Since taking office, President Obama seems to have discovered that anti-trade rhetoric, while popular on the campaign trail, isn't so useful to a sitting president whose policies will have lasting consequences, says trade analyst Daniel J. Ikenson in a new Cato study.
In "Audaciously Hopeful: How President Obama Can Help Restore the Pro-Trade Consensus," Ikenson and international trade attorney Scott Lincicome argue that the time has come “to arrest and reverse America’s misguided and metastasizing aversion to trade,” which has “been shaped overwhelmingly by relentless political rhetoric.”
The authors' suggestions for President Obama include:
- Establish a “trade transparency initiative,” with the goal of publishing independent findings about the effects of trade and trade barriers on the U.S. economy, without political interference.
- Reinforce for Congress the fact that a unilateralist trade policy undermines multilateral foreign policy, as well as President Obama’s personal efforts toward repairing America’s damaged image abroad.
- Craft a pragmatic, principled approach to enforcement of standing trade agreements.
- Adopt a China policy of carrots and sticks, including a continued push for China to open more of its markets while resorting to the WTO dispute settlement system only when the situation and facts support doing so.
- Craft a proactive agenda now for implementation when trade consensus re-emerges.