Friday, February 6, 2009

Profiles in Courage - Not

Trade protectionism is on the rise, in a reprise of policies that helped create the Great Depression of the 1930's.

And Barack Obama is largely AWOL on the issue.

It began with Obama campaigning against NAFTA, saying he would reopen its terms. In a sign of the gamesmanship, rather than leadership, on the issue, he then reportedly dispatched a campaign adviser to tell the Canadian government that his comments were for domestic political consumption and not to worry.

Contrast that with the principled stand John McCain took in support of free trade last year.

Congressional Democrats, led by Nancy Pelosi, lived right down to the level set by their party's standard bearer by refusing to hold the votes that trade legislation requires on free trade pacts with Columbia, South Korea, and Panama.

Now the "stimulus" bill moving through Congress has buy-American provisions that mandate purchases from American suppliers.

Sounds good? Well, it will raise the cost to the government of the "stimulus" bill, and put Americans out of jobs in other sectors as other countries retaliate - since such provisions violate international trade agreements we have signed.

This is the new American approach to working with the rest of the world?

I guess those sound bites refer to policies that weaken America's posture against the thugs of the world. But when it comes to doing the bidding of union leaders, we can throw international relations aside.

But more importantly, we invite a downward spiral of international trade as other countries retaliate against our exports - which actions are gathering steam.

The echoes of the Smoot-Hawley tariff of 1930 can be heard: one of the worst pieces of legislation in American history as it destroyed our exports when other nations retaliated for its trade limiting provisions.

This is where Barack Obama needs to demonstrate presidential leadership, rising above the wishes of an important constituency (unions). He should insist that the buy-American provisions of the "stimulus" bill be removed (he has called for its watering down) but also explain why free trade is important to America, now more than ever, and lobby Congress both to ratify the pending free trade pacts and to grant the his administration fast-track negotiating authority for new free trade agreements.

Free trade will help us get out of this recession. Trade restrictions will make the economic downturn worse.

1 comment:

  1. This is one of the scariest of BO's ideas thus far. To ignorantly incite a trade war and then just say ooops? Demonstrates his clear lack of experience and knowledge of foreign affairs.

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