While the confirmation hearing of USTR nominee Ron Kirk has been postponed to next Monday, those of us seeking some positive signaling from the Obama administration about its future trade policies will do well to read the 7-page "Overview of the 2009 Agenda" in USTR's 2008 Annual Report, released yesterday. While couched in cautious terms, that are overtly faithful to the stated goals of incorporating labor and environmental clauses in FTAs, the agenda clearly recognizes the need to open foreign markets and that this will mean negotiating trade agreements in multilateral and bilateral settings based on fast-track authority, which will be sought after consultations with Congress. The NAFTA renegotiation spat has been reduced to language about working with Mexico and Canada to identify ways in which NAFTA could be improved without having an adverse effect on trade.
The bottom line:
Our agenda is to combine the best elements of previous trade policies, especially a rules-based system of global trade, with a determination to make trade policy a powerful contributor to the President’s national economic agenda for revival of the global economy and renewal of growth that benefits all people. If we work together, free and fair trade with a proper regard for social and environmental goals and appropriate political accountability will be a powerful contributor to the national and global well being.
And from the Chapter on the WTO (Italics in the original):
We underscore the critical importance of rejecting protectionism and not turning inward in times of financial uncertainty. In this regard, within the next 12 months, we will refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports.
All this isn't saying much, but it shows potential for a nuanced and pragmatic pro-trade approach, as well as (in other segments) an understanding that US leadership is crucial for progress in the WTO.T.
