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Title: Obama: NAFTA not so bad after all
Source: Fortune
URL Source: http://money.cnn.com/2008/06/18/mag ... dex.htm?postversion=2008061810
Published: Jun 18, 2008
Author: Nina Easton
Post Date: 2008-06-18 17:41:05 by Jethro Tull
Keywords: None
Views: 280
Comments: 18

Obama: NAFTA not so bad after all

The Democratic nominee, in an interview with Fortune, says he wants free trade "to work for all people."

By Nina Easton, Washington editor

WASHINGTON (Fortune) -- The general campaign is on, independent voters are up for grabs, and Barack Obama is toning down his populist rhetoric - at least when it comes to free trade.

In an interview with Fortune to be featured in the magazine's upcoming issue, the presumptive Democratic nominee backed off his harshest attacks on the free trade agreement and indicated he didn't want to unilaterally reopen negotiations on NAFTA.

"Sometimes during campaigns the rhetoric gets overheated and amplified," he conceded, after I reminded him that he had called NAFTA "devastating" and "a big mistake," despite nonpartisan studies concluding that the trade zone has had a mild, positive effect on the U.S. economy.

Does that mean his rhetoric was overheated and amplified? "Politicians are always guilty of that, and I don't exempt myself," he answered.

Obama says he believes in "opening up a dialogue" with trading partners Canada and Mexico "and figuring to how we can make this work for all people."

Obama spokesman Bill Burton said that Obama-as the candidate noted in Fortune's interview-has not changed his core position on NAFTA, and that he has always said he would talk to the leaders of Canada and Mexico in an effort to include enforceable labor and environmental standards in the pact.

Nevertheless, Obama's tone stands in marked contrast to his primary campaign's anti-NAFTA fusillades. The pact creating a North American free-trade zone was President Bill Clinton's signature accomplishment; but NAFTA is also the bugaboo of union leaders, grassroots activists and Midwesterners who blame free trade for the factory closings they see in their hometowns.

The Democratic candidates fought hard to win over those factions of their party, with Obama generally following Hillary Clinton's lead in setting a protectionist tone.

In February, as the campaign moved into the Rust Belt, both candidates vowed to invoke a six-month opt-out clause ("as a hammer," in Obama's words) to pressure Canada and Mexico to make concessions.

Canadian Prime Minister Stephen Harper called that threat a mistake, and other leaders abroad expressed worries about their trade deals. Leading House Democrats, including Democratic Caucus Chairman Rahm Emanuel, distanced themselves from the candidates.

Now, however, Obama says he doesn't believe in unilaterally reopening NAFTA. On the afternoon that I sat down with him to discuss the economy, Obama said he had just spoken with Harper, who had called to congratulate him on winning the nomination.

"I'm not a big believer in doing things unilaterally," Obama said. "I'm a big believer in opening up a dialogue and figuring out how we can make this work for all people."

Obama has repeatedly described himself as a free-trade proponent who wants to be a "better bargainer" on behalf of U.S. interests and wants agreements to include labor and environmental standards.

In May 2007, congressional Democrats and the Bush administration agreed to a plan to include environmental and international labor standards in upcoming trade agreements. Still, later that year Obama supported one agreement (Peru) and opposed three others (Panama, Colombia, South Korea). Labor leaders - many of whom backed Obama in the primary - were the chief opponents of those pacts.

Obama jumped into the anti-trade waters with Clinton even though his top economics adviser, the University of Chicago's Austan Goolsbee, has written that America's wage gap is primarily the result of a globalized information economy - not free trade.

On Feb. 8, Goolsbee met with the Canadian consul general in Chicago and offered assurances that Obama's rhetoric was "more reflective of political maneuvering than policy," according to a Canadian memo summarizing the meeting that was obtained by Fortune. "In fact," the Canadian memo said, Goolsbee "mentioned that going forward the Obama camp was going to be careful to send the appropriate message without coming off as too protectionist."

In the Fortune interview, Obama noted that despite his support for opening markets, "there are costs to free trade" that must be recognized. He noted that under NAFTA, a more efficient U.S. agricultural industry displaced Mexican farmers, adding to the problem of illegal immigration.

We "can't pretend that those costs aren't real," Obama added. Otherwise, he added, it feeds "the protectionist sentiment and the anti-immigration sentiment that is out there in both parties."

Obama also reiterated his determination to be a tougher trade bargainer. "The Chinese love free trade," he said, "but they are tough as nails when it comes to a bargain, right? They will resist any calls to stop manipulating their currency. It's no secret they have consistently encroached on our intellectual property and our copyright laws. ...We should make sure in our trade negotiations that our interests and our values are adequately reflected."

Republican nominee John McCain, for his part, is emphasizing his consistent position as a free-trader. In a press conference in Boston this week, he attacked Obama as protectionist: "Senator Obama said that he would unilaterally - unilaterally! - renegotiate the North American Free Trade Agreement, where 33 percent of our trade exists. And you know what message that sends? That no agreement is sacred if someone declares that as president of the United States they would unilaterally renegotiate it. I stand for free trade, and with all the difficulties and economic troubles we're in today, there's a real bright spot and that's our exports. Protectionism does not work."


Poster Comment:

Check this out. He just turned his back on his base on Iraq and now it's NAFTA.

Words...they all fell for a politician's words....

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Begin Trace Mode for Comment # 15.

#1. To: Jethro Tull (#0)

Turds of a feather, swirl together.

Peppa  posted on  2008-06-18   17:45:16 ET  Reply   Untrace   Trace   Private Reply  


#15. To: Peppa (#1)

The pact creating a North American free-trade zone was President Bill Clinton's signature accomplishmen

North American Agreement on Environmental Cooperation

The North American Agreement on Environmental Cooperation (NAAEC) was a response to environmentalists' concerns that the United States would lower its standards if the three countries did not achieve consistent environmental regulation. The NAAEC only obligates parties to enforce their own environmental laws. The NAAEC, in an endeavour to be more than a set of environmental regulations, established the North American Commission for Environmental Cooperation, a mechanism for addressing trade and environmental issues, the North American Development Bank (NADBank) for assisting and financing investments in pollution reduction, and the Border Environmental Cooperation Commission (BECC). The NADBank and the BECC have provided economic benefits to Mexico by financing 36 projects, mostly in the water sector.[2]

North American Agreement on Labor Cooperation

The North American Agreement on Labor Cooperation (NAALC) supplements NAFTA and endeavors to create a foundation for cooperation among the three countries for the resolution of labor problems, as well as to promote greater cooperation among trade unions and social organizations in order to fight for improved labor conditions. Though most economists agree that it is difficult to assess the direct impact of the NAALC, it is agreed that there has been a convergence of labor standards in North America.

NAFTA was initially pursued by politicians in the United States and Canada supportive of free trade, led by Canadian Prime Minister Brian Mulroney, U.S. President George H. W. Bush, and the Mexican President Carlos Salinas de Gortari. The three countries signed NAFTA in December 1992. Since the agreement had been signed by Bush under his fast-track prerogative, Clinton did not alter the original agreement, but complemented it with the aforementioned NAAEC and NAALC.

U.S. House of Representatives passed NAFTA

(132 Republicans and 102 Democrats voting in favor; 43 Republicans, 156 Democrats, and 1 independent against)

the U.S. Senate passed NAFTA

(34 Republicans and 27 Democrats voting in favor; 10 Republicans and 28 Democrats against, with 1 Democrat opponent not voting - Sen. Byron Dorgan (D-ND), an ardent foe of NAFTA, missed the vote because of an illness in his family).

bush_is_a_moonie  posted on  2008-06-18   21:04:20 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 15.

#17. To: bush_is_a_moonie (#15)

Yes. Globalista's. High Cabal.

Peppa  posted on  2008-06-18 21:09:21 ET  Reply   Untrace   Trace   Private Reply  


#18. To: bush_is_a_moonie (#15)

Correct, b_i_a_m.....NAFTA is a gift to corporate America from both wings of the National Party.

Jethro Tull  posted on  2008-06-18 21:09:47 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 15.

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