A Korean concession today advanced the U.S.-Korea free trade agreement (FTA), which was originally inked under George W. Bush but that stalled under Obama’s guidance. The delay resulted from Obama’s attachment to his labor constituency, and it ran against his promises to increase U.S. exports. When faced with a quandary, Obama opted for inaction, much to the detriment of American industry.
The FTA has been protested especially aggressively by the Ford Motor Co., but protectionism does more to benefit labor leaders than skilled American workers. As Rep. Mike Pence (R-Ind.) pointed out in his address to the Detroit Economic Club:
Despite the president’s stated objective of doubling American exports in the next five years, trade has largely been ignored by Democrats in Congress and the administration in recent years. With a new Republican majority in the House, I am hopeful that the free trade agreements with Panama, Colombia and South Korea can move forward. We need to get those deals done, and done right, but it should not end there. We must promote increased trade at every opportunity around the world. When the world “buys American,” Americans go to work.
Both South Korea and the United States will benefit from the FTA, but it’s worthwhile to keep in mind just who has done the crucial compromising — and who has assumed the leadership to ensure that the FTA came to fruition. The answer is: not Obama. This has bearing for similar agreements with other countries, as Mary Anastasia O’Grady summarized earlier this week.
It is a pity that this agreement has been so long in coming. But it would be even more of a pity if the Obama administration were allowed to tout this as an achievement of its own. Passage of a free-trade agreement with South Korea will have happened largely despite Obama, not because of him.