Canadian NAFTA Remarks Rile Obama Campaign

Senator's Senior Economic Advisor Says Diplomats Inaccurately Portrayed His Trade Stance

(CBS/AP)  Barack Obama's senior economic policy adviser privately told Canadian officials to view the debate in Ohio over trade as "political positioning," according to a memo obtained by The Associated Press that was rejected by the adviser and held up Monday as evidence of doublespeak by rival Hillary Rodham Clinton.

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.

[sjbj2322]

Obama initially lied up one side and down the other as did his campaign stratagist that the meeting even took place. Now the truth comes out and we''re supposed to believe that one sentence out of the entire document is all that is correct. Moreover we''re supposed to believe that when it really boils down to it, Goolsbee didn''t have any authority to speak for the campaign even though Burton was on the phone with him.....Hahahaha!! Right! Obama and his team finally got caught with their game of promising one group one thing while promising another something else. Wonder if this will make any of his supporters put down the Koolaid at least long enough to avoid choking on the last big gulp they swallowed.

[girlinvt-2009]

Well he lied,he said nobody went to or talked to Canadian officials.Now after the voters found out differant its no big deal.Well its a big deal it goes to judgement.As to Hillary tearing the party apart really so far Mr.Judgement is only 310,000 popular votes ahead,and it aint over yet now is it.As to the unifier he will not get my vote McCain will.I do not trust Obama.

[popstom1]

Obama campagin has been on the record CATEGORICALLY
denying that such a metting took place with the
canadian''s new memo show''s that was a big LIE
What else is he going TALK tought ON

[popstom1]

The northern slop of Alaska Has just as much and so does I am going spell this wong the yucatan valley in
mexico as long as they can suck us dry Big Oil won''t
develop it

[yamuttya]

Canadian oil becomes viable when you are paying over $4 a gallon for gas. Posted by taddles


Posted by taddles at 11:20 AM : Mar 03, 2008

NEWS FLASH !!!!

OIL IS $100. a barrel !!!!

[north1949]

Everyone pays the same market price,Popstom. My point is that current conditions have made it profitable and feasible to develop this resource. It is a demonstrated reserve of about 140 years at present volumes. The US reserve of proven petroleum is 12 years.

[popstom1]

north1949 take look at what we pay for that 35Bbl.

[popstom1]

Obama Rezko Auchi the funding for that boneheaded
Mistake He made the judgement call and took the money
made the deal will come out soon

[taddles-2009]

"Trader is what the dictionary would call it.

Posted by noregion5 at 01:59 PM : Mar 03, 2008"

That would be "Traitor" and you obviously didn''t bother with the dictionary which makes one think you probably didn''t bother to look up ANY of the cr4p you posted.

[taddles-2009]

"Mr Auchi, leading supplier of arms to Saddam''''s regime and convicted for corruption in France, the British-Iraqi billionaire lent millions and millions of dollars to Barack Obama''''s fund just weeks before an imprudent land deal investigation.

Posted by rozz62 at 12:59 PM : Mar 03, 2008"

Well aside from the fact that you changed the article and removed Tony Rezko''s name and added Barack Obama''s you might have had an argument here. But what you have instead is a false statement that makes you look stupid. Auchi loaned 3.5 million to Tony Rezko, not to Barak Obama.

[smashwl7]

Hillary Clinton is going to destroy the Democratic Party, she will fracture Democratic support mark my words America! McCain may win in November and our country is going to face some of the worse financial times in American history. Further we are about to embark on a new world war with McCain at the helm. God help us all. We are going to need someone with Obama%u2019s talents to help us all pull together to get thru what I see coming. God Bless You All!

[noregion5]

Obama, Clinton, and McCain are going to accomplish the same "big picture", it goes hand in hand with Bush, out of the shadows. You educated commentors are just mongers to: pro global, lifting borders, giving up USA power, letting the Americans drop there pants and drop our country status. Step outside of the corporate URBAN area and get a whiff of some fresh country RURAL air, so you can get oxygen to ground you back to reality! Not all Americans want to lose what USA stands for. There is a way to upgrade and be global without selling out Americans! Take your super highway to he11 and have AC/DC replace the Bush Admin. we''ll be just as well off.

[noregion5]

middelman, your the corruption that has caused this great nation to be in shambles, go back to what rock you crawled off from under. The true Americans don''t want a middle man anyway. Pathetic responce that is unexceptable. Trader is what the dictionary would call it.

[abbe91]

"Wake up America. OBAMA talks the talk but cant walk the walk. OBAMA is devious as the trial of his money bagman REZKO will uncover. REZKO''''s TRIAL starts today, March 3,2008.
Posted by nomeski at 01:33 PM : Mar 03, 2008"

Links with Rezko won''t prevent somebody to become president. See GWB, for example.

[noregion5]

Obama shouldn''t have the rank to be discussing NAFTA with Canada at this point in the race! Again, back door dancing, the article claims will affect our military relations w/Canada. These front runners are more worried about getting "there" super highway with corporate money, than the American Soveregnity! Some need to realize this race for the president is no longer between a political party, it is about what a person stands for, are they for "your" beliefs of what the USA should advance toward. Personally, we need to get this country safe w/the current trade products,people,and technology before a super highway is built to give an express lane with our existing problems. This is causing conflict with other country''s prior to the people of USA having knowledge of what the heck the front runners objectives are! All 3 for the same super-something with the people out of the loop.

[sharhut]

Wake up America. OBAMA talks the talk but cant walk the walk. OBAMA is devious as the trial of his money bagman REZKO will uncover. REZKO''s TRIAL starts today, March 3,2008.

[lochlan-2009]

MORE MISINFORMATION!!! Now called swift boating.

The question is, is the media going to point out, over and over and over, the truth or the lie.

[barryrose1]

I think they have to trim Bushie''s nose back daily or it would ressemble a missle. The whole Republican party is so nosy(wiretapping) they should blow themselves

[frankbowers]

I have never seen so much hot air in my life barak could float a very large hot air baloon with the promises hes has made he can not, I say CAN NOT ever come through, they are just like the sand castles on the beach that I build in the early 30"s, the first wave will wash them away. The republicans are flocking to the primaries to vote for him and they will lrun home to McCain when the real votes count. Where as Hillary could win if she get the oppertunity to run agains McCain.
Who really belives the lilly white republican party persons will vote for a balck when it counts, it is the black kids in Iraq and Mc Cain knows this and does not care to stop the war for oil prices.
Adios to barak and hello to Hillary.
Frank Bowers in Austin, TX

[johnlarlee]

No NAFTA, no water and no oil. "Fill yer boots", Hillary. The worm has turned! John