"Economic Choices-2008"-Free Trade
Wednesday, July 02, 2008PAUL KANGAS: The Treasury secretary has long supported a trade deal with Colombia. Today Senator John McCain was in that nation meeting with President Uribe and highlighting the benefits of the Colombia free-trade agreement. Trade is one of the sharpest differences between presidential contenders John McCain and Barack Obama. As our "Economic Choices" coverage continues, Stephanie Dhue looks at the rising role of trade as a campaign issue.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Presidential candidates usually go where the voters are in an election year -- U.S. voters that is. But John McCain is taking a different path, with trips to Canada, Colombia and Mexico promoting free trade. At a news conference in Cartagena today, McCain acknowledged the issue is politically unpopular now in the U.S.
SEN. JOHN MCCAIN, (R) PRESUMPTIVE PRESIDENTIAL NOMINEE: We who support free trade have to emphasize time after time that we are committed to providing education and retraining to displaced workers in newer and better and more innovative technologies.
DHUE: Senator McCain has supported every major piece of trade legislation since 2001. Senator Barack Obama voted against the Central American free trade agreement in 2005 and is against pending deals with South Korea and Colombia. Obama was highly critical of the North American free trade agreement during the primary campaign. Recently, Obama has made it clear he supports free trade, but not all trade agreements.
SEN. BARACK OBAMA (D) PRESUMPTIVE PRESIDENTIAL NOMINEE: I don't think an agreement that allows South Korea to import hundreds of thousands of cars into the U.S. but continues to restrict U.S. car exports into South Korea to a few thousand is a smart deal.
DHUE: Free trade is a key issue, especially in states like Ohio, Michigan and Pennsylvania, which have large labor union memberships. The nation's largest labor union, the AFL-CIO, supports Obama. Its international economist, Thea Lee, says the country needs a new direction on trade.
THEA LEE, CHIEF INTERNATIONAL ECONOMIST, AFL-CIO: We need to think about trade very differently. We need to think about what kind of policies it would take to incentivize American companies to create good jobs at home on American soil. We haven't done that in the past.
DHUE: Business groups support free trade because it generates exports that they say lead to higher-paying jobs in the U.S. and trade supporters says foot- dragging on these agreements could send business elsewhere. For example, Colombia recently inked an agreement with Canada. Colombia's trade minister, Luis Plata, says that deal gives his country more options.
LUIS PLATA, COLOMBIAN TRADE MINISTER: Canada is very strong in poultry, very strong in pork, very strong in wheat, barley, things that Colombia buys from the U.S., but now can buy from Canada with no tariffs.
DHUE: Free trade agreements have stalled in the Democratically controlled Congress and analysts say any movement on those deals may have to wait until after the next president is elected. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
