Saturday, November 1, 2008

Obama and Trade: We Disagree

TW: There are not many issues about which I unquivocally disagree with Obama, but his populist trade banter would be one of them. He has greatly softened his stance on free trade since the primaries when Clinton was potentially out-flanking him to the left on the issue, but he still has a ways to go. I am more or less an absolutist on free trade, the more open we are the better off we will be. I am confident that once in office Obama will do the right thing much like Bill Clinton did in 1993 in pushing NAFTA in one of his bigger accomplishments of his Presidency.

From the Economist:
"Mr Obama has not been a full-throated supporter of trade during this campaign, and it's no wonder that this is the issue on which economists, who generally, as a profession, support Mr Obama, have the least confidence in him. In the past, Mr Obama has displayed a real knowledge of and a belief in the economic advantages of trade, and I hope that if elected he will remember those sentiments.
I also feel that Mr Obama's trade statements and votes do not at all justify the label protectionist, nor do I feel that those statements alone constitute a reason enough to vote against him. There is a difference in pushing for trade deals with better labour and environmental standards in a climate where barriers largely stand at historically low levels, and in pressing for efforts to increase existing barriers. It is also important to consider whether tariffs are the principle barrier to trade these days in determining who is the protectionist. An America under John McCain might well expel Russia from the G-8 and increase tensions with Iran, while refusing to involve itself in meaningful international negotiations on climate policy and financial regulation.
Moreover, a candidate who has the confidence of working people might actually have a freer hand to pursue American economic engagement abroad. Trade policy is important, but trade policy cannot be considered in a vacuum..."

http://www.economist.com/blogs/freeexchange/2008/10/link_exchange_65.cfm

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