Last week, the trade‐skeptic activist group Iowa Fair Trade Campaign (whose name tells you all you need to know) sent a letter to all the candidates, asking for their views on “an acceptable trade and globalization policy.” The results are revealing, if disheartening for advocates of more liberal trade and economic growth.
Overall, the five Democrats (the only respondents at press time) lay out an agenda more preoccupied with fair labor rights and environmental standards than the free exchange of goods between people who want to sell them and people who want to buy.
Clinton
Of the three top Democratic candidates, Sen. Hillary Clinton’s letter was the least strident. She pledged to review all existing trade agreements and craft a “comprehensive, pro‐America trade policy.” There was much talk of plans, distributing the economic benefits of trade (well, at least she acknowledges they exist) and a “comprehensive innovation agenda to encourage the development of new product and industries” (as if the market doesn’t do that already).
Edwards
Clinton’s measured response stands in stark contrast to that of John Edwards, whose letter to the trade campaign rails against “special interests” and those who would “exploit workers.” Among the general and predictable criticisms, a few statements stand out as especially alarming. Edwards claims trade causes “downward pressure on every worker’s wages” and calls for “not (trading) with countries where being a trade‐unionist means putting your life at stake.”
If Edwards literally meant not trading at all with those countries, then Americans could see their exports to and imports from many trading partners reduced dramatically. Our trade with Colombia, where murders of trade unionists have held up passage of a trade pact, amounts to $15.5 billion a year. Does Edwards truly mean to give that up?
Edwards’ proposal to “let our WTO trading partners with which we have material deficits know that the current WTO constructs are simply not working” — presumably as a prelude to “fixing” them — is badly misguided. Will Edwards welcome the inevitable phone calls from countries with which the United States has a material trade surplus, asking for a similar renegotiation of the rules to satisfy their own mercantilist impulses?