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NAFTA Renegotiation Must Wait, Obama Says

by: Michael D. Shear  |  The Washington Post

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President Barack Obama met with Canadian Prime Minister Stephen Harper on Thursday. (Photo: Tom Hanson / AP)

    President warns against protectionism.

    Ottawa - President Obama warned on Thursday against a "strong impulse" toward protectionism while the world suffers a global economic recession and said his election-year promise to renegotiate the North American Free Trade Agreement on behalf of unions and environmentalists will have to wait.

    Obama made the comments as he stood with Canadian Prime Minister Stephen Harper during his first trip abroad as president. The two pledged cooperation on efforts to stimulate the economy, fight terrorism in Afghanistan and develop clean energy technology.

    In a joint news conference, Obama said he wants to find a way to keep his campaign pledge to toughen labor and environmental standards - and told Harper so - but stressed that nothing should disrupt the free flow of trade between neighbors.

    "Now is a time where we've got to be very careful about any signals of protectionism," the president said. "Because, as the economy of the world contracts, I think there's going to be a strong impulse on the part of constituencies in all countries to see if we - they can engage in beggar-thy-neighbor policies."

    The president's message served as a reminder of last year's private assessment by Canadian officials that then-candidate Obama's frequent criticism of NAFTA was nothing more than campaign speeches aimed at chasing support among Rust Belt union workers.

    "Much of the rhetoric that may be perceived to be protectionist is more reflective of political maneuvering than policy," the Canadians concluded in a memo after meeting with Austan Goolsbee, a senior campaign aide and now a member of Obama's Council of Economic Advisers.

    When the memo became public, Obama advisers rejected the idea as absurd and insisted that he was serious about changing NAFTA. Obama even suggested that the United States might opt out of NAFTA if the standards could not be improved to the nation's satisfaction.

    But some longtime observers of the U.S.-Canada relationship said Obama's current position appears to confirm the impression that Canadian officials got from the meeting with Goolsbee.

    "It sounds like [Goolsbee] was right," said former Massachusetts governor Paul Cellucci (R), who served as U.S. ambassador to Canada during George W. Bush's first term. "It looks like [President Obama has] softened that quite a bit, to put it mildly."

    That could anger some of Obama's staunchest labor supporters, who blame NAFTA for sending American jobs oversees by not requiring a level playing field in the areas of labor and the environment.

    But some of those allies said Thursday that they are giving the president more time to make good on his promise and praised Obama for finding a sophisticated way to express support for trade and changes to NAFTA.

    "I am happy for him to frame his way of positioning the issue any way he wants, as long as he actually delivers on the issue," said Lori Wallach, the director of Public Citizen's Global Trade Watch division. "If down the road Obama doesn't deliver on the policy, there will be a whole lot of really upset people."

    The trade discussion came as Canadians have expressed concern in recent days about the "Buy American" provision that Congress added to the $787 billion stimulus package that Obama signed into law this week.

    Harper said he has "every expectation" that the United States will abide by trade rules that forbid such preferences. But he used strong language to indicate how seriously the country takes that issue.

    "If we pursue stimulus packages, the goal of which is only to benefit ourselves, or to benefit ourselves, worse, at the expense of others, we will deepen the world recession, not solve it," he said.

    Obama and Harper also pledged to work together to battle terrorism, especially in Afghanistan, where Canadian soldiers have been fighting and dying for years.

    In his first public comments since sending an additional 17,000 troops to the war-torn country earlier this week, Obama said that "it was necessary to stabilize the situation there in advance of the elections that are coming up."

    The president declined to say how long the troops will remain there, citing a 60-day review he has ordered. Harper also declined to say whether his country's troops will remain beyond 2011, but said the long-term goal of the war should be constrained.

    "We are not in the long term, through our own efforts, going to establish peace and security in Afghanistan. That, that job, ultimately, can be done only by the Afghans themselves," he said.

    The president's trip to Canada was a traditional visit early in his term. The snow may have subtly reminded him of campaigning in the Midwest, as he said he was pleased "to be here in Iowa - Ottawa."

    He disappointed many Canadians who had hoped to see him at a public event. Instead, he waved briefly to a crowd of about 2,000 waiting in the snow as he walked to his meetings.

    He did surprise reporters with a brief stop at a converted indoor farmers market in a historic stretch of Ottawa afterward. He bought a keychain with Canadian currency, telling reporters that he was continuing a tradition of buying knickknacks when he travels.

    Obama and Harper also pledged cooperation to revive North America's closely linked economy and signed an agreement to work toward developing clean energy technology.

    "It will advance carbon reduction technologies. And it will support the development of an electric grid that can help deliver the clean and renewable energy of the future to homes and businesses, both in Canada and the United States," Obama said.

  

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Comments

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It's called reneging on your

It's called reneging on your campaign promises. Getting rid of NAFTA or "re-negotiating"doesn't mean we can't negotiate a trade agreement with Canada. That's what Bush was doing for the past few years--negotiating trade agreements with individual nations--because no one wanted CAFTA or other mass treaties. Perfectly possible, this article does not deal with the real issue of NAFTA & the WTO--which is capita/corporations removing business & manufacturing facilities from the US to go where it's cheaper & no environmental rules or labors laws, etc. Yet still getting favorable tax treatment, even if the headquarters are in a different nation. Canada was our major trading partner before NAFTA & continue to be so without NAFTA, i.e., NAFTA's existence isn't necessary for US & Canada to have a solid & mutually profitable trade relationship--this article raises a strawman.

So called free trade

So called free trade agreements are bad for the US but they can be devastating to the developing countries. When multinational corporations can operate within a country and not be held accountable for either their treatment of their employees or damage caused to the environment you are setting up a very dangerous situation. Nafta and Cafta are destroying small farms and small business where ever they tread, the basis for sustainability and recovery form economic hard times. And when this is coupled by handcuffing independent governments from proactive measures to help their own people because it might offend the multinational corporations what have we but tyranny. The trade agreements need to be rewritten to benefit people everywhere not Corporations. www.citizen.org/documents/WhyWeSayNOtoCAFTA.pdf

Hillary is in China assuring

Hillary is in China assuring China that we are still here for them. This is a serious conflict of interest, as it was Her Hubby, Bubba Clinton who gave us "The New World Order" and sent our industrial base to China. It was Hillary who was outsourcing our jobs to India. The Clintons have double-crossed the base of the Democratic party, the Working classes. Obama is simply to young and inexperienced, he does not have a clue. The depression is about to ruin the country. The blacks are in for a major suprise, as the stimulus is a diversionary tactic to get our minds of the real problem, China and Mexico. Thanks to the Clintons and the Bush Family they have ruined our industrial base.

As a Canadian, I do not feel

As a Canadian, I do not feel that Stephen Harper represents me or has my best interests at heart. I am appalled that he received 40% of the vote here in Canada. The reality is that the war in Afghanistan is as unpopular here as it is in many European nations and perhaps as many as 75% of the public supports a withdraw of troops. On NAFTA, many Canadians feel swindled by the America, particularly over the issue of softwood lumber (in which our prime minister betrayed Canada), which apparently at one point put a US senator's job in jeopardy. I might also point out that if there is outsourcing, it is probably going to Mexico or Asia, not Canada, where wages are almost as high and we too have lost jobs to outsourcing.

Ah yes, this does bring back

Ah yes, this does bring back memories.

During the campaign last year, senior Obama campaign aide, Austan Goolsbee, privately told Canadian officials not to pay any mind to Obama's anti-NAFTA campaign rhetoric because it was merely, in Goolsbee's words, "political maneuvering." Remember that?

The Goolsbee memo leaked and the Obama campaign brazenly denied that their candidate's anti-NAFTA stance was mere political maneuvering, insisting that he really would renegotiate NAFTA on behalf of environmental and labor interests if elected president. Back then, he actually needed progressives for something: getting himself elected.

But sure enough, Obama has just announced that his promised renegotiation of NAFTA will be shelved indefinitely. NAFTA will continue with no changes at all, just like his corporate paymasters want. All his tough sounding anti-NAFTA talk during the campaign really was nothing but political maneuvering after all.

Now that Obama is president, his progressive supporters have largely outlived their usefulness to him. So President Obama has filled his cabinet with foreign policy hard liners, Clinton holdovers, and Israel hawks. His Justice Department recently announced that it will take the same identical stance on preventing victims of US "extraordinary renditions" from having their day in court as the Bush Justice Department - no "change" at all. Obama clearly has no intention of prosecuting officials of the previous administration for spying on millions of Americans, lying us into a war, and violating the Geneva Conventions against inhuman treatment of detainees. Now this.

What... will... it... take... for this man to lose the support of progressives?!? How many more times will he get to sell out his progressive base with no political cost to himself? And will his starry eyed supporters ever run out of excuses for why the corporate panderer they put in the White House now acts like a corporate panderer?

Good Grief! Obama is

Good Grief! Obama is negeging on just about about all of his campaign "promises". To get rid of NAFTA would actually help other countries. It just won't help American Corporations. We were supposed to be getting out Iraq now we are not only not getting out of Iraq but we are getting even deeper into Afghanistan. We don't need that pipeline Mr. President. We have lots of wind and sun power. Even Saudi Arabia knows what is happening. Oil is no longer where the big bucks are.