Trade hasn’t been a subject that has received much ink during the Obama Administration. They haven’t sought to overhaul NAFTA or CAFTA, nor have they signed any new major trade deals. And in some cases, they have raised tariffs on certain imports, bolstering domestic manufacturing.
The White House says they’d like to double exports as a means of creating jobs and renewing economic growth. And they’re pitching the South Korea free trade agreement as a step along that path:
For three years, since it was negotiated by the Bush administration, the free-trade agreement has languished in Congress. Now trade officials from both countries are trying to resolve the problems that have kept it bottled up, including a dispute over U.S. access to the South Korean auto market and restrictions on U.S. beef imposed after the mad cow scare several years ago.
The agreement would eventually eliminate tariffs between the two countries. Because those levies are typically higher on the South Korean side, administration officials estimate the deal could mean more than $10 billion annually in increased U.S. exports to Seoul and tens of thousands of new U.S. jobs. South Koreans say they would benefit from lower prices — some tariffs on food imports from the U.S. are as high as 40 percent — and a more efficient flow of investment in and out of their country.
U.S. opponents of the agreement argue it doesn’t do enough to benefit American industry, even as it gives South Korean businesses greater rights in the United States.
The South Korean ambassador to the US has been touring the country lobbying for the free trade deal.
Free trade agreements were the subject of contentious debate during the Clinton and Bush years, and with the economy at a nadir, opponents of neoliberalism and globalization believe they’ve won the argument. The South Korea pact, which Obama and South Korean President Lee Myung-bak plan to revise and amend after the midterm elections, would restart that debate. South Korea’s economy is larger than any of the countries with which the Bush Administration signed free trade agreements, so it would be a major return to those policies.
In this case, traditional opponents like labor unions and environmentalists, who are both wary of the terms of the agreement and the potential loss of manufacturing jobs to outsourcing, are joined by some automakers like Ford and other corporations, who think the pact doesn’t force the doors open on the South Korean market to a great enough degree. And, times have changed from the 1990s, as more skeptics of free trade have entered the Democratic caucus:
Last month, more than 100 Democratic members of Congress signed a letter asking to meet Obama and discuss the agreement. They characterized it as “job killing” and “another NAFTA-style FTA that we simply cannot support in its current form.”
“There are two ways to go, and they have to decide,” said Lori Wallach, executive director of the global trade division at Public Citizen, which is critical of several aspects of the Korea agreement. “Push forward Bush’s text with minimal fixes — that would have enormous policy and political fallout — or they start to translate that old policy into the new model promised in the campaign.”
If the gains by Republicans are large enough in the midterm elections, this could become one of the first big fights of the next Congress.





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that’s where we need to go but with an agenda of increasing middle class throughout the planet;
when a country allows for slave and child labor rates and does not allow for retirement, added wages for longer then a 40 hour week, healthy food on the table for a family and the ability to educate their young through college, as well as other items, THEN there needs to be a tariff that makes up more then the difference in production costs
that will make it more economically feasable for foreign manufacturers to benefit their own labor force then go for cheap wages.
this is actually the real reason there was a boston tea party in the first place, it was a demonstration against the king’s depraved action of removing tariff on foreign product
My understanding is that this agreement is just as bad as all the other so called “free trade” agreements. The peasant farmers union is strongly against this. It would do what we did to Mexico i.e. flood Korea with cheap food. That is what I recall from talking to the peasant farmers who came here to Montana to protest Baucus and his push for this agreement back in 2005. I’ve got there manifesto somewhere. They were really cool looking. Very guerilla and fiercely smart.
Very bad for Korean labor, but good for Baucus and American beef.
I really haven’t read the basics of the agreement, but since obamarahma is pushing it, I have to look at the record: health “reform,” Gulf disaster aid to bp, closing Gitmo, reversing egregiously bad moves of w, government transparency, enriching the banksters, cat food commission, etc. Do I think this would be a step toward betterment of the country? Let me go back and review my list.
i’ll be glad in a dozen years when oil reserves crash enough that it becomes unprofitable and globalization dies
QUINQUIREME of Nineveh from distant Ophir,
Rowing home to haven in sunny Palestine,
With a cargo of ivory,
And apes and peacocks,
Sandalwood, cedarwood, and sweet white wine.
Stately Spanish galleon coming from the Isthmus,
Dipping through the Tropics by the palm-green shores,
With a cargo of diamonds,
Emeralds, amythysts,
Topazes, and cinnamon, and gold moidores.
Dirty British coaster with a salt-caked smoke stack,
Butting through the Channel in the mad March days,
With a cargo of Tyne coal,
Road-rails, pig-lead,
Firewood, iron-ware, and cheap tin trays.
John Masefield
We know about all the problems with “free trade,” NAFTA and CAFTA. Why Korea and why now?
Aside– I didn’t know this: “South Korea leads the world in household broadband penetration. In Seoul, plans are under way to provide all residents with a wired network fast enough to download a full-length feature film in 12 seconds — that’s about 200 times speedier than the average Internet connection in the United States.” (the bold is my emphasis)
“If the gains by Republicans are large enough in the midterm elections, this could become one of the first big fights of the next Congress”
These issues should be a part of the dialogue heading into elections! I’m so sick of hearing about all the stupid news repeats. Scare the people in the right direction instead of GOP crap! Besides, what are we going to be exporting besides scrap metal? Meat? Hmmm, it seems that only big Agra farms will get that opportunity. Do we have jobs on those farms?
Emptywheel has a fresh cross-post available: Funny How All Those Peace Negotiations Seem to Fail…
So, after the mid-terms huh? When we will face cuts ( at least) to Social Security, no new jobs and now another free trade agreement. (Mr. Bush? Is that YOU?)
What? we don’t have ENOUGH cheap labor for all The corporations?
Good god. by the time THIS guy gets thru with US we’ll all be living in tin shacks or fighting for water or gasping for air, or all of the above
Our government has been replaced with pod people, I swear
We need more slaves and no unions.
Sweet…exporting more of our Chinese goods to South Korea should help quite a bit.
Another sell-out attack on the middle class by the faux Democrat in Chief!
How is this good for an already decimated job market? Can anyone point to a “free trade” agreement that has actually IMPROVED the standard of living for the middle class? Yes, it’s enriched Wall Street’s top investors. But the rest of us are clinging to the side of the cliff that is our job security by our nails.
Don’t forget that they are trying to open up the Pakistani market, as well.
We really need a new third party in this country that will represent middle class interests!
Yeah, remember when they told us the reason they were de-regulating the internet providers was so they could bring us all super high-speed internet access? Funny how that actually wasn’t written in a contract so we could hold them to it. No surprise half of us are still using horse-drawn modems. All it did was consolidate the market into two giant super crappy high cost companies (can’t have one, that would be a “monopoly”, don’t ya know) that now are trying to ram through tolls on the internet superhighway.
Yes! I recently heard someone (wish I could remember who) on TV say, “The Democrats run on hope, but the Republicans run on fear.” It’s so true! It’s far easier to scare people into action than to inspire them into action.
I’m so sick of the candy-assed Democrats tip-toeing around and refusing to counter Republicans who pepper the electorate with authoritarian, racist, homophobic, xenophobic diatribes. I want them to start spewing their own diatribes out at the public — scare them with the TRUTH about the Republicans.
“Do you want to vote for Sharron Angle, who wants to dismantle Social Security? The 2nd Amendment says people have “the right … to keep and bear Arms.” Did you know that Sharron Angle thinks that if the Republicans aren’t elected November, that people should look to “2nd Amendment remedies?” (ominous music plays)]
Of course, Mr. Peabody Harry Reid, would never run HIS campaign like that. (He doesn’t want to annoy his old comrades, the Republicans.) But certainly the Democrats should be running ads in every district in the nation that scare the sh*t out of people that portray the Republicans LIKE THEY ARE — bat sh*t crazy nut-case extremists!
Try to see the forest for the trees here. If we have a free trade agreement with SC then finally the Chinese will have a little competition for what few jobs are left in this country. That’s capitalism! And we’ll have cheaper Hyundai cars even if nobody can afford them.
I also am deeply suspicious of this.
Would hate to see the AFL-CIO give away the store in return for some crumbs that the UAW wants on behalf of the auto companies.
The heavy lifting is getting the General Agreement on Tariffs of 1948 – GATT – which now the WTO post name change – to agree that promoting free trade includes something other than just getting lower tariffs and removing “non-tariff” barriers – where “non-tariff barriers” include union or worker or environment rules.
The model for the desired trade agreement is Clinton’s NAFTA but this time with the side agreements included in the main agreement – and this time the side agreement issues are not made voluntary – and with the addition to the Clinton version of the side issue resolution even better rules for the environment, union rights, worker safety, and minimum wage – with these better rules also not voluntary and included in the main agreement.
The problem is of course that the WTO would rule such an agreement illegal under WTO rules – so the administration would need to be ready to pull out of the WTO.
But Obama has no core values and is afraid of his shadow – not someone that will go up against the WTO.
How did Obama get to own the “change” meme in 2008?