It won’t get as much notice as his budget proposal, but President Obama’s “2014 Trade Policy Agenda,” which was released this week, sends an exceptionally powerful signal regarding the administration’s economic vision.
Unfortunately, it’s the wrong signal.
While the president—in his public pronouncements and his budget—is saying a lot of the right things about income inequality and investment in infrastructure and job creation, the White House has yet to recognize the harm that is done to the American economy—and to prospects of economic renewal that the president envisions—by failed trade policies.
At a time when the United States continues to experience overwhelming trade deficits—$38.7 billion in December—there is little in the way of new thinking in the report. In fact, as Public Citizen’s authoritative “Eyes on Trade” blog notes, “Much of the 2014 agenda is a copy and paste of the 2013 agenda, reiterating USTR’s stock set of talking points, such as the tired, counterfactual promise that a more-of-the-same trade policy will boost exports.”
The 2014 agenda statement outlines the efforts of the administration to advance new free-trade initiatives—the Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Partnership—that build on the approach of the North America Free Trade Agreement, the Central American Free Trade Agreement and the permanent normalization of trade relations with China.
The problem with the old way of doing things is that it has not worked. US Senator Sherrod Brown, the Ohio Democrat who authored the book, The Myths of Free Trade (New Press, notes that “we’ve seen more than five million jobs lost to our ‘trading partners,’ in NAFTA, CAFTA, and China…”