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Trading Places

The Washington Post editors make a fine suggestion:

President-elect Barack Obama needs to reassure Americans and U.S. trading partners around the world that free trade will be part of his plan for U.S. economic recovery. If his campaign for the White House had a weakness, it was the mixed signals he sent in this regard. Mr. Obama frequently acknowledged the benefits of trade, but he just as frequently denounced specific agreements, including the North American Free Trade Agreement with Canada and Mexico, which he made an ill-advised pledge to renegotiate. Mr. Obama’s party is, of course, deeply divided between protectionist constituencies such as organized labor and pro-trade technocrats such as those who populate his economic team.

President-elect Obama’s reported first choice for Trade Representative, Xavier Becerra, has dropped out (or didn’t make the final cut). Although this may be a sign that the Obama team can only tolerate one pardon-plagued nominee at a time (the other being Eric Holder, of course), this might also be an indication that Becerra, whose record on free trade is mixed at best, was not ideologically aligned with the President-elect. We will see whether the nominee is more or less pro-trade than Becerra.

Protectionism is never  a good idea. The bipartisan consensus in favor of free trade has frayed during the Bush years, in part because the Democrats have demagogued the issue. But perhaps (like tax increases), the protectionist impulses can be deflected and restrained in light of the looming recession. It really would be Hooverism to pull up the drawbridge of free trade.

The new President will have to show more than just restraint. There are pending free trade agreements with South Korea and Colombia, which the Democrats have rebuffed. This is an issue on which it is not enough to “do no harm.” Rather President Obama will have to push his allies on the Hill to pass measures that open trade and disappoint their most important backer, Big Labor.

The latter isn’t doing so well these days, between the SEIU scandals, which J.G. and I have discussed, and the UAW’s role in playing chicken with the survival of the U.S. auto industry. So they might not be in a strong position to object, especially in the face of the new President’s pleas that these are extraordinary times.

Rahm Emanuel joked that you should never let a serious crisis go to waste. He meant it in the context of helping to facilitate the liberal agenda of regulation, nationalized health care and massive spending. But it might be equally true of free trade. The current economic crisis might be just the moment to revive that bipartisan support of free trade, without which neither we nor our allies can return to prosperity.

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4 Responses to “Trading Places”

  1. Dan Simon says:

    So what are the odds that a bloc of Kadima MKs (led, perhaps, by Mofaz) will peel off and join the coalition?

  2. CPM says:

    Good point #1, many assume that Kadima will remain united. But, if the polls are correct, some might be feel pressured to break away and join the coalition.

  3. Dan says:

    Dippi Livni isn’t going to last long.

    The Left only voted for her to avoid Netanyahu, but that doesn’t mean they’ve reconciled themselves to having her as their permanent leader.

    Livni remembers what the Clinton administration did to Netanyahu during the 90s. Netanyahu was driven from power by Washington, and she’s hopeful that the Obama administration will administer the same punishment once again.

    Netanyahu is too much a man, so Washington is determined to force him to take the bit, and if he proves reluctant, all the more enjoyable then for Washington to ram that bit into his mouth.

    ALL OF OBAMA’S foreign policy team is CONVINCED that the ONLY path to any stability in the Mideast is to force Israel to give up the Golan Heights, the Gaza Strip, the West Bank and probably most of Jerusalem, ————— AND IN ADDITION to that, Israel must be humbled, to assuage the fragile ego of the crazy Arabs.

    That’s the plan. EVEN THE TERRITORIAL CONCESSIONS will not be enough, for Israel must be humbled, humbled unto dust, made to beg forgiveness for her victories, made to beg forgiveness for her strength, made to beg forgiveness for their toughness.

    As for Dopey Dippi Livni, —————- who cares?

    Israel’s electorate has a sharp division between the secular left and a right that is religious, and for those on the right that aren’t that religious, they’re at least somewhat sympathetic to a religious view of the importance of the land of Israel.

    The Left is willing to toss much of the land up on the negotiating table.

    The Right thinks such a thing an abomination, an imbecility, and a folly.

    Why should the government of Israel encompass points of view that are completely antithetical to each other.

    Let Netanyahu form a government. Let him tell the false and fraudulent messiah to grow a pair, be a man, and stop affecting he’s a messiah when he’s painfully provincial, devoid of any real knowledge about history or economics!

    Let Netanyahu unleash on Iran, unleash on Hamas and unleash on the dirtballs in Hezbollah. Let him go after Israel’s enemies like no Israeli leader has ever even thought of doing. Let him lure Syria’s military into open battle, where it can be utterly destroyed on the Damascan plain.

    Let him humble Arab pride lower than the dung that drops from the damn camels they’re so fricken fond of!

  4. Bob Miller says:

    How would anyone know what Livni really believes? How would Livni know?