• BY MAJOR TOM
  • March 31, 2008 | 10:33 am




Global Politics, Current Events

The Democrat’s Free Trade Gambit

Obama & Clinton


SO IT’S NOW A CERTAINTY—if the Democrat’s win the U.S. Presidential Election this coming November, it would be the downside for global economy as both Democratic Party nominee aspirants have voiced out their disillusionment with free trade. Some months ago, Barack Obama had to apologize publicly for announcing his intention of cutting back down or tightening trade stipulations in the North American Free Trade Agreement (NAFTA) America it has with Canada, and thereon with it’s southern neighbor Mexico. While I thought that Mr. Obama was merely alone in this precept, I found out lately, while updating myself with the latest developments in the presidential race over there, that Ms. Hillary Clinton holds the same sentiment.

This becomes now a vital issue not merely in the coming polls in America, but subsequently throughout the four corners of the world, that if the Democrat’s win in November, the global thrust of freeing trade from tariff restrictions and other economic barriers would be broughgt back a great number of years, parlaying the substantial gains it had in the Doha Round.

Not that we could entirely blame Mr. Obama and Ms. Clinton for their perspectives on free trade for America have been losing jobs and economic advantage over the recent years in very dramatic fashion, where every major American multinational have locations in China or elsewhere in Asia. And if the this trend goes on and on unabated, the U.S. economy would surely go towards a steep downward spiral, when in fact as of the present, a dragging slowdown is biting the economy over there like a giant leech that couldn’t be taken out even through the smartest financial surgery.

But are they doing the right thing?

It couldn’t be helped to assume that both Obama and Clinton is merely taking advantage of the gaining disillusionment of the Americans over the negative results of intense globalization and loosening of trade barriers to their country, losing jobs by the hundreds of thousands as every major American products is now either manufactured or assembled in China or Vietnam. And if they pander on this sentiments, their party would surely amassed most of the votes this coming November in a huge way, and along with the Americans well-rooted dissuasion with the Iraq War that President George W. Bush had started, one could say that the Democratic presidential nominee—either Obama or Clinton—has a monkey-wrench hold of the presidential victory later this year.

I have a feeling that despite the seemingly reasonable concerns of both Obama and Clinton on free trade, America may not really be able to untangle itself from the overly mature growth of liberalization of trade all over the world, where every nation today have already committed themselves towards free trade and free flow of goods and labor in the coming years or decades. At this point, not even America could hold it back or reverse the flood of global intention to make trade free and fair among every trading nation all over the world. It’s like perhaps Al Gore’s well-publicized intention to bring America towards the Kyoto Protocol and agreement to steep industrial gas reduction where for example that he had won the presidential election years ago and once he was already in the top position, he wouldn’t still be able to carry this intention anyway—at least not wholly as he had intended it—for such action would greatly bring damage to the American economy to the extent that a radical reduction in industrial fumes would mean stifling and paralyzing the U.S. economy. He wouldn’t have done it in the end.

And so as with the nascent Democrat’s battlecry of pulling America away from free trade and towards economic isolationism because the moment it disengages itself from the ever-persistent call for global trade liberalization, there might be disastrous economic impact on America where China becomes continually and slowly indestructible as an alternative trading partner, along with the European Union and countries in South America as well as ASEAN where the Philippines is a member. What America should better do in the process is not to dispel free trade entirely but find ways instead on how to buffer or adjust to an entirely new environment that global free trade connotes, like for example re-examining high labor cost in America and uncompetitive pricing of American manufacture.

America has to go with the flow of trade liberalization or be left behind. You might think that this could be the most incredible thing to happen to the biggest nation in the world, but you know, it could happen.



11 Comments »

  1. barrycade Says

    i’d like to believe obama and hillary are saying this to get the mass votes from the disillusioned as you call them. there’s always something about candidate pronouncements that make me believe we’re just being taken for a ride.

    Made on March 31, 2008 @ 11:27 am

  2. Major Tom Says

    To barrycade: I have the same feeling on this–it’s merely politicking. Going away from free trade is such a crazy idea for America, when in fact they had been the ones that had started all this. Now that the marbles are all not theirs, they want out of the game. That’s so unfair and unsportsmanly to be sure.

    Made on March 31, 2008 @ 11:36 am

  3. sparks Says

    Obviously these politicians’ electoral campaigns will strive to be as populist as possible. That doesn’t guarantee they will do exactly as they promised once elected in office. I’ve been listening to Obama’s speeches lately. He likes the word ‘regulation’ a lot. Also, global economic growth for the last decade has been mainly fuelled by American credit expansion and consumption. They’re paying for it now. The rest of the world will pay for it later.

    As for the Doha Round, I think the jury has long spoken that was a dud, especially for developing countries.

    Made on March 31, 2008 @ 12:10 pm

  4. Major Tom Says

    To sparks: Often, Obama’s eloquence could border on filibustering; I think it’s time he put more reason to his subtle words or he’d be just like that, golden tongue with nothing more except that.

    Made on March 31, 2008 @ 12:18 pm

  5. snglguy Says

    Even if Obama wins, I doubt if he’ll be able to economically extricate the US from China. The Americans are currently having a love affair with the cheaper Chinese-manufactured goods.

    Made on April 1, 2008 @ 12:33 am

  6. Sidney Says

    I am an Obama fan!

    I think what a candidate says during election time is not exactly what he will do when he becomes president.
    That is mostly the case… we are speaking about politicians here… ;-)

    Made on April 1, 2008 @ 7:43 pm

  7. bw Says

    Its a classic case of partisan politics - denounce everything the other party does to get pogi points :(

    It is amazing how these US politicians portray to be creative and smart by inventing new ways to bail them out from a horrendous deficit when they have a surefire way of battling the demon - raise bloody taxes !

    No candidate WOULD DARE suggest a tax hike for fear of voter backlash !

    Made on April 1, 2008 @ 9:44 pm

  8. Major Tom Says

    To sngl: That’s gonna one of a helluva kind of mission-to bring back the old American economy, with all those big cars they produce and so very bloated salaries and benefits—it’s like Obama’s having some illusion.

    Made on April 2, 2008 @ 8:23 am

  9. Major Tom Says

    To sidney: You bet they are as crass as any pol but I still have some faith in the American kind of politician, to do what they’re mouth is saying for afterall, they ain’t in the third world like the Philippines, that is full of bad pols… :-)

    Made on April 2, 2008 @ 8:26 am

  10. Major Tom Says

    To BW: At least the pols over there are approaching the issue like they are really concern about such thing as budget deficit. Here in our country, candidates won’t talk about these issues for they’d be so unknowldegeable and unconcerned. They say the first 2 years of the presidency here is all about learning how to run the country, and that’s a lot of waste of time.

    Made on April 2, 2008 @ 8:29 am

  11. Sidney Says

    Canadian TV reported that an advisor to Obama and (a little more loosely) a Clinton contact had assured the Canadian embassy that all the NAFTA-bashing in Ohio was just campaign hoo-ha. Obama and Clinton both denied it, as did the Canadian embassy.
    http://weblogs.newsday.com/news/local/longisland/politics/blog/2008/02/updatecanadanaftaobamahill.html

    The hardest thing about any political campaign is how to win without proving that you are unworthy of winning.
    -Adlai E. Stevenson-

    Made on April 2, 2008 @ 7:38 pm

RSS feed for comments on this post.

Leave a comment



Anti-spam measure: please retype the above text into the box provided.