A president must fight for an
open trading system to help American workers, farmers and businesses, as well as
to lead the international economy. The Constitution grants authority over trade
to the Congress, whose representatives reflect local interests. It takes
presidential willpower to look across and beyond individual interests, to build
coalitions for openness, and to help people adjust to change.
The starting point for a
president's commitment to open trade is his readiness to lead the fight for
trade negotiating authority. President Clinton tried but failed to renew this
authority, which dates back in various forms to the 1930s, and since the 1970s
has made trade agreements subject to Congress's approval but not amendment.
President Bush knew his first priority was to restore this Trade Promotion
Authority; his one-vote victory revived America's power to negotiate a more
level playing field after an eight-year lapse. Even after nearly two decades in
the Senate, John Kerry is uncertain whether he is for or against TPA, even
though it must be renewed early next year. Instead, Mr. Kerry wants a long study
that would conveniently extend months beyond when this hard-fought authority is
due to expire. The lesson of the past 30 years is that presidents must fight for
trade negotiating authority; if they are not certain they want it they assuredly
will not get it.
Mr. Kerry's vacillation on
trade extends further. His campaign has signaled the abandonment of
America's successful drive for Free
Trade Agreements. The Bush administration has completed FTAs with 12 countries,
is negotiating with 10 others, and is preparing for more. Together, these new
deals amount to America's third largest export market.
U.S. manufacturers forecast that
our new FTA with Australia alone will boost
U.S. manufacturing exports $2
billion a year. These cutting-edge agreements carry an importance beyond the
size of newly opened markets, because they set high, enforceable standards in
newer areas of importance to America -- such as services,
intellectual property, transparency and anti-corruption, and e-commerce. U.S.
FTAs are the only ones in the world that also include enforceable commitments on
labor and environmental laws, combined with aid programs that help developing
countries improve conditions cooperatively -- contradicting Mr. Kerry's excuse
for jettisoning FTAs.
The revived
U.S. momentum for free trade with
fair enforcement is attracting new reformist partners in Latin
America, Asia, Africa and the
Middle
East.
As the 9/11 Commission recognized, integrating trade and foreign policy must be
part of America's strategy to reduce poverty,
open markets and minds, and support democracy. But Mr. Kerry opposes free and
enforceable trade with poor Central Americans. He has backtracked on free trade
that he once supported within North
America. His retreat would leave
developing-country reformers abandoned by the U.S. Economic isolationism would
not build the multilateralism Mr. Kerry preaches.
President Bush came to office
determined to erase the stain of the World Trade Organization meeting in
Seattle, where the global trading
system nearly collapsed in 1999 amid violent protests in the streets and mixed
signals from President Clinton. The Bush administration led the drive to launch
new global trade negotiations in 2001 and then to get them back on track this
year. These Doha negotiations in the WTO are
now close to producing successful results in agriculture, goods and services
over the next year or so. A major lowering of global trade barriers could
combine with an upswing in global growth to deepen and extend world-wide
recovery. Yet while President Bush has been leading, Mr. Kerry has called for
the U.S. to renege on the last stage of
its commitments from the prior global trade round, even though Mr. Kerry had
voted for those very terms in 1994.
The rest of Mr. Kerry's trade
policy amounts to little more than additional litigation in the WTO. In
contrast, the administration has focused its enforcement work on achieving
commercial results, not just counting lawsuits. This April, for example, we
solved seven potential WTO cases with
China -- covering technology
standards, agriculture, services, and distribution rights -- without the delay
and uncertainty of WTO litigation. Yet when needed, we have not hesitated to
press for legal action in the WTO, such as our case against
China over a tax policy that
threatened $2 billion of U.S. semiconductor sales. Even
then, we pushed successfully for an early result without waiting for formal
legal panels. When we have litigated, the administration's winning record of 54%
is the same as that of our predecessor. While Mr. Kerry calls for more cases, he
undermines his own argument by saying the
U.S. should not comply with
unfavorable rulings.
Mr. Kerry's attacks on
"Benedict Arnold CEOs" who do business abroad suggest he either does not grasp
the workings of the global economy or is being duplicitous to curry favor with
economic isolationists. Foreign companies recognize the quality of American
workers, and that is one of the reasons why so many have chosen to locate plants
in our country. Would Mr. Kerry forgo the 6.4 million jobs in the
U.S. created by CEOs of foreign
companies? U.S. companies with operations
overseas account for 58% of U.S. exports.
America's services industries earn a
more than $50 billion surplus by operating around the world. More open markets
for trade and investment create opportunities by lowering costs, increasing
productivity, adding to families' standard of living, connecting more businesses
together, and enlarging America's influence. Attacks on
business across borders and calls for raising barriers reflect a defeatism that
would cripple America's vitality. President Bush is
committed to creating the jobs that trade brings.
To keep
America ahead in the international
economy, a president must know his mind on trade and be willing to build
coalitions for openness at home and abroad. President Bush has complemented his
aggressive trade strategy with initiatives to help Americans better manage
change in the global economy. He is seeking to modernize worker training,
education, pensions and health care by encouraging empowerment of families,
ownership and accountability, flexibility and choice. Mr. Kerry's profile on
trade -- hand-wringing on TPA, retreating from existing and new FTAs, hiding
behind bureaucratic reviews, welshing on our obligations, and relying on
rhetorical toughness without substance -- does not auger well for leadership,
either his own or America's.
---
Mr. Zoellick is the
U.S. trade
representative.
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