In addition to education, another area where you can see the President and the Republicans in Congress agreeing is on the issue of trade. One of the first international figures Obama talked to on Election Day was the President of South Korea, and he assured him that the US was working on passing a free trade agreement between the two countries.
Obama and a few Republicans may agree, but I’d be hard-pressed to find any Democrats to join them, including the Blue Dogs. For all his obvious faults, Heath Shuler is a fair trader. So was the majority of the 111th House of Representatives, as evidenced by the vote on the Chinese currency bill, which had the support of 99 Republicans, most of whom remain in the House. A new report from Public Citizen shows that 205 Democratic and Republican candidates used fair trade and anti-outsourcing messaging in their election campaigns. Only 37 candidates campaigned as pro-NAFTA free traders, and half of them lost.
“That Democrats and GOP alike ran against the trade policy status quo highlights the intensity of public ire about our job exporting trade policy – a phenomenon also seen in national polls. It also reveals the trouble that the White House and GOP leaders will face if they try to pass the leftover Bush trade pacts with Korea, Colombia and Panama, to say nothing of the threat such a move would cause to President Obama’s reelection in 2012,” said Lori Wallach, director of Public Citizen’s Global Trade Watch. “Freshmen GOP congressmen being asked by their leadership to support trade agreements most Americans consider job-killers undoubtedly will have the foreseeable 2012 Democratic attack ads in mind.”
The whole report is pretty interesting. And there’s plenty of data to suggest that more bad trade deals will kill Democrats, specifically in the new battlegrounds of the Midwest. Labor had more trouble that usual in this region. While the WSJ fudges the numbers a bit (labor doesn’t expect 100% Dem support from the rank and file, and the exit polls surveyed union households and not union members this time, skewing the numbers), there’s no question that bad economic conditions and a feeling of abandonment hurt support for the Dems among union households, and a bunch of corporate-written trade deals would only make that worse.
As for the newcomers, the Tea Party candidates, a good deal of incoming freshman Republicans from the class of ’10 ran on “reforming trade policies.” They’re going to have a real choice to make.
Tea Party members absolutely despise “free trade” agreements that have forced companies to close factories and ship jobs out of the country. They want to see “Made In America” in stores again. But the D.C. insiders, backed by big money from the big, monopolist, multinational corporations, insist on even more of these agreements. Which way will the Tea Party officeholders go?
Next up: the US-Korea Free Trade Agreement. The D.C. insiders want this one bad. Tea Party supporters do not want any more of these job-sucking one-sided agreements. Who will win? Negotiated by Bush, this is another one-sided agreement, letting Korea export like crazy to the U.S., but not addressing non-tariff barriers that Korea places on bringing U.S.-made goods into their country. (Korea places regulatory and tax barriers to limit imports along with tariff barriers that the trade agreement addresses. So in effect we would be removing our tariff barriers on Korean imports, while they keep their other barriers to our exports.)
I suspect the officeholders will go where their minders tell them, but they won’t necessarily have the back-up from big business, at least not manufacturing. Ford, the only car company that didn’t require a rescue, ran a blistering attack today on the Korea FTA, along with this copy:
We believe in free trade, and this isn’t it. In fact, Ford has supported every trade agreement approved by Congress since 1965 – except this one.
If the US-Korea Free Trade Agreement isn’t fixed, it would allow Korea to remain one of the most closed automotive markets in the world. Today, less than 5 percent of all cars sold in Korea are made outside of that country. The simple fact is that Korea shuts out most auto imports, including vehicles from the US, Japan and Germany. American-made cars can compete and win globally, but we can’t afford a future with more closed markets to American exports. That’s why Ford strongly supports efforts to fix the Korea Agreement. Americans should expect nothing less.
That’s a pretty stark attack on the FTA by Ford, and they’ve supplemented it with all kinds of other information. More here.
The President may think the numbers are on his side to “move forward” with a neoliberal trade agenda, but I’m not so sure.





55 Comments


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yeah he sure was chastened by the election wasn’t he?
Maybe he really does want out.
Short Obama Negotiation tactic: “Where do I sign?”
I predict Obama’s going to do a few tweaks and remarket the US-Korean FTA as “fair trade.” Still any FTA’s are going to be a hard sell unless the economy improves significantly.
I don’t know of a single Dem who came to this party for more NAFTA. If Obama doesn’t know that or if he thinks he has to join the Republican party then he should ask his Dem coalition AND the new TEA partiers if there’s a large coalition favoring Fair Trade. If we can’t open markets for out exports, then there won’t be so much reason to Make it in America and employ Americans with good-paying jobs. Fair Trade is the only position a Dem can rightfully take.
obama is learning his lessons from the mid-terms all right. This election was partly about the people expressing their discontent that there has not been enough free trade agreements lately.
More free trade! More free trade!
Z
The White House is in the control of the corporations. Nowhere to go but down. Obama is a one time deal. 2012 should have a primary challenger from the from the Democrats.
tommy friedmann is so ecstatic that he is fondling his pulitzers right now.
Z
Let us forget about OBAMA, he is off in LA LA LAND!
how many dems up for election in 2012 are going to vote for the ASIA NAFTA program in the middle of a depression?
Obama was the only person in the USA that thought Americans voted for more americans jobs to be sent off shore (the tea party hates free trade ,real democrats hate free trade, and all the democrats and republicans that are un-employed hate free trade)
Hoover is laughing his head off, saying I want be the worse USA president to much longer, Obama is after my title
I see that Kia, LG, Samsung, ad nauseum… are getting their money’s worth…! 8-(
Now that the inconvenience of a democratic-dominated congress has finally been dispensed with, it’s full speed ahead for the head pr man for the establishment: free trade, french kissing corporate ceos, serving free lunches to the titans on wall street, and social security cuts.
Go get ‘em, O!
Z
With Quantitative Easing 2 in the works, isn’t that even MORE of an invitation for cash to go to S. Korea?
It’s just begging for more jobs to go away. Sweet. /gah
” The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-
* Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
* 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for
next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
* Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
* External Commercial Borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized
banking channels.
* Exemption from Central Sales Tax.
* Exemption from Service Tax.
* Single window clearance for Central and State level approvals.
* Exemption from State sales tax and other levies as extended by the respective State Governments.
The major incentives and facilities available to SEZ developers include:-
* Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
* Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under
Section 80-IAB of the Income Tax Act.
* Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
* Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
* Exemption from Central Sales Tax (CST).
* Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).”
http://en.wikipedia.org/wiki/Special_Economic_Zone
Short Obama statement, “I surrender, don’t hurt me.”
Obama is a walking and talking Goldman Sachs. Heckuva job Summers!
The “meedja” liked to say Obama was a political savant. In fact he is the political “retard.” Able to campaign, unable to wield power. It’s really quite pathetic.
There’ll be some neat American Empire photo-ops of the Commander-in-Chief with US troops on freedom’s front line. US Forces Korea, including the Eighth US Army, has 28,500 personnel. Camp Humphreys, Pyeongtaek, is now being expanded to accommodate military families. This requires new schools, recreation facilities and high-rise apartment buildings.
and we thought the GWB administration was a nightmare.
Like Margaret Cho. Her favorite pickup line was: “Stick it in.”
Just what does “to completion” mean in this case?
I believe ‘Obama’ is Kikuyu for ‘Sellout’, ‘Corporate Shill’, ‘Pathetic waste of space’, ‘Feudal sycophant’, ‘Pointless’, ‘Love the speech, but it doesn’t match up to your actions’, ‘What the fuck?’, ‘You can’t be serious?’, ‘Right, that makes no sense’, ‘You’ve got to be kidding me’.
Great, great opening line. Maybe we could trade all our bad teachers to Korea for Hyundais?
I’m nostalgic for Bush giving nukes to India for mangoes.
Srsly, Bush was less evil and stupid than what we’ve got now. Still trying to wrap my head around that fact, but it’s the truth.
hahahahaha – had forgotten that one
I think WH staffers are posting over at HP. You’d think Obama was the second coming.
The word is also out today Obama is capitulating on tax cuts for the wealthy. There is no way this guy can be our nominee in 2012. I get sick to my stomach just thinking about him. What a pussy.
The Republic of Korea-United States Free Trade Agreement (also known as KORUS FTA) is a trade agreement between the United States and the Republic of Korea. Negotiations were announced on February 2, 2006 and were concluded on April 1, 2007. The completion of the agreement was announced on April 2, 2007 and the treaty was signed on June 30, 2007.
South Korean Auto Market Not Open Enough to U.S. Imports
by Dustin Ensinger on January 18, 2010
—Mod Note: Please help FDL remain within Fair Use guideines when quoting, about 200 words. Thanks.—
US vows to complete S.Korea trade deal
The United States vowed an all-out effort to finalize a free trade agreement with South Korea as the two nations meet Tuesday, despite criticism of President Barack Obama within his own ranks.
Obama opposed the deal as a candidate. Organized labor, a core Democratic constituency, fears that the deal could strike a fresh blow to a recovering US auto industry by giving an edge to South Korean imports.
The Obama administration has pressed South Korea to give greater access to the US auto industry, which has a minuscule slice of the market in Asia’s fourth largest economy.
http://www.alternet.org/rss/breaking_news/308113/us_vows_to_complete__s.korea_trade_deal/
and truth to the rumor that as a gesture to bipartisanship Obama has agreed to do an interview with Rush Limbaugh?
Labor better wake up and smell the coffee and dump Obama ASAP. Time to begin putting out feelers for a primary challenge.
Says it all right there…! 8-(
All the above economics reads like what I was taught and how Krugman speaks. But the Free Trade policy seems unable to incorporate Paul Samuelson’s thinking of 2004/5 that suggested that not all free trade was good for both countries – or even good for one country.
Meanwhile is it true the new Gov of Ohio (meaning Kasich’s Ohio education plan) wants solve his budget problem/union problem by “privatizing” all school funding – have cities sell off school property and then hiring private companies to take tax dollars and teach our kids with non-union help (anything more than a funding change is a bit un-constitutional under the Ohio State constitution – and funding changes are struck down for not meeting constitutional muster), but will settle for running the school system more like a corporation? Things are getting interesting.
Exactly. And most of the trade we do — dollar-wise — is not necessarily good for us.
Michele Bachmann says: Two hundred million dollars a day and a tenth of the US Navy to accommodate Barack Obama’s trip to Asia!
Or, you know, not.
It’s doubtful that any Democrat can beat Obama with his rock solid base.
“Interview” is a polite term for it. These kids today with their slang…
The Hill:
Oh, I get it. Sarcasm.
Watching Fringe tonight. I almost start believing it could be reality when I look at Democratic performance during the last ten years.
why sure he pines for Free Trade deals… he won’t learn any lesson from the elections. He continues his “New Democrat” ways… free trade, market solutions, pro-military, pro-corporation… what more info do we need to get it?
By 2012, we progressives had better have a very electable alternative.
Jerry Brown
Could be.
A few financial data points along the way …
- from ‘The “Frontier” Markets are Beckoning,’ by madhedgefundtrader, Aug. 23, 2010
- from “South Korea’s Pensions to Boost Equity Stake,” by Leo Kolivakis, Sept. 15, 2010
- from “At the IMF, Japan, Korea, Brazil, Thailand, Rebel Against Globalized Hot Money Speculation Stoked by Bernanke’s QE2; Capital Controls for Self-Defense Gain Ground,” by geopol, Oct. 14, 2010
Of note is S. Korea’s Samsung (in the following excerpts, my emphasis is bolded):
* annual revenue of US $173.4 billion in 2008.[2]
* Samsung Group accounts for more than 20% of South Korea’s total exports,[15] and in many domestic industries, Samsung Group is the sole monopoly dominating a single market, its revenue as large as some countries’ total GDP. In 2006, Samsung Group would have been the 35th largest economy in the world if ranked, larger than that of Argentina.[16]
Speaking as an economist, and I think a pretty good one and not one of those leftist-pinko anti-everything types, the whole free trade thing is vastly overblown. It’s like a mantra with people whom I know and actually respect like Delong. But it’s basically the only thing we know. You look for your lost keys under the lamplight, not in the shadows where you probably dropped them. The gains from trade attributable to the actually quite modest reductions in trade restrictions are incredibly modest. Given the reduction in transport and communications cost over the last 35 years, we would have had almost the same outcome if none of these agreements would have been carried out. And we would have had a chance to protect our workers, at least a bit.
Obama’s a smart guy. But he’s a lawyer, not an economist, and even among economists, the proportion who can think straight about stuff is a lot smaller than you might think. Free Trade doesn’t do the harm that alot of people on this blog think; but it doesn’t do the good that alot of people who support it think either.
The President is wasting his time over there. He should be here figuring out how to save his presidency.
I don’t think they can come up with an electable alternative, but at least a primary run will allow progressive dems to disown him, so he doesn’t stain them. I’m holding out more hope for an independent candidate like Jesse Ventura.
Are those $5.1 billion worth of Korean automobiles sitting in parking lots in Oklahoma or have American dealers sold them to American drivers? Isn’t the S.Korean government being kind of pissy by not allowing their folks to see Korea in a Festiva? Should the US get even with Korea by punishing its own citizens with fewer choices in automobiles?
Supreme irony. I just realized we are in agreement with the Tea Party. Obama is trying to destroy America.
the reduction in transport and communications cost over the last 35 years,”
The above just says that trade would have grown, moving jobs abroad, without any tarriff reductions/trade barrier removal, because basic cost to make the goods or services dropped so much relative to the US and were not offset by the excess cost for transport and communications cost.
I suggest trade barriers can be effective, and as Paul has shown, used without harming the protected country and indeed resulting in the protected country being better off.
I however agree that education changes in other countries and openings for greed to motivate indivuals into building companies have produced competition where it did not exist 35 years ago – but I suggest that is a “so what” and not on point. Branding must be established and price points can hold at levels that build a middle class that is not harmed because of the pass through of reasonable wages.
We allow foriegn branding into the US Market, low price points that kill local manufacturing, and then put CEO salaries up from the 1970′s 40 times base wage to the current 600 times base wage – further killing purchasing power. I agree these trade agreements are only part of the solution, but they are still part of the solution – and Obama is not up to speed. Clinton had an excuse that the Paul Samuelson research had not been done at the time of NAFTA – what the hell is Obama’s excuse?
Democrat leaders just can’t get enough of destroying American workers.
As Ross Perot warned Al Gore back in 1993, trade isn’t an athletic contest. The litmus test is: does the trade agreement increase the standard of living of workers in both nations?
How have all those free trade agreements of the 1990′s worked out? We have declining living standards at home and sweatshops abroad. So far the results have been fantastic for CEO’s and horrid for workers.
The only nation that seems to be doing things right is China, and they don’t practice free trade.
I’d also point out that America wasn’t built on free trade. America was built on high tariffs and high wages. Tariffs allowed domestic industry to grow and at the same time created a situation where workers could agitate for wage increases without the fear of thier jobs being offshored.
I did not know of this comment till now but is one with deep insight and is absolutely correct in my opinion. I guess Mr. Perot would have made more progressive president than all of the ones we had from that time till now without all the lies, bait-and switch stuff, and scandals to go with it.
BTW to complete the thought Market Economy is all about Producer and Consumer coming after the deal feeling that had the best deal.
Logic here in Mr. Perots comment too is the same. Producers of One country should feel better i.e. Standard of Living increases with production sale, Consumers of other country should feel better i.e. Standard of living increases with the purchase of product.
But that is not what is happening. Both sides are miserable. Worse living conditions with wages being outstripped by inflation in Producer country for workers and shrinking wages & loss of jobs in consumer country. Totally lose-lose scenario.
Clinton had no excuse.He and Gore played a crucial role in advancing the free trade agenda,which was well-understood when Carter was pushing it.From Austria to University of Chicago.the neoliberal economic model of corporate globalization had been around many years as formal knowledge,with nobody hiding its ambitions of turning nations into markets,turning democracies into corporate governance,i.e.,fascism.and turning economic prosperity into debt-induced peonage.Clinton gave the illusion of balanced budgets by using S.S. surpluses while planting the deregulatory seeds for the present financial crisis.Obama and Clinton are both DLC republicans beholden to their corporate pimps who advance monopolism to crush entrepreneurialism,and free trade to arbitrage our standard of living against their slave-wage imports without paying tariffs.Harmonizing was the term used to leverage reductions in wages,taxation and regulation.
Did NAFDA increase the standard of liveing of workers in the USA.You can thank Bill Clinton and Newt Gingrich.We need new leadership in the USA.These HI IQ and low intelligence the so called best and the brightest took and shreeded the foundation [jobs where we make what we use] of America.The Tec. jobs of the 90′s followed.Is obama now trying to give more jobs away?
What FREE TRADE is really about
The ELITES really hate the idea of UNIONS, STRONG INTELLIGENT MIDDLE CLASS, and FDR DEMOCRATS, so to under mine all of these groups, they are seeking to make all these groups poor by sending good american jobs off shore.
Ross invented outsourcing.
That’s from Perot’s 1993 debate with Al Gore over NAFTA. This (youtube).
Al Gore was giving the neoliberal party line that NAFTA would let us sell more to Mexico and thus create jobs here in America.
Perot pointed out that we already had some factories in Mexico and the results so far were that slums full of cardboard houses appeared where ever they built a factory.