Sparring with the EU Trade Minister
President Bill Clinton sent a dramatic signal as he ushered into being the largest GDP-measured trade bloc in the world. Now, thirteen years after NAFTA came into effect, the Iowa caucuses are first on the campaign calendar, making the concerns of Iowans foremost on the candidates’ minds.
Polling in Iowa shows a close race for both Democrats and Republicans. The candidates are searching for the wedge issues to set them apart, and Senator Clinton must find a way to adapt her rhetoric in trying to reach globalization-weary Iowans. The Senator has said repeatedly that the U.S. should take a “time out” from free trade agreements, and reevaluate America’s place in the world economy, but most recently her approach has become more protectionist.
In an interview with the Financial Times this week, Senator Clinton said:
I agree with Paul Samuelson, the very famous economist, who has recently spoken and written about how comparative advantage, as it is classically understood, may not be descriptive of the 21st century economy in which we find ourselves. …
I want to have a more comprehensive and thoughtful trade policy for the 21st century. There is nothing protectionist about this. It is a responsible course. The alternative is simply to pick up where President Bush left off and that is not an option.
Not the words you want to hear from the leading (per the polls) Democratic candidate for president. Today, the European trade commissioner responded:
It would be a fundamental mistake to encourage the public perception that foreign investment in our economies is, in essence, a bad thing – even when the shareholders are government-linked.
The apparent scepticism about a Doha world trade deal that Mrs Clinton expressed in the Financial Times this week, and her suggestion that there is a need to shelter American companies and interests from foreign investment, are a disappointing sign of the times.
Her words are cautious and indefinite. Would she consider expanding on trade agreements as President? Possibly. Would she halt cooperation on international trade policy as President? Possibly. Is this the intention of the Senator’s remarks? Quite possibly.
Photo credits: WikiCommons, igdi.org