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Thursday, September 24, 2015

'America’s Collapsing Trade Initiatives'

Robert Kuttner:

America’s Collapsing Trade Initiatives: ...Obama's trade policy is in tatters. The grand design, created by Obama's old friend and former Wall Street deal-maker, trade chief Mike Froman, comes in two parts: a grand bargain with Pacific nations aimed at building a U.S.-led trading bloc to contain the influence of China, and an Atlantic agreement to cement economic relations with the European Union.
Both are on the verge of collapse from their own contradictory goals and incoherent logic.
This past June, the president, using every ounce of his political capital, managed to get Congress to vote him negotiating authority (by the barest of margins) for these deals. Under the so-called fast-track procedure, there is a quick up-or-down vote on a trade agreement that can't be amended.
The assumption was that the administration could deliver a deal backed by major trading partners. But our partners are not playing. ...
The U.S. negotiators, increasingly, are prepared to give away the store, to get a deal. ...
It is a bit premature to write the obituaries for these deals. Never underestimate the power of corporate elites. But one has to ask, what was Obama thinking? The U.S. faces serious economic challenges from an economy that is still stagnant for regular people. And we face complex national security challenges from China. These trade deals address neither challenge, much less the even more daunting economic woes in Europe. ...

In general, I support lowering trade restrictions, but the details of trade agreements are important. Just because a deal is proposed does not necessarily mean it's a good one. I haven't kept up with the details of the current negotiations, but for the most part those that have appear less than impressed.

    Posted by on Thursday, September 24, 2015 at 10:18 AM in Economics, International Trade, Politics | Permalink  Comments (38)


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