October 30, 2008
Source: The Journal of Commerce Online
The future of the
United States' free-trade agenda is in big trouble. Consider
this train of thought: The global economy is in a tailspin,
and Republicans are being held responsible by most voters. Free
trade has been a cornerstone of the Bush economic agenda. President
Bush has shown ineffective leadership in economic affairs, and
supported free trade. So, the logic goes, how could free trade
be a cause worth saving? How could free trade be part of the
solution to today's woes, not part of the problem?
And isn't free trade really another insidious attempt at economic
deregulation? The word "deregulation" has rapidly
become anathema on both Wall Street and Main Street. To those
who know little or nothing about the complexities of global
trade, "deregulation" of trade smells all too much
of the financial deregulation that lined the pockets of the
wealthy and hurt ordinary people. The rich get richer; the poor
get poorer. Free trade must be destroying the middle class,
since global corporations run by Republicans support free trade,
right?
Republican presidential candidate John McCain and his Democratic
rival, Barack Obama, both claim to want "change."
Softening the impact of NAFTA and CAFTA, and blocking passage
of new trade pacts with South Korea and Colombia, would bring
a definitive turnaround from the free-trade agenda of the Bush
years. That's change, isn't it? (McCain's past support for free
trade doesn't seem to jibe with his insistence that he, too,
wants "change." His position on free trade is one
of the few economic policies that he wants to preserve from
the Bush years.)
It was only during the final debate between McCain and Obama
that the trade agenda surfaced, and only for a few moments.
That's when McCain attempted to make an issue of the pending
agreement with Colombia, arguing that the accord would help
the United States economy by boosting U.S. exports to that country.
However valid McCain's comments, they seemed to pass over the
heads of many pundits and voters.
For his part, Obama has sent mixed messages. The Illinois senator
repeatedly has said that he wants "change," but that
he also favors "free trade" -- at least so long as
any free trade agreements are structured to address environmental
and labor issues. But many supporters of free trade fear that
Obama is secretly eager to steer the U.S. economy toward protectionism
at a time when further trade deregulation is critical for reviving
the stagnant global economy.
Obama's rhetorical support for 'free trade' rings hollow for
these critics. So what if Obama says he supports trade? No one
admits to being a 'protectionist' these days; that's almost
as bad as admitting you are a 'racist.'
When Obama said during a Democratic primary debate with Hillary
Clinton that he would demand the renegotiation of the North
American Free Trade Agreement, free traders cringed. Was Obama
really serious? Was he only pandering to his trade unionist
supporters? Shortly thereafter, Obama reportedly told senior
Canadian officials that his comments about NAFTA were meant
for political consumption in the U.S. The doubts, however, linger.
As for McCain, when it comes to economic issues, the Republican
candidate looks very uncomfortable, and probably unconvincing
to many voters undecided about the virtues of free trade. By
McCain's own admission, national security issues are his strong
suit, not economics. Even if McCain were to win the White House,
he'd have a hard time winning any battle for free trade in the
next Congress, which will undoubtedly be controlled by the Democrats.
Many Democrats in the House and Senate will be determined to
oppose the Colombia and South Korea deals, especially if their
candidate is defeated by McCain in a bitter presidential campaign.
To keep the trade agenda alive, the next president will have
to win bipartisan support for free trade by explaining exactly
what it means, and what it does not. He will need to convince
the American public that, on balance, trade deregulation has
created a great many jobs and generated significant economic
growth. The next president will need to articulate a vision
of free trade as a part of the long-term solution, not the cause
of today's economic woes.
Given widespread ignorance and confusion, that task will be
a tall order.
By Alan Field



