Is Obama an internationalist or trade sceptic?

Fri Nov 7, 2008 1:49pm GMT
 
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By Jonathan Lynn - Analysis

GENEVA (Reuters) - In Barack Obama, America's trade partners face a man who has strong internationalist instincts yet is committed to defending U.S. jobs.

At a time when the need for economic stimulus is matched by pressure for tighter regulation, the politician drawing support from the unions and one who wants the United States to benefit from global integration may both find their hands tied.

The incoming president has shown he is aware of the jaundiced view many U.S. voters have of trade, even if he does not share it himself.

Speaking in April about the frustrations of small-town voters bitter over job losses, Obama described people who "cling to guns or religion ... or anti-trade sentiment."

He wants to amend the NAFTA trade agreement between the United States, Canada and Mexico to strengthen labour and environment standards, and favours a tough line with China over its huge and growing bilateral surplus with the United States.

However, an 18 percent rise in U.S. exports in the first eight months of this year is one of the few bright spots in an economy already contracting in the third quarter, and no U.S. president can afford to dismiss trade.

"When he talks in general terms he's strongly pro-trade, he's strongly pro-globalisation, he's strongly pro an interconnected world," said Fredrik Erixon, director of the European Centre for International Political Economy (ECIPE).

"I wouldn't call him a free trader, but I would call him an internationalist."  Continued...

 
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