Commentary: Obama, NAFTA and Free Trade

(Forbes – Daniel Hemel)

New Mexico Governor Bill Richardson is a pro-free-trade Democrat. That renders him, in his own words, “an endangered species.” But if the Democratic free-trader is a rare bird that nests primarily in the deserts of the U.S. Southwest, that breed won a new lease on life this week.

On Monday, aides to Barack Obama confirmed that Richardson would be the president-elect’s selection for secretary of commerce. Unlike the appointment of New York Federal Reserve Bank Chief Timothy Geithner as Treasury secretary – which sent stocks soaring – news of the Richardson pick barely registered on Wall Street.

But the Richardson selection may be the clearest signal sent by Barack Obama so far regarding his economic policies. Despite Obama’s anti-trade rhetoric during the 2008 campaign, the choice of Richardson as commerce secretary means the president-elect is much less likely to follow a protectionist course.

What makes the Richardson pick so significant? Three reasons stand out. First, Richardson owes his political ascendancy to the North American Free Trade Agreement (NAFTA). Second, Richardson, whose own White House bid fizzled in early January, stood out from the rest of the Democratic pack as the most pro-free-trade candidate during the campaign. Third, Richardson’s remarks in recent months offer clear insights into his – and Obama’s – true views on trade. Read the rest here.