Obama signals major shift in US trade policy

[OhioChick]

Source: AFP Business News

Sunday December 21, 2008, 11:07 pm

CHICAGO (AFP) - President-elect Barack Obama has signaled a major shift in US trade policy with a new emphasis on enforceable environmental and labor standards to prevent a "race to the bottom."

But while these progressive policies may satisfy some critics, they could further complicate stalled WTO negotiations and serve as an excuse for greater protectionism as the United States slips deeper into its worst financial crisis since the Great Depression.

"The incoming president will face more political pressure for protectionism than any other US chief executive since 1930," said outgoing US Under Secretary of Commerce Christopher Padilla.

"How president-elect Obama responds to this pressure will define the course of the global economy -- and America's economic identity -- for a generation," he said.

Obama's free trade credentials remain questioned ahead of his White House entry on January 20 despite having tapped free trade advocates Bill Richardson for commerce secretary and Ron Kirk as US trade representative.



Read more: http://au.biz.yahoo.com/081221/33/23f51.html

[theophilus]

1. Well, we need a new direction. Do away with the WTO and other

"World Governing Bodies". The WTO is not a good thing, imo. I like the U.N., in theory, and I hope it will be done right in the coming years.

[StudsT]

2. good to hear -> enforceable environmental and labor standards to prevent a "race to the bottom."

This is the kinda of change I voted for :bounce:

StudsT

[MH1]

3. Yes. I hope he can make it happen! nt

[tabatha]

4. Where did you get that poster?

It is awesome.

Thanks.

[StudsT]

8. ObeyGiant.com

http://obeygiant.com

:hi:

StudsT

[MannyGoldstein]

5. Nice Start, But We Need Serious Tariffs

Even if China does adhere to environmental and labor standards, their workers still earn $2 a day. There is no way on God's green Earth that Americans can compete with $2-a-day workers. Until salaries normalize, we need tariffs to keep things on a reasonable footing, like the Europeans do.

[OhioChick]

7. You nailed it. n/t

[lonestarnot]

10. And safety issues! Damn lead in paint, shipping containers that go without inspection just to

mention two. Besides which it will create more jobs!

[babylonsister]

14. Well...

some Europeans. I just read this and it's appalling...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4698824

[Muttocracy]

20. Yes!

I've never understood how anyone thought that could work given the difference in cost of living. Even beyond differences in standards of living and work standards, workers in developing countries are not paying hundreds of dollars a month in rent, hundreds of dollars a month in food. There's no way workers here can compete as though it's a level playing field.

[pampango]

21. The tariffs you suggest would have to be imposed on the products of all poor countries,

not just China. Workers make less in Africa, much of Latin America and most of Asia than they do in China, so you'll need tariffs on all of those countries. At the same time, it would be consistent to keep out immigrant workers from these poor countries, since I suspect we can't compete against them either.

So if we put up tariff walls to keep out the products of poor people and border walls to keep out poor immigrant workers, the US will be a much better place?

If everyone around me makes a million dollars a year, I have a pretty good chance of getting a good raise, since my boss can't easily replace me. If, on the other hand, everyone makes a hundred dollars a year, I'm going to have a hard time getting a raise or even keeping my job. I could try get a law passed that protected my job and wages from the $100/year guys and turn to the police, army, and ICE agents to protect me from them.

Pushing labor and environmental standards in existing and future trade agreements is a good way to promote a long term solution to global poverty, so that we are not afraid of the world's poor people and products forever.

[MannyGoldstein]

25. Yes.

Destroying our middle class with a race to the bottom is not good for anyone. We could perhaps make exceptions for the poorest countries. But we have to stop the race to the bottom.

[AndyTiedye]

27. What Industry Do We Have Left to Protect?

Raising tariffs will obviously raise the prices of practically everything, since practically everything is imported.
So prices go up 25%, 50%, 100% overnight, to try to induce us to "buy American".

American what? There isn't any American clothing to be had. There are no American-made consumer electronics.
Are there any American-made appliances anymore?

There are still American cars, but who is going to have money for a new car with prices going up so much so fast?

There would need to be some compensatory stimulus, that actually gets into consumers' pockets, to make up for
the money the tariffs would take out of the economy.

[RUMMYisFROSTED]

31. It would reinvigorate mfg. in this country, imo.

[FreakinDJ]

6. WTF "Stalled WTO negotiations"

China and India pulled the biggest scam of the century and these fuck wads are trying to claim there is still hope the USA will get some thing out of those negotiations.

WAKE UP America - you have been had

China and India have enjoyed 2% tariffs from the USA while charging 20-40% tariffs on American made good entering their own country. They stalled these negotiations just long enough to bankrupt the majority of this country, shut down our manufacturing sector, and lure our High Tech Industries with plentiful cash incentives to move operations over to China and India.

Lets face it - we have nothing left to offer them

[MichiganVote]

9. Not to mention what they've done to our health care records. Globalism is a bust.

[HillbillyBob]

11. Adio m'fers to IMF and WTO

and cronies responsible for making corpses be all end alls
screwing little countries over for their income that could actually help their citizens if they were not being extorted and blackmailed.

[Odin2005]

12. This is exactly what we need. Fair Trade, not Free Trade.

[depakid]

15. Agreed- but what we definitely don't need is a set of trade wars

[Odin2005]

23. I agree, actually. I have no problem with free trade between economic equals...

...like say Japan and the EU. the problem is trade with developing countries, whose cheep labor and poor regulation gives them an unfair advantage.

[Warpy]

13. Why is protectionism such a dirty word?

What it protects is JOBS in the US!

The dogma of free trade has been a dismal failure for everyone but the rich and corporate in the US. It has been disastrous for the country, which now lacks so many key industries we can't count on surviving the next big war, let alone being on the winning side.

This country has become a shell of what it once was. Continuing the ruinous dogma of free trade will ensure that shell's collapse.

[Azlady]

17. I so agree!

It is time for us to rebuild America that has been stripped of so much of what she once stood for. It is time to stop free trade. Protectionism is a good word in my book, protect our jobs and our country!

[Raksha]

24. You are so right!

I've never understood why protectionism was a dirty word. One thing is for damn sure, though--it isn't a dirty word any more to a large number of Americans.

[OnionPatch]

16. Hurrah for "protectionism" !!!

I see nothing wrong with protecting American jobs, for crying out loud. What is worth protecting more than our livelihoods? :shrug:

[antimatter98]

18. The question is, will Americans end up serfs delivering ice or have dignity with real jobs?

I think anyone can see now what has happened post Reagan:

The middle class, the working class is on the way to extinction,
and replacing the jobs associated with these individuals are
very low level, low paying, no benefits jobs, part time, etc.

Not everyone can be a doctor, lawyer, tenured Princeton professor, or CEO,
or a member of Congress, where the pay is great, benefits are too, and the
retirement plans are top notch.

So, without killing off the American population, what choices are
there: to let the country follow the Republican pathway and devolve
to the point where people are living 10 to a small apartment, their
kids not in school, with no hope for a future?

We're at a major crossroads now, I think everyone sees it except
the upper 1 percent of the population who have all the money.

I'm tired of the lack of dignity presently derived from working, and
feel that unless Americans take action, it will get even worse in the
future.

[mikehiggins]

19. Well, like FDR, BHO may well save "capitalism" for the time

being, though you really have to wonder if that is worth it.

An economic system seemingly deliberately designed to bring out the worst in the best of people might not be such a good idea after all.

I think Justice Sauter said something like that, once upon a time.

[Idealism]

22. WTO= Arm of the GOP

[corpseratemedia]

30. a meme that is right on target!!

The GOP is just an arm of the WTO (or vice-versa). The GOP/WTO are all about obliterating the American work force!

[DUlover2909]

26. We should say that terrorists have stolen one of our Boomers.

One of our fleet of Trident submarines has been hijacked by eco-terrorists and they are demanding that all countries behave themselves and act nice to the environment, OR ELSE! The US Navy can't find it and their weapons can reach anywhere in the world. I'm sure 24 missiles with 8 warheads each worth 3.8 megatons would be a great deterent. One sub with global reach and 730 megatons of deliverability would be enough to destroy the entire world.:o

[Waiting For Everyman]

28. A "major shift"? Now THAT brightens my day.

Thanks, OhioChick! :)

I get the feeling the non-rich of the entire world are getting sick of this shit. Enough with the global games a'ready.

[Life Long Dem]

29. It's not an excuse if you define protectionism.

Is protecting America's jobs protectionism? Because I'm sure people losing houses across the country will have a different story to tell.