March 8, 2015

Obama Needs GOP for TPP

Michael Froman received from a Harvard Law School classmate, Barack Obama, a job that validates the axiom that the unlikelihood of any negotiation reaching agreement grows by the square of the number of parties involved. In trade negotiations, even one’s own country is troublesome, as the catfish conundrum illustrates. And the degree of difficulty in achieving a free trade pact is proportional to the number of Democrats in Congress. As U.S. trade representative, Froman’s goal is completion and ratification of the Trans-Pacific Partnership involving the United States and 11 Asia-Pacific nations, from Chile to South Korea, who generate 37 percent of the world’s economic product. The TPP aims not just to liberalize trade but to reform some of these nations’ domestic policies, particularly concerning labor and environmental issues, partly to entice certain Democratic constituencies to soften their opposition to free trade.

Michael Froman received from a Harvard Law School classmate, Barack Obama, a job that validates the axiom that the unlikelihood of any negotiation reaching agreement grows by the square of the number of parties involved. In trade negotiations, even one’s own country is troublesome, as the catfish conundrum illustrates. And the degree of difficulty in achieving a free trade pact is proportional to the number of Democrats in Congress.

As U.S. trade representative, Froman’s goal is completion and ratification of the Trans-Pacific Partnership involving the United States and 11 Asia-Pacific nations, from Chile to South Korea, who generate 37 percent of the world’s economic product. The TPP aims not just to liberalize trade but to reform some of these nations’ domestic policies, particularly concerning labor and environmental issues, partly to entice certain Democratic constituencies to soften their opposition to free trade.

Some developing nations, such as Vietnam, welcome some compulsory rationality – being required by trading rules to limit subsidies to sclerotic state-owned enterprises. But beware of ostensibly altruistic protectionism – protectionism with moral pretensions. Sometimes poorer nations want higher standards forced on them. Other times rich nations use higher standards to raise production costs in, and thereby lower the competitiveness of, poorer countries.

Negotiation and ratification of TPP will be easier if Congress gives Obama what prior presidents have received – “fast track” authority guaranteeing an up-or-down vote on the agreement without amendments. But Obama’s aggressive aggrandizement of executive power through unilateral actions (regarding the Affordable Care Act, immigration, etc.) has been unprecedented in its sweep and undisguised in its disdain for Congress. This has produced the much-praised but elusive joy of bipartisanship: Conservative Republicans, eager to express separation of powers rectitude, are joining liberal Democrats, eager to derail any agreement, in opposing fast track.

Immersed in this political equivalent of three-dimensional chess, the administration is serenely confident that there will be enough Democratic votes to join with large majorities of Republicans to ratify what is negotiated, even without fast track. And even if Republicans representing Southern catfish farmers must be mollified by restricting imports of Asian catfish that are processed in American plants in blue states.

The two largest achievements during Bill Clinton’s presidency occurred in spite of Democrats. Welfare reform was forced upon him by a Republican-controlled Congress (he vetoed it twice before relenting), and the North American Free Trade Agreement was ratified in spite of congressional Democrats (a majority of whom voted against it). Now, TPP – potentially the best result of the Obama years – depends on Republicans.

Democrats are plucking up the protectionist banner unfurled by 19th-century Republicans, who were tireless defenders of the strong (manufacturers) against consumers. Today, many Democrats agree with Connecticut’s Rep. Rosa DeLauro, who says America “has lost 5 million manufacturing jobs since NAFTA.” Notice the slippery language (“since NAFTA”) and remember the post hoc ergo propter hoc fallacy: The rooster crows and then the sun rises, therefore the crowing caused the sunrise. Manufacturing jobs have been declining as a share of total employment since 1950 and in actual number since 1979. But because of productivity improvements, manufacturing production and exports are near all-time highs.

Granted, Froman says, some imports substitute for domestic products. But many imports are “intermediate goods” that go into the production of domestic goods, some of which are exported. And, he says, 50 percent of imports from Canada and Mexico, our first and third largest trading partners, are used as inputs in the manufacturing of American products. Furthermore, Froman says, free trade is progressive in the sense that lower-income Americans spend a larger portion of their disposable income than more affluent Americans spend on such imports such as food and clothing.

You who are reading this column probably have a chronic, indeed incurable trade deficit with your barber or hair dresser. You regularly buy what he or she sells yet he or she never buys anything from you. But things somehow work out. As they do between nations, because as the late Robert Bartley, editor of The Wall Street Journal’s editorial page, once wrote, “International transactions are always in balance, by definition.”

“Protectionism,” said Clinton during the NAFTA debate, “is just a fancy word for giving up; we want to compete and win.” But now, even more than then, Democrats are the party of an America in a defensive crouch, flinching from globalization’s challenges. Besides, progressivism’s constant agenda is to expand the role of government and contract the role of markets in allocating wealth and opportunity. Republicans rescuing Obama’s best idea would be an interesting coda to his presidency.

© 2015, Washington Post Writers Group

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.