Some Truth About Trade

(NY Times Editorial)

There’s nothing like international trade to help bridge the nation’s ideological divide. As Barack Obama and Hillary Clinton travel the Rust Belt, the Democratic candidates seem to be eschewing the advice of their economic advisers and turning to Karl Rove’s playbook.

It was Mr. Rove who urged Dick Cheney in 2000 to forget the free trade spiel and promise voters in West Virginia that a Bush administration would protect American steel from cheap imports. “If our trading partners violate our trade laws, we will respond swiftly and firmly,” Mr. Cheney thundered.

Those words seem to echo in Mr. Obama’s attacks against “unfair” trade deals — including Nafta, Cafta and President Bill Clinton’s decision to establish regular trade relations with China. Mrs. Clinton seems to draw inspiration as well, railing to the Pennsylvania A.F.L.-C.I.O. against alleged dumping of Chinese steel: “When I’m President, China will be a trade partner not a trade master,” she said.

Such pandering may play on the stump, especially in Pennsylvania, where workers fear for their jobs as the country’s manufacturing base shrinks. Mr. Bush won West Virginia, only the fourth Republican to do so since 1932. Still, whoever wins in November would be foolish to choose protectionism.

Democrats need to tell voters the truth: First, trade is good for the economy, providing cheap imports and markets for exports, spurring productivity and raising living standards. And second, while trade can drive down some wages and displace some jobs, Democrats have real ideas to help workers cope. Mrs. Clinton and Mr. Obama should base their approach on these ideas. They would not only make sound policy, they would also provide a competitive advantage over John McCain.

Fortunately, presidents don’t have as much power on these matters as candidates claim. When President Bush put stiff tariffs on imported steel in 2002, he infuriated European allies and then had to lift the tariffs when the World Trade Organization declared them illegal. Read the complete editorial.