International Trade

by Edward Grabianowski

October 2004

The Issue

International trade issues generally revolve around import tariffs, trade agreements with individual countries, and broad, multinational trade agreements like the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). Free trade means the elimination of tariffs, taxes, and import fees, and cutting through the red tape of complicated import rules intended primarily to protect a particular nation's industries. For example, it is very difficult to import U.S. autos into Japan because of the complicated rules Japan has put in place for imported cars. Free trade agreements can also provide incentives for companies to move their operations to places where worker wages and other costs of business are lower, and environmental standards are weaker.

Proponents of free trade say these agreements create jobs by eliminating obstacles to businesses and corporations. Those opposed to free trade agreements agree, but they point out that the jobs "created" are usually low-paying jobs with no benefits, and that the obstacles being removed include environmental protections and worker safety.

Currently, the U.S. is part of NAFTA, which is a free trade agreement between Canada, the U.S., and Mexico. NAFTA was enacted under President Bill Clinton in 1994. Trade officials have not performed a comprehensive study of NAFTA's effects to see if it has lived up to its promises of expanding trade, creating jobs, and increasing worker wages, all while protecting the environment and workers. Independently conducted reviews indicate NAFTA has, in fact, had the opposite effect. Nevertheless, there is a strong push for an expanded NAFTA, called the Free Trade Area of the Americas (FTAA). This would add every nation in the western hemisphere to NAFTA.

The U.S. is also a member of the WTO, a global trade group formed in 1995. The WTO eliminates barriers that might hinder corporations from extending their operations internationally, and opens new markets to these giant global businesses. It also imposes rules and dispute procedures meant to enforce international trade laws. Opponents of the WTO, who have demonstrated vocally (and sometimes violently) at WTO meetings around the world, claim the agreement takes economic decision-making out of the hands of the people, hurts indigenous farmers and businesses, tramples environmental protections and workers' rights, and operates in a secretive, undemocratic manner.

Badnarik: Position and Record

Badnarik says organizations like the WTO and agreements like NAFTA don't represent free trade, but are actually managed trade. The thousands of pages of rules and regulations represent yet another layer of stifling government control. Instead, Badnarik favors true free trade between people, companies and industries, free from government interference.

Tariffs that support domestic industries in the short term are disastrous in the long term, according to Badnarik. They hurt foreign workers and American consumers, and encourage inefficient practices by domestic industries. He also feels that open trade encourages peace, and that trade embargoes and sanctions are usually precursors to war.

Record:

Since Badnarik has never held a public office, he has no voting record on this issue.

Bush: Position and Record

Bush is a major supporter of free trade. He envisions a free trade zone extending from Alaska to "the tip of Cape Horn." Not only is Bush strongly in favor of the FTAA, he supports the removal of tariffs and import controls in all countries. In addition, he wants "fast track" negotiating authority, which would allow him to agree to trade agreements without approval from Congress. Bush is a WTO supporter, as well.

Record:

  • Although he supports free trade and the elimination of tariffs, Bush enacted heavy tariffs to protect the U.S. steel industry when it pressured him. Less than two years later, Bush repealed the tariffs under threats that they violated WTO rules.
  • As president, Bush has signed trade agreements with Chile and Singapore, and a bill that gave trade preference to the Andean nations in South America.

Kerry: Position and Record

Kerry supports free trade, but he has declared that he will order a 120-day review of all existing trade agreements to make sure the United States' trade partners are keeping up their end of the bargain. Specifically, he wants to make sure environmental protections and worker's rights are being respected. Kerry thinks the U.S. should veto FTAA and other trade agreements until they have stronger environmental and labor standards in place. He does not think NAFTA should be repealed, but that it should be monitored more closely and probably reformed.

Kerry has proposed incentives to keep jobs in the U.S., including tax breaks for U.S. businesses, removal of incentives to move businesses to other countries, and tax credits for manufacturers who create and maintain jobs. Another element of Kerry's plan is education -- by making college education affordable for Americans and supporting worker training programs, Kerry wants to make the work force a valuable asset that can help keep jobs in the United States.

Record:

  • 2002 - Voted yes on Andean trade agreement and fast-track trade negotiating
  • 2003 - Did not vote on Chilean and Singapore trade agreements
  • 2001 - Voted yes on granting normal trade relations to Vietnam
  • 2001 - Voted yes on a bill that extended an older set of sanctions against companies investing in oil or gas power in Libya or Iran
  • 2000 - Voted yes on granting normal trade relations to China
  • 1994 - Voted yes on General Agreement on Tariffs and Trade (GATT), a precursor to WTO
  • 1993 - Voted yes on NAFTA
  • 1995 - Voted yes on trade sanctions against Japan as punishment for their closed auto market
  • 1997 - Voted to table an amendment that would require Congressional approval of trade agreements that would change U.S. law

Nader: Position and Record

Nader supports what he calls "fair trade," rather than free trade. He opposes wide-reaching trade agreements such as NAFTA and the WTO, but realizes they can't be abolished. He wants them rewritten "as if human beings mattered." Nader claims that under free trade agreements, the U.S.'s biggest export has been jobs, mainly high-tech jobs to other countries. He also fears that NAFTA, FTAA, and WTO rules are written such that they supercede the laws of the participating nations. This allows corporations to circumvent labor and environmental laws written to protect people's health, safety, and economic well-being.

Record:

Because Nader has never held a political office, he has no voting record on international trade.

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