Americans, strengthen supply chains, and counter Chinese corporations’ control over certain markets. Throughout the administration there has been a delicate balancing act to both consider workers and consumers in robust trade policy.

Importing Innovation, Exporting Industrialization

To grow the national job market and stop China’s growing influence over the supply chain for certain critical technologies, the Biden administration has prioritized increasing manufacturing for some industries in the U.S. For example, the country has always led in semiconductor design, but the goal is now to become leaders in manufacturing as well, with U.S. production of the semiconductor’s expecting to triple in the next decade following the enactment of CHIPS. To grow the national job market and stop China’s growing influence over the supply chain for certain critical technologies, the Biden administration has prioritized increasing manufacturing for some industries in the U.S. For instance, the country has always led in semiconductor design, but the goal is now to become leaders in manufacturing as well, with U.S. production of the semiconductor expected to triple in the next decade following the enactment of CHIPS. Similarly, following the implementation of the IRA, the Biden administration is expecting to see the creation of 270,000 clean energy jobs and an increase in U.S. influence in the energy sector. Similarly, following the implementation of the IRA, the Biden administration is expecting to see the creation of 270,000 clean energy jobs and an increase the U.S. influence in the energy sector. While the importation of innovation will always have a place in U.S. trade policy, it has become a new mandate for the Biden administration that the industries that will support and develop the technologies of the future stay in the U.S

The U.S. Department of State Embraces Change

As global challenges evolve so must diplomacy. To better prepare U.S. diplomats and businesses to deal with these changes, the U.S. Department of State is completely restructuring many of its training programs and significantly expanding their staff. Secretary Blinken presented his modernization plan at the outset of his tenure. The Department of State is now making advancements in the renewable energy sector, helping to strengthen the semiconductor supply chain, regulating critical mineral practices, and developing new cybersecurity technologies that incorporate AI. The Department of State expects that the modernization of its diplomatic approach will help advance public and private interests internationally. The recent announcement of online passport renewal, while not a remedy towards geopolitical conflict, is a large boon as this process is one of the largest touchpoints for the average American to the State department.

Rebuilding Ukraine, an Unprecedented Opportunity

As U.S. aid and investment in Ukraine surpasses the $20 billion mark, the Federal government now turns to the private sector for support in the reconstruction effort, which is estimated by the World Bank to cost around $486 billion over the next ten years. Investing in the country could entail participation in some of the roughly 850 projects the Ukrainian government hopes to undertake over the decade, as well as the opportunity to shape the country’s investment climate after Russia’s unjust invasion of Ukraine. The U.S. Department of State asserts that ideas from private sector will be pivotal for Ukraine’s reconstruction and the political, economic, and governmental reforms that will be incorporated throughout this long process. The U.S. Department of State asserts that ideas from private sector will be pivotal for Ukraine’s reconstruction and the political, economic, and governmental reforms that will be incorporated throughout this long process.

Looking Towards the Future with Our Allies

In the coming years, the Quadrilateral Security Dialogue (QUAD) will be key to limiting China’s influence over the semiconductor industry, advancing the clean energy transition, and fortifying global supply chains. The alliance, often referred to as a prime example of geometric diplomacy, sees the U.S. working alongside two of its treaty allies (Japan and Australia) and India, to advance a strategic goals in the Indo-Pacific region. Given the recent success of the QUAD in deterring Chinese advancement and maintaining peace in the Indo-Pacific, this type of multilateralism could be replicated in other parts of the world to establish more alliances akin to the QUAD.