Obama's Balancing Act On Free Trade

CBSNews.com Reports: The Democrat Fights Charges Of Pandering And Protectionism As He Lays Out Trade Policy

(CBS)  This story was written by CBSNews.com political reporter Brian Montopoli.

---

During the Democratic primary battle, Barack Obama repeatedly criticized the North American Free Trade Agreement as bad for America, noting that "we can't keep passing unfair trade deals like NAFTA that put special interests over workers' interests."

There were political advantages for Obama (and then-rival Hillary Clinton) in railing against the agreement, which many in the labor movement - a key component of the Democratic base - blame for the loss of blue-collar jobs.

But there may be something of a gap between the reality of Obama's position and the impression his words left. During the primary, Obama vowed to renegotiate NAFTA - and opt-out of the agreement if Canada and Mexico refused to join in doing so - but his plans, as they now stand, do not represent a significant overhaul of the agreement.

The primary change would be the addition of environmental and labor provisions, similar to those included in a recent trade agreement with Peru, that many economists say will not have much impact on the U.S. job market.

"Mexico and Canada could accept the same deal that Peru accepted and it wouldn't cause a big problem internationally, nor would it make much of a difference for U.S. workers or create any new jobs in the United States," said Jeffrey J. Schott, a senior fellow at the Peterson Institute for International Economics.

Obama also appears to be backing off somewhat from his heated rhetoric from the primary campaign. He suggested in an interview with Fortune this week that he doesn't want to unilaterally renegotiate NAFTA, adding that "[s]ometimes during campaigns the rhetoric gets overheated and amplified."

Obama has made clear in speeches that he does not oppose global trade: In a speech Monday in Flint, Michigan, he said he disagrees with those who believe "that the only chance to maintain our living standards is to build a fortress around America [and] to stop trading with other countries."

But the campaign of presumptive GOP nominee John McCain has seized on Obama's NAFTA rhetoric, as well as his opposition to trade deals with South Korea and Columbia, to suggest that the presumptive nominee could be considered "the most protectionist candidate that the Democratic Party has ever fielded," in the words of McCain adviser Carly Fiorina.

During a speech in Ottawa, Canada today on free trade, the Arizona senator, who supports the Korea and Columbia trade deals, did not mention Obama by name. But the target of his comments was clear.

"...even now, for all the successes of NAFTA, we have to defend it without equivocation in political debate, because it is critical to the future of so many Canadian and American workers and businesses," McCain said, according to his remarks as prepared for delivery. "Demanding unilateral changes and threatening to abrogate an agreement that has increased trade and prosperity is nothing more than retreating behind protectionist walls."

Obama economic advisor economic advisor Daniel Tarullo sharply disputes the characterization of Obama as protectionist. He suggests that the candidate wants a trade policy that shifts the benefits of globalization more in favor of labor, and argues that there are both economic and ethical considerations behind renegotiating NAFTA. Doing so, he argues, would help level the playing field by making it easier to eliminate practices like child labor and lax environmental regulation in foreign countries, both of which put American workers at a disadvantage.

"Senator Obama recognizes the impact of trade upon all Americans and wants a trade policy that works for all Americans, as opposed to Senator McCain who appears to never having seen a trade agreement he doesn't like," said Tarullo. "Senator McCain, like President Bush, appears to embrace these agreements across the board without an assessment of their impact on U.S. workers and on standards around the world."

Not all of Obama's free trade critics see the Illinois senator as protectionist: Some suggest that his rhetoric on the issue amounts to pandering, since the impact of his proposed new labor and environmental standards would be relatively minor while "the risks of renegotiation are huge," in the words of the Washington Post editorial board.

Obama's strong rhetoric on NAFTA, which most economists believe has been beneficial to U.S. interests, has also left him open to charges that he was overplaying how significant his proposed changes will be - an impression stoked by (disputed) reports that one of his economic advisors used back channels to assure the Canadian government that Obama's NAFTA rhetoric was more about politics than policy.

"He shouldn't make any promises to the Michigan worker that it's going to bring back their jobs," said one liberal economist who spoke on background.

Obama is surrounded by economic advisors who are largely supportive of free trade, and protectionist rhetoric won't enhance his stated plan to improve U.S. relations around the world. But he also covets the support of working-class voters in states like Ohio with whom such rhetoric can play well, leaving him walking a fine line as he addresses the issue in the run-up to the general election. (In an AP-Yahoo News conducted earlier this year, 64 percent of those polled said increasing international trade has hurt the economy.) Like many Democrats, Obama recently supported a Farm Bill that critics consider effectively anti-trade.

Consider the Korea deal: Obama's objections are tied, in part, to opposition to the agreement from the United Auto Workers Union and Ford Motor Company, who say unfair barriers are keeping them from selling American cars in the country.

"If South Korea is selling hundreds of thousands of cars to the United States and we can only sell less than 5,000 in South Korea, something is wrong," Obama said last week. He also objects to restrictions on South Korean imports of U.S. beef, which are tied to U.S. safety standards and concerns about mad cow disease. (Koreans have protested over the issue.)

According to Schott, Obama's opposition to the deal is grounded in politics.

"We're going to have a large trade deficit with autos whether we have this deal or not," he said, arguing that there would be a political cost, as well as an economic one, should the deal fail.

But Tarullo says that Obama believes the deal, as negotiated by the Bush administration, simply does not do a good enough job of ensuring that U.S. products have effective access to the Korean market.

"American negotiators should drive a hard bargain to get what's in the best interests of American workers," he said.

[obama8years]

Yesterday I played a number of selections from a single Obama speech made in Pennsylvania over the weekend, excerpts which confirmed the growing sense that Obama has been swimming in the nonsense of the left for so long that he cannot cover it over even for the general election campaign.

It seems he really, really believes a lot of nonsense.

In the course of a single speech Obama asserted that offshore oil exploration would --in the very best scenario-- take five years to drive down the cost of gas 3 or 4 cents, but that an investment of 250 billion dollars five years ago would have produced an engine that didn''''t require fossil fuels.

Obama asserted that we could move to 40 MPG fuel standards for cars, and at another point asserted that the technology existed for 100 MPG cars, even as he asserted that exploration on the outer continental shelf and Alaska would cause permanent environmental damage.

Obama extolled a high school he had visited that --he firmly stated-- was majority Hispanic, and which had gone from a 50% drop-out rate to a 100% graduation and college enrollment rate in one year by using an Afro-American centric curriculum that focused on African music, then blues and jazz. Obama held out this school as an example of what could be achieved when students "were engaged in a curriculum that was interesting to them and seemed relevant to them."

[dotindixie]

RE:
"by using an Afro-American centric curriculum that focused on African music, then blues and jazz. Obama held out this school as an example of what could be achieved when students "were engaged in a curriculum that was interesting to them and seemed relevant to them."

I GUESS HE WAS LISTENING TO REVEREND WRIGHT ALL THOSE YEARS, WASN''T HE? SCARES H*LL OUT OF ME.

[crater7]

TRUE LIES:

LET US NOT FORGET OBAMA''S "NAFTA GATE" SECRETLY TALKING TO THE CANADIAN EMBASSY, AND WITH A WINK AND A NOD, "WE ARE NOT REALLY AGAINST NAFTA, JUST FOR SHOW."

LOL

GOD "BLESS" AMERICA. NOT "G D" AMERICA.

[max0010]

Tim Russert asked Obama about %u201Ckeeping his word%u201D on Public Financing----"Last year, you said, if you were the nominee, you would opt for public financing in the General Election ... and now, Senator McCain has said, calling your bluff, let''s do it. You seem to be waffling ... why won''t you keep your word -- in writing -- that you made ...?" - Tim Russert to Obama http://www.townhall.com/blog/g/d8aff992-e913-42b1-beeb-8a6ef506f355 Sadly, Tim Russert died a few days ago and didn%u2019t get to hear that Obama %u201Copted out of Public Financing%u201D. A man without his word is worthless%u2014how can you believe anything Obama says. What he says on NAFTA is just want he wants the voters to hear.

[l8c6]

We are reminded with every story headed by an advertising banner that Exxon Mobile has a gun pointed at all of our heads.

[samthetvcat]

pt 2
If McCain is intent on being aggressive about touting these failed policies of the ''90''s, I think the burden is on him to answer the question about what SPECIFIC jobs he forsees people getting IN RETURN due to his trade policies. Because manufacturing jobs haven''t been replaced with comparable jobs.

Trade is win-win when it''s on level and countries can look at their comparative advantages and say, gee both we and France have great wine. Why not remove the trade barriers so that we can buy each others'' wine for cheaper and then everybody will be on their toes and the wine will be better than ever and everybody will buy and drink more wine because it''s so great.

When you do trade with a country who''s not buying anything in return that costs us jobs (and therefore disposible income) and ratchets up our deficit (and lowers our dollar) you start to get that great income disparity which we''re already seeing - why should people sign up for more of that?

And finally, it''s appropriate to use tariffs on emerging markets to give corporations a chance to get caught up on technology. It might benefit us to put temporary tariffs on Japanese hybrid cars until US manufacturers can master the fuel cell battery to make here at home. Not sure why US car jobs ought to be gone for good . . .

[l8c6]

I''''ll be easier to win if I break my promise to you and not take public financing, he would have appeared to be more of a man and less of an absolute chicken-sh*t typical political hack.

Posted by ddhinnyc


I witnessed the video conference and he explained it very well. McCain is an old insider who has a long history of pandering to the lobbying power in Washington. Obama will better serve a greater less financially powerfully constituency by not accepting the limited public funds while McCain takes from those funds plus from the corporate oligarchy he represents.

[l8c6]

The corporate and financial oligarchy of the United States is as disturbed by a populist movement as Zimbabwe''s dictator Robert Mugabe''s is over democracy in that country.

[l8c6]

Obama held out this school as an example of what could be achieved when students "were engaged in a curriculum that was interesting to them and seemed relevant to them."

Posted by obama8years

Yeah, enough said, you don''t get it, we know. Not our problem.

[midland666]

Just bring on the Amero, and create the north american union.

[cbs4me3]

The quesion was asked elsewhere, who do pair McCain and Obama with in terms of Kerry and Bush. The answer is obvious. McCain and Kerry are both war heroes and have long served this Nation. We know the story of Obama and Bush. While McCain and Kerry have indepth experience, a record of accomplishment, and the trust of the American people, Obama and Bush lack experience, a record of accomplishment, and seemingly the trust of the American people. While Kerry was unsuccessful in his bid for president, McCain will succeed.

[l8c6]

And finally, it''''s appropriate to use tariffs on emerging markets to give corporations a chance to get caught up on technology. It might benefit us to put temporary tariffs on Japanese hybrid cars until US manufacturers can master the fuel cell battery to make here at home. Not sure why US car jobs ought to be gone for good . . .

Posted by SamTheTVCat


How dare you! That goes against a free market plus it''s protectionism. I say let Honda come in and put our cheap labor to use or just send us cars on a free unregulated market. It''s good for the consumer to let the market determine which companies have the vision and foresight to build products congruent with demand. The so called "american" corporations are global corporations, they don''t need U.S. government interfering to compete.

[likeitis5050]

Without my OhhhhhBama glasses and headphones, all I see is a man, not an angel or a demi-god, and all I hear is ''bwha bwhaaa bwha bwha bwha bwhaaa...''. I''m thinking a patch may be the answer to people needing help getting Obama out of their system....eventually rehab will have to be available...but it''s not too late for a patch. The first is admitting the addiction.

[samthetvcat]

pt 1
---"If South Korea is selling hundreds of thousands of cars to the United States and we can only sell less than 5,000 in South Korea, something is wrong," Obama said last week.---

grrr, what happened to my ''part 1''? I don''t remember what I said anymore LOL

Something about that the GOPig theory seems to be that (1) free trade expands markets initiating a trickle down effect, and that it (2) optimizes resources by channeling them into better use.

I think this theory''s been proven to not be sustainable in generating an optimal level of growth when (1) the ONLY comparative advantage of one nation is its cheap labor force due to the income disparity between the nations, and (2) there''s no other jobs available to take the place such that the poorer nation will be buying as many goods from the richer nation as the richer nation is buying from the poorer.

Otherwise are our resources in fact being optimized? Think of all the laid-off manufacturing workers who are now underemployed or unemployed . . .

[realtime09]

Does Barack really want us to sell cars to Korea???

What kind of hourly wage is he contemplating?


Perhaps "contemplation" is...too strong a word.

[reunionpi]

Obama''s mother''s original Social Security Number Application

www.webofdeception.com

[samthetvcat]

---"How dare you! That goes against a free market plus it''s protectionism."---
Posted by l8c6

Maybe you should read economic theory before you claim the mantle of self-righteousness. China used steel tariffs to establish their industry and now dominate the market internationally. That''s generally accepted to be the proper use of tariffs by even the most conservative economists.

It''s the difference between investing in ourselves so that we can optimize our prosperity and be in control of our own industry (protections for emerging markets), or accepting the Japanese as our bosses (l8c6''s preference)

konichi wa l8c6 . . . maybe you should just roll over and move to Japan . . .

[l8c6]

He has proven himself to be a typical policital hack, hiding from the media, and going against everything he promised his supporters. This is a man who cannot be trusted.

Posted by ddhinnyc


If anyone cares to see the video conference go to crooksandliars.com and don''t trouble yourself with the right wing deception of a corporate oligarchic hack.

[realtime09]

Barack would rather play Monopoly with advertising dollars, to get votes--when it is obvious he could have doubled his likely votes--by having Hillary Clinton for VP.

Now--IF he asks Hillary...
Hes going to look like he is flip-flopping to the max.

"I bring people together..."

[barocalto]

Obama is an empty suit that is why he will not meet John McCain in Townhall meetings. If Obama doesn''t have a teleprompter to read from he is lost.

Obama is the love child of former and the worst President ever JIMMY CARTER,just check out the ears and the rather dumb ideas he comes up with.

[realtime09]

Barack needs to take a break, go bowling, and have a smoke.

[l8c6]

SamTheTVCat

But do the corporations want or need this protectionism? That goes against a free unregulated market. You don''t suppose big government needs to stay out of the affairs of business?

[realtime09]

This is going to be entertaining--to see just how messed up Obama can get things to be.

He IS self destructive--watch and see!

He may actually start to have financial problems later in his campaign...

Then what?

[samthetvcat]

---"But do the corporations want or need this protectionism? That goes against a free unregulated market. You don''t suppose big government needs to stay out of the affairs of business?"---
Posted by l8c6

Sigh! Why don''t you read up on free trade theory and how it actually impacts the economy before you use generalities to act self-righteous . . .

[missingamerica]

Don''t you love how the system works these days? The exact same argument is used for continuing Iraq and inequitable free trade no matter what it costs us:

"It is too late! You''re already taking it up the rear. Letting go of your ankles in an attempt to stand up for your own interests won''t help you now!".

[jboxton]

I''ll bet Barack is all for trading with countries that produce a lot of bananas.

[rowdywicca]

I think technology has more to do with loss of jobs than free trade. I think the Free Trade thing is a smoke screen bull ***** put out for a talking point in an election year!

If there''s a machine that''ll do the job, it''s cheaper to maintain. And bosses everywhere have computers and do their own work, on them and file it away. Lots fewer secretaries, and clerks, accounting personnel. Mechanical bottling machines, loading machines. Large newspapers farm out printing to companies with print presses that are room-sized and only take a couple of people to run them. People send email, less postal workers. And on and on and on.

As for Obama, I bet if you''d check is his drawers are on backwards because he can''t figure out front and back! Much less a complicated political issue.

[missingamerica]

I think technology has more to do with loss of jobs than free trade. I think the Free Trade thing is a smoke screen bull ***** put out for a talking point in an election year!
[...]
As for Obama, I bet if you''''d check is his drawers are on backwards because he can''''t figure out front and back! Much less a complicated political issue.

Posted by RowdyWicca at 09:25 AM : Jun 20, 2008

You really think there is a big Xerox machine in China crankin'' out all of that stuff in Wal-Mart, eh?

lolll...all of that, just to justify an attack on Obama...

[von_marko]

Iraqi, U.S. Forces Take Over Al-Mahdi Stronghold

They came at dawn, thousands of Iraqi troops and U.S. special forces on a mission to reclaim a lawless city from the militias who ran it.

By the end of the day, al-Amarah was under Iraqi government control %u2014 without a shot being fired.

Great Job Iraqi Government & US Troops!!!!!
Too bad Obama will surrender soon.

[realtime09]

Show some respect!
Someday, all three dollar bills may bear Baracks likeness.

[rowdywicca]

As for Obama, I bet if you''''d check is his drawers are on backwards because he can''''t figure out front and back! Much less a complicated political issue.


--------------------------------------------------------------------------------

Posted by RowdyWicca at 09:25 AM : Jun 20, 2008

As an example, Free Trade. He can''t figure out if he''s for it or against it. More likely if he can squeeze a buck out of it, he''s for it, if he can''t then it''s a non-issue.

He talks out of one side of his mouth, the pukes krap out the other side! And the weird thing is people are just waiting around to absorb his vomit nonsense like it''s sacred words!

[barocalto]

Both McCain and Obama are politicians so you know they can''t be trusted. The difference with McCain is we''ve had twenty years to learn what he is all about. With The Obama you don''t know much and the more you learn the less you like him and the more like McCain.
I don''t like bigots no matter what color they are and anyone who attended Trinity Church for 20 years is a bigot just like KKK members the only difference is in the color of skin they hate.

[missingamerica]

By the end of the day, al-Amarah was under Iraqi government control %u2014 without a shot being fired.

Great Job Iraqi Government & US Troops!!!!!
Too bad Obama will surrender soon.

Posted by von_marko at 09:29 AM : Jun 20, 2008

lollll...perhaps my military experience makes me unduly cynical, but "without a shot being fired" is usually synonymous for "nobody was home".

[realtime09]

There is zero consistancy in Baracks public statements.

[realtime09]

"Spare Change We Can Hope For"

[von_marko]

Just how much Senate experience does Barack Obama have in terms of actual work days? Not much.

From the time Barack Obama was sworn in as a United State Senator, to the time he announced he was forming a Presidential exploratory committee, he logged 143 days of experience in the Senate. That%u2019s how many days the Senate was actually in session and working.
After 143 days of work experience, Obama believed he was ready to be Commander In Chief, Leader of the Free World, and fill the shoes of Abraham Lincoln, FDR, JFK and Ronald Reagan.

143 days %u2014 I keep leftovers in my refrigerator longer than that.

[missingamerica]

There is zero consistancy in Baracks public statements.

Posted by realtime09 at 09:33 AM : Jun 20, 2008

Wow...McCain supporters talking about "consistancy"...

What is the count, now? Isn''t McCain into his second dozen flip-flops?

[rowdywicca]

You really think there is a big Xerox machine in China crankin'''' out all of that stuff in Wal-Mart, eh?

lolll...all of that, just to justify an attack on Obama...


--------------------------------------------------------------------------------

Posted by ibsteve2u at 09:29 AM : Jun 20, 2008

Actually I was talking about the US. But ok, let''s talk about China.

You don''t like all that stuff China cranks out? Then throw out that fancy tv, your toaster, your microwave, your fancy coffee machine, your cell phone, most every do dad you have in your house. Drive your rice burner car over the cliff, and then talk about how much you hate Chinese manufacturing!

They have billions of people WORKING! Thanks to YOU!

If you were worried about China and job, you shoulda stood up yapped YEARS ago before you bought all their KRAP!

[realtime09]

I am entirely serious--as a lifelong democrat, and a vietnam vet:

Barack Obama is starting to swagger.
He won''t be able to restrain himself--he''s going to over-do that swagger.

He has a chip on his shoulder, and he thinks its invisable.

Watch.

Listen.

[rowdywicca]

If you were worried about China and job, you shoulda stood up yapped YEARS ago before you bought all their KRAP!


--------------------------------------------------------------------------------

Posted by RowdyWicca at 09:36 AM : Jun 20, 2008

People sitting in here yapping about China, pro''bly with half a ton of SILK FLOWER KRAP sitting around their house!

[missingamerica]

Huh...I see that this is pointless. Racism and greed have shown themselves to be proof against arguments of fact and logic for quite some time...

[rowdywicca]

There is zero consistancy in Baracks public statements.

Posted by realtime09 at 09:33 AM : Jun 20, 2008

Absolotootley! The man literally meets his own words coming on and off the the damned podium!

[missingamerica]

Don''t you love how the system works these days? The exact same argument is used for continuing Iraq and inequitable free trade no matter what it costs us:

"It is too late! You''re already taking it up the rear. Letting go of your ankles in an attempt to stand up for your own interests won''''t help you now!".

(Just to make the RNC and neoliberal/neocon trolls type some more to purge the front page.)

[realtime09]

I would strongly recommend that Hillary Clinton turn this fellow down if he ever even gets enough temporary grace to ask her belatedly to be VP.

The S.S. Barack, A sinking ship.

[rowdywicca]

Huh...I see that this is pointless. Racism and greed have shown themselves to be proof against arguments of fact and logic for quite some time...


--------------------------------------------------------------------------------

Posted by ibsteve2u at 09:39 AM : Jun 20, 2008

They sure have! Obama needs to decide whether he represents ALL the people of this country or NOT! His racism gig is wearing totally thin!

He seems to love big check writers when they writing checks to him, or when he''s writing one to buy support! But other than that, big money seems to be contemptible unless it''s working for HIM!

[von_marko]

Obama, "The Empty Suit"

Reminds me of a used car dealer. Promise anything, deliver a peice of junk.

[realtime09]

"I would strongly suggest that Hillary Clinton just hold on. She will be the nominee after the convention."
Posted by ddhinnyc

Yes this is certainly possible.

But CAN Barack run as VP--
remember him saying:

"I don''t understand why Hillary Clinton thinks I would make such a good vice president!"

[von_marko]

Obama Free Trade Policy:

1. Trade all your hard earned income in to the Government.
2. Trade in your freedom and security for whatever other countries think is best for us.
3. Trade your car in for a bus ticket.
4. Trade your future in for a repeat of the Carter years.
Too be continued....

[rowdywicca]

Obama Free Trade Policy:

1. Trade all your hard earned income in to the Government.
2. Trade in your freedom and security for whatever other countries think is best for us.
3. Trade your car in for a bus ticket.
4. Trade your future in for a repeat of the Carter years.
Too be continued....


--------------------------------------------------------------------------------

Posted by von_marko at 09:53 AM : Jun 20, 2008

Well said, and worth repeating!

[von_marko]

Obama Free Trade Policy:

5. Trade security for "hope"
6. Trade paychecks for wellfare checks
7. Trade "God Bless America" for "God D&^% America"