On Trade, "Change" Slogan Turns out to Mean, "March Backward
Democrats are worrying about the four primaries today, especially Ohio’s and Texas’. Nationwide, meanwhile, both remaining Democratic presidential campaigns are looking wobbly on foreign policy.
Recall last week’s debate from Ohio. Hillary Clinton denounced the Russian government, but then couldn’t remember the name of the country’s prospective new president, Dimitri Medvedev. Barack Obama sounded confused when describing how, if elected, he’ll take troops out of Iraq for good, unless there is trouble with Al Qaeda in Iraq (but, my, who could imagine such a possibility?), in which case troops might be sent back. He repeatedly called Pakistan “Pockistan”. He is trying to sound smart, but sounds affected instead. Does he pronounce France “Frahnce”?
Mere errors of style, perhaps, but if George W. Bush made them, imagine the finger pointing.
Of more serious concern are errors of substance. On the foreign policy issue that the Democrats have discussed most thoroughly of late--the North American Trade Agreement (NAFTA)--the vague mantra of “Change” turns out to include a very specific threat to abrogate an international treaty unless our trade partners make new concessions.
When it comes to overseas dictators, Sen. Obama, in particular, says that he would meet with America’s foes without preconditions. But when it comes to our friendly neighbors, Canada and Mexico, Sen. Obama (and Sen. Clinton, for that matter)—without any meetings, and while still candidates—are threatening to break a vital diplomatic agreement unilaterally. Even though they obviously would like to stay out of our political campaigns, officials in Canada, our number one trade partner, and in Mexico, our second largest trade partner, have been forced to protest.
Since the debate it turns out that both Obama and the Canadians were embarrassed about a call reportedly made by an official Obama campaign adviser to tell the Canadian government not to take the candidates’ NAFTA bashing too seriously.
Forget the question about what the adviser really said. Let the public record speak. And on the record both the Canadians and the Mexicans felt after the well-publicized Ohio debate that they had to remonstrate, pointing out that the U.S has benefited greatly from NAFTA.
Passed by the Clinton Administration in 1994, NAFTA has been an engine of healthy economic development throughout the continent. It helped spur an almost unprecedented boom in Canada, permitting a 38 percent increase in imports from the U.S. in the treaty’s first ten years.
Mexico has been able to stabilize its economy and reduce political volatility, which helps our country, too. Were it not for economic growth south of the border in recent years our problem of illegal immigration would have been even worse. Does anyone think the problem would get better if we dumped NAFTA?
Politically speaking, if trashing our trade agreement with Mexico and, implicitly, the treaties we have been negotiating with the rest of Latin America, is the Democrats’ way to court Hispanic votes in this country, it is a strange one. You can bet that Sen. McCain will continue to make clear how damaging and disrespectful this approach is.
Once Americans of all ethnic backgrounds wake up and realize what ditching NAFTA would do to trade-dependent regions of the United States (and that’s most of the country now), it is hard to think that the checks that have been flowing into Democratic campaigns from big business this season, especially in high tech, shipping and agriculture, are going to continue. Workers in companies that in the past 15 years have expanded hiring thanks to exports also are going to wonder if the slogan “Change” could lead in the wrong direction.
Indeed, one is waiting for the trade alliances that were so active in the early 1990s to reassemble to fight this new protectionism.
Or will it turn out that the threats against America’s trade agreements are just campaign rhetoric, as many observers believe? Once they slew the Republican elephant and were back in the White House, the Democrats surely would know better than to slay the golden goose of foreign trade, too. Surely they know that while some jobs were lost under NAFTA, America has gained far more jobs, improved our competitiveness and helped restrain inflation.
If so, the "Change" slogan is simply cynical. And that is another issue.

