Canadian NAFTA Remarks Rile Obama Campaign
Senator's Senior Economic Advisor Says Diplomats Inaccurately Portrayed His Trade Stance
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Democratic presidential hopeful Sen. Barack Obama, D-Ill., looks on as he walks along his tour of the National Gypsum plant Sunday, Feb. 24, 2008, in Lorain, Ohio. (AP Photo/Rick Bowmer)
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The memo is the first documentation to emerge publicly out of the meeting between the adviser, Austan Goolsbee, and officials with the Canadian consulate in Chicago, but Goolsbee said it misinterprets what he told them. The memo was written by Joseph DeMora, who works for the consulate and attended the meeting.
"Noting anxiety among many U.S. domestic audiences about the U.S. economic outlook, Goolsbee candidly acknowledged the protectionist sentiment that has emerged, particularly in the Midwest, during the primary campaign," the memo said. "He cautioned that this messaging should not be taken out of context and should be viewed as more about political positioning than a clear articulation of policy plans."
Goolsbee disputed the characterization from the conservative government official.
"This thing about 'it's more about political positioning than a clear articulation of policy plans,' that's this guy's language," Goolsbee said of DeMora. "He's not quoting me.
"I certainly did not use that phrase in any way," he said.
The meeting was first reported last week by Canadian television network CTV, which cited unnamed sources as saying that Goolsbee assured the Canadians that Obama's tough talk on the North American Free Trade Agreement is just campaign rhetoric not to be taken seriously. The Obama campaign and the Canadian embassy denied there was any inconsistency between what the candidate was saying publicly and what advisers were saying privately.
NAFTA is widely opposed in economically depressed Ohio, which holds its presidential primary Tuesday and is a key battleground between Obama and Clinton. Both candidates said in a debate in Cleveland last week that they would renegotiate the trade agreement between the United States, Canada and Mexico, which is the largest trading partnership in the world, and threaten to pull out if it doesn't include more protections for workers and the environment.
Clinton said Monday that Obama's campaign gave the Canadians "the old wink-wink."
"I think that's the kind of difference between talk and action that I've been talking about," Clinton told reporters while campaigning in Ohio. "It raises questions about Senator Obama coming to Ohio and giving speeches against NAFTA."
On Friday, Republican John McCain said the desire by his Democratic presidential rivals to renegotiate the terms of NAFTA would jeopardize crucial military support from Canada. (See related story.)
The memo obtained by the AP was widely distributed within the Canadian government. It is more than 1,300 words and covers many topics that DeMora said were discussed in the Feb. 8 "introductory meeting" between himself, Goolsbee and the consul general in Chicago, Georges Rioux.
Goolsbee "was frank in saying that the primary campaign has been necessarily domestically focused, particularly in the Midwest, and that much of the rhetoric that may be perceived to be protectionist is more reflective of political maneuvering than policy," the memo's introduction said. "On NAFTA, Goolsbee suggested that Obama is less about fundamentally changing the agreement and more in favour of strengthening/clarifying language on labour mobility and environment and trying to establish these as more `core' principles of the agreement."
Goolsbee said that sentence is true and consistent with Obama's position. But he said other portions of the memo were inaccurate.
"I think we should use the hammer of a potential opt-out as leverage to ensure that we actually get labor and environmental standards that are enforced," Obama said in the debate last week.
Goolsbee said he has been surprised that such a banal and trivial meeting with a low-level consulate official has created so much controversy and resulted in such an inaccurate depiction. He said he was invited to the consulate to meet the officials and get a tour.
He said the visit lasted about 40 minutes, and perhaps two to three minutes were spent discussing NAFTA. He said the Canadians asked about Obama's position, and he replied about his interest in improving labor and environmental standards, and they raised some concerns that Obama sounds like a protectionist.
He said he responded that Obama is not a protectionist, but that the Illinois senator tries to strike a balance between the economic struggles of working Americans and recognizing that free trade is good for the economy.
"That's a pretty ham-handed description of what I answered," Goolsbee said of memo's description of "political positioning." "A: In no possible way was that a reference to NAFTA. And B: In no possible way was I inferring that he was going to introduce any policies that you should ignore and he had no intention of enacting. Those are both completely crazy."
Tristan Landry, a spokesman for the Canadian embassy in Washington, said DeMora was not available for an interview Sunday. His only comment on the memo was to say that although consulate officials reach out to U.S. campaign officials to seek their views, "Canada does not in any way seek to interfere in U.S. electoral politics."
Canada supports NAFTA and does not want to see it interrupted.
The Canadian memo said that when Rioux "asked whether we could expect to hear more of this as the elections progressed, Goolsbee thought not. In fact, he mentioned that going forward the Obama camp was going to be careful to send the appropriate message without coming off too protectionist.
"As Obama continues to court the economic populist vote, particularly in upcoming contests like Ohio, we are likely to see a continuation of some of the messaging that hasn't played in Canada's favour, but this should continue to be viewed in the context in which it is delivered," DeMora wrote in the closing section.
Obama spokesman Bill Burton said Goolsbee's visit was not as an emissary from the campaign, but as a professor from the University of Chicago. He was not authorized to share any messages from the campaign, Burton said.
Burton, who was on the call while Goolsbee described his visit to the AP, said, "It all boils down to a clumsy, inaccurate portrayal of the conversation."
Asked if he agreed with Burton's summary, Goolsbee said he did.
© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.




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showing the value of NAFTA to the U.S.
(continued)
"BENEFIT TO U.S.
But the real story, from a U.S. electoral point of view, is the one Obama and Clinton deliberately ignore. Free trade has been hugely beneficial to U.S. workers, too. For 36 of 50 U.S. states, Canada is the leading export market. That includes all the powerful border states -- Ohio, Michigan, New York. But it also includes some states you might not expect -- Georgia, Kansas, Tennessee, South Carolina.
In 2006, according to Canadian government data, Ohio alone exported $18 billion worth of merchandise to Cdn customers. A big chunk of that was in transportation and metal products, related to the auto industry. We bought $3.4 billion worth of their auto parts, and $2.1 billion worth of their cars. And here''s another interesting tidbit: In 2006 Ohio imported $4.2 billion worth of Cdn crude oil.
Of course, Ohio isn''t the only state that needs Cdn energy, as Industry Minister David Emerson pointed out Wednesday. At last count, Canada provided about 18% of the United States'' foreign oil supply -- more than any other source including Saudi Arabia, which provides about 15%. Canada accounts for almost all of the United States'' natural gas imports, which are critical to, among other things, keeping lights on in California.
(continued)
Net result? As Emerson not so subtly intimates, a future President Obama won''t want to keep his promise of tearing up NAFTA, because the pact is integral to U.S. economic health and energy security. The Americans need free trade at least as much as we do. Obama is trading in campaign rhetoric. In policy terms it''s meaningless."
Does Canada the government as well as Canada the people both support NAFTA or is it just the government or neither?
I read in other articles that the Canadian people hate it, and the Government''s chomping at the bit to rework it too.
Also, what''s the Canadian government''s stance on this whole dust-up? I would imagine they''re probably not eager to get off on the wrong foot with the person who might possibly be the next President and would therefore be eager to chalk this up to a miscommunication (?)
It happens to all politicians I suppose . . . one just needs to look at Hillary Clinton (''I voted for that bill but hoped it wouldn''t pass'') and John McCain (''100 years in Iraq would be fine with me'') to see how even the seasoned veterans say things which in this day and age get media coverage again and again much to their dismay . . .
I think the important point to take away from this story is that the statements of fact in the memo acknowledge that Obama''s position to the Canadian Consulate is exactly the position he''s been asserting in public ("On NAFTA, Goolsbee suggested that Obama is less about fundamentally changing the agreement and more in favour of strengthening/clarifying language on labour mobility and environment and trying to establish these as more `core'' principles of the agreement.")
It''s capitalism that benefits everybody . . . NAFTA 1.0 might have increased the net worth of a select few, but lowered the net welfare of a whole lot more. Hopefully NAFTA 2.0 will still increase the net worth of some people AND increase the net welfare of the rest of us as well.
The increase in wealth disparity is a well-established by-product of most if not all trade agreements, isn''t it? Apparently trade agreements often depress wages for workers as well.
Okay, I just saw this - however it''s the Conservatives that are in power in Canada? And Canadians really think we''re not going to question this denial that "Canada does not in any way seek to interfere in U.S. electoral politics."
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"On Friday, Republican John McCain said the desire by his Democratic presidential rivals to renegotiate the terms of NAFTA would jeopardize crucial military support from Canada."
McCain''s out of his gourd - the Canadians announced a week before tried to fear-monger that they were planning on pulling their troops out of Afghanistan because of the lack of sustained effort due to US troop concentration in Iraq. The withdrawal decision has nothing to do with NAFTA. Is McCain just bananas or is he deliberately trying to deceive people?
HUSSEIN HAS ALREADY STARTED A RIFT WITH OUR ALLIES, CANADA.
HIS NAFTA RHETORIC, IS JUST TO TRICK VOTERS.
THE SIGNS ARE THERE, SOUNDS LIKE ANOTHER "TRUST ME" WOULD I LIE TO YOU, BUSH STYLE POLITICS, CONN JOB.
STAY THE COURSE.
Did you not know about that?
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Posted by kesac4650 at 06:11 AM : Mar 03, 2008
+ report abuse
I don''t know if Hillary or Obama will do anything. I do KNOW they are more likely to do something than is McCain. He''s already flatly said we can forget it. I also know that Democrats are MUCH more likely to respond to the will of the people than are the Republican''s.
And nancy_nieve-don''t quite get your post about "them giving us health care while we give them Walmart" (by the way, clinton and ms obama both have ties to Walmart). If you are inferring that we go to Canada for health care-WRONG! They come here. Canada does not take any US insurances and will not care for American uninsured. Get your facts straight.
Don''t see the story on obama chastizing ms clinton for her war vote. He made another gaff when he said the jay rockerfeller is supporting him and did not vote for the war. WRONG-rockerfeller voted for the war after reading the intelliegnce report.
Maybe obama needs another speech writer.
Anyhow, as usual, now we all are suppose to accept the statement put out by the Obama team. I have decided that Obama must take his shower with rubbing oil. No matter what he does or says nothing sticks! So he will just "slip" into the white house.
Who among us really doubt that Hilary would stab anyone or everyone in this country in the back--if it suited her personal aspirations and agenda? Even her supporters should have no illusions about that--even if her admire her for that attribute.
Who among us really doubt that Hilary would stab anyone or everyone in this country in the back--if it suited her personal aspirations and agenda? Even her supporters should have no illusions about that--even if THEY admire her for that attribute.
Posted by b-easy63 at 07:48 AM : Mar 03, 2008
The truth is Canada has a right-wing, Bush type, Bush supporting government, so anything any Democrat says will be spun and made controversial. There is always a political dynamic when different political parties are involved.
lol. Guess you missed all of the reports of Canadians buying up the one thing that has been through the roof in Canada for years...real estate. Canadians are said to be buying up parcels and housing in Arizona and other states faster than people from any other country. Why? because a 1000 sq ft home in many parts of Canada can cost over 500K. But in America, for the same money, they can often buy lots of land or even a mansion. If you think the advantage of NAFTA is merely about the advantage of importing and exporting--then you fail to see the bigger picture:
Americans can no longer support their own economy due to suppressed wages, lost jobs and industry to foreign markets, and the influx of workers who do not require benefits, pension plans, OSHA, workman''s comp etc. IN fact the industries are so ugly and the rules so easily sideswiped, that many colleges routinely limit the number of applicants for say--nursing and make the course work harder even if it is not applicable to nursing--so they can meet the criteria of seeking cheaper nurses outside the US due to a shortage they created and are maintainging themselves. When the economy fails, gov. steps in to lower rates which makes the dollar far weaker--which gets a lot of buying going on--but not from Americans--it is a beast that feeds on itself. But cannibalism is never a good thing--not even when the beast is as large as the US.
"Canadian government officials wrote an inaccurate portrayal . . . .
"He said he has been surprised that such a banal and trivial meeting with a low-level consulate official"
Interesting how they portray this guy as so much beneath them.
I suppose from this that the official was basically just a punkk.
More whining from the Hillary Klan. The media fawned over Hillary for over a year as the virtual nominee before a single vote was cast. I didn''t hear her supporters hining about that; the whining started when the voters started rejecting her!
Hillary isn''t meeting with the Canadiens because her promises to amend NAFTA really are posturing that she has no intention of following up on. Obama is also posturing for the voters but he''s also demonstrating to Americans and Canadiens that he''s serious.
I''m being honest about my canidate''s posturing, why doon''t you try being honest about your candidates politics for once!
They were suppose to decrease gas prices, because we ousted Saddam. Reasons to raise gas prices: 1.the pressure is on to reinvestigate the Bush people for committing 911, 2. make democrat travel expenses high to make them ineffective in the election. To keep the Obama lie alive, because they are afraid Hillary will Impeach Bush and Cheney. Obama never voted on the Iraq War, because he was never a Senator at the time in 2002.
when the wold market is one sided you lose jobs
when you let wall street greed rule you lose jobs
NAFTA started as a way to even the playing field
for american products on the market wall street put
american jobs on the market
They were suppose to decrease gas prices, because we ousted Saddam. Reasons to raise gas prices: 1.the pressure is on to reinvestigate the Bush people for committing 911, 2. make democrat travel expenses high to make them ineffective in the election. To keep the Obama lie alive, because they are afraid Hillary will Impeach Bush and Cheney. Obama never voted on the Iraq War, because he was never a Senator at the time in 2002.
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Posted by tomtomasters at 08:00 AM : Mar 03, 2008
With corporate stooge candidates,and "informed" voters such as the above,I see no hope whatsoever of getting out of the mess were in.Until the people of this country decide they''ve had enough,and refuse to participate,there is no hope.
Posted by tbweb at 07:50 AM : Mar 03, 2008
-You may have it bullseye here tbweb, Monkey Bush and Monkey Harper and Monkey Calderone from Mexico met together last July in Canada to hammer a North American Union. I guess one similar to the United States of America, but larger (WOOOOOH!) with a unique monetary policy, in order to compete with the Europeans. In this regard, Canadians and Mexicans are part of decision makings in United State with no real vote for the time being! Still, we have rightists and leftists in all three countries here.
My condolences to Ohio.
It is not your fault.
It is not your fault your state is stuck on stupid.
A state is usually rewarded for giving a president its victory.
In your case you were sent to the unemployement line with a Bible in your hand and a marriage ring on your finger.
As gump said, "Stupid is as stupid does."
Be humble, read the Bible and have no expectations.
While there is logic to your post, let me point out that the job loss started in the 70s, when the automakers first laid of hundreds of thousands of workers in Detroit. All of the related services and suppliers to the factories followed suit, from sand for the glass to coal for the foundries. The ripple effect devastated the middle class throughout America, and it was cheered on by Wall Street and the crooked politicians of the day, starting with "trickle down" Reagan.
This problem was only made worse by the war criminals now in office, but it certainly didn''t begin there.
to day.Questions about Obama funding from Iarqi Nadhmi Auchi Chicago politics Barack Hussein Obama
should have stayed in Hawaii but there would not
have been elected Dog catcher
Opensecrets. org has the breakdown.
As a born and raised Buckeye myself I can assure you that the Ohioans losing their jobs are not dumb.
NAFTA is not responsible for every Corporation''s decision to outsource and it''s true that the mutual removal of tariffs have made many American products easier to sell overseas.
That said, it would be dumb to think that the absense of worker and environmental protections from the initial agreement did not further weight the playing field against American workers.
We can''t insulate ourselves from global competition with the old style protectionism of tariffs but we can insist on a level playing field in every aspect but pay(we can''t force companies in India & Mexico to pay workers $20 per hour).
If hourly pay were the only factor against American woorkers and not also healthcare costs, pension obligations, environmental costs, labor regulations, etc. we could compete on productivity/quality and proximity to market.
We can either reduce all our standards down to 3rd world status or work to bring the rest of the world up to a level closer to our standards.
Posted by b-easy63
As an employee of a company that has thousands of H1B workers, I can assure you it is the American worker that gets downsized when the time comes. Also, many of these H1Bs have made it into management and show a preference to hiring one of their own.
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Posted by realpatriot1
This is exactly what the trade agreements were sold to the American public on raise the standard of living in other nations so that they could buy OUR products and PROMOTE democracy. It did not work, because there were no teeth in any of the agreements that began in the 70 ties accelerated under Ronnie and then Willie, we are fastly approaching third world status and 1984 on account of these unbalanced agreements.
And why are these jobs outsourced? Because the Indians accept 1/5 the salary of Americans.
So, while the workers are oppressed in India, our workers are laid off. And these are NOT low-pay jobs.
Free trade means equal playing field. If the Indians were paid more, then they could buy more American products. Then, everyone would win.
Instead, our government signs these NAFTA agreements and allows more and more H1B workers in every year.
What is good for business is not always good for the American worker.
And why are these jobs outsourced? Because the Indians accept 1/5 the salary of Americans.
So, while the workers are oppressed in India, our workers are laid off. And these are NOT low-pay jobs.
Free trade means equal playing field. If the Indians were paid more, then they could buy more American products. Then, everyone would win.
Instead, our government signs these NAFTA agreements and allows more and more H1B workers in every year.
What is good for business is not always good for the American worker.
every thing above the table RightVoices.com
Obama Rezko Aucchi and the funding and hear are the
WORDS OF Mr.Obama THAT BONEHEADED MISTAKE yeah
and he talks about JUDGEMENT
Posted by radiob
The fact that we don''t have free trade agreements with the UK, France or Germany demonstrates that they really don''t want "free trade" in the form of business competition, they want free trade in the form of labor competition.
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