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Friday, April 11, 2008
Linda Chavez :: Townhall.com Columnist
Democrats Trade Hypocrisy
by Linda Chavez
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Democrats' hypocrisy knows no bounds when it comes to free trade. The latest example of duplicity comes from the Clinton campaign, which was forced to announce on Sunday that chief strategist Mark Penn would be stepping down from his official post. It seems Penn had been doing a little moonlighting on behalf of the government of Colombia in its efforts to win a free-trade agreement with the U.S. -- something Hillary Clinton vigorously opposes.

Penn, who has earned around $15 million from the Clinton campaign for providing strategic advice, never gave up his other job as worldwide CEO of the large public relations firm Burson-Marsteller, which represents Colombia. He had promised Hillary, however, that he'd recuse himself from dealing with the issue personally. But then last week Penn met with Colombia's ambassador to the U.S. just as President Bush was about to send the Colombia free trade agreement to Capitol Hill.

Of course, the Clinton campaign isn't the only one that has been embarrassed on the trade issue. Earlier, Barack Obama got egg on his face when one of his economic advisers, Austan Goolsbee, told Canadian officials that Obama didn't really mean what he said when he was busy bashing the North American Free Trade Agreement.

But the real problem for the Democrats isn't undisciplined campaign advisers -- it's the candidates' ridiculous pandering on trade itself. Clinton and Obama are worried that they might offend the protectionist labor unions that provide money and "volunteers" -- actually, paid union staff -- critical to their fortunes in November, whichever one of them gets the nomination. So, they prattle on about the dangers of trade pacts like the one President Bush is proposing Congress fast-track with Colombia. And they never let facts get in the way of their claims that free trade costs American jobs.

In the case of the Colombia agreement, the Democrats' criticism is even more outrageous -- namely that we can't sign a pact because Colombian trade unionists have sometimes been assassinated. Obama has gone so far as to suggest, "You've got a government that is under a cloud of potentially having supported violence against unions, against labor, against opposition." In fact, Colombia's president, Alvaro Uribe, has fought hard against extremists of both left and right in his country, and crime against labor leaders is actually lower than against other sectors of the population. Indeed, Uribe is one of America's strongest allies in Latin America, and he has had remarkable success rescuing a nation that was on the brink of anarchy a few years ago.

The Colombia free trade pact will help the U.S. every bit as much as it will Colombia -- in some ways, more. The overwhelming majority of Colombia's exports to the U.S. -- 90 percent -- already are free of tariffs, but our exports to Colombia face heavy tariffs of up to 35 percent -- and depending on the product, sometimes much more -- for everything from consumer goods to agriculture. If Congress acts favorably on the agreement, 85 percent of our industrial and consumer exports will be tariff-free, and eventually 100 percent of our exports will be. Now, however, House Speaker Nancy Pelosi is threatening not to allow a vote on the issue at all, jeopardizing not just this agreement, but our ability to negotiate future trade agreements, as well.

A secure and economically viable Colombia helps us in many ways. The U.S. faces unfriendly governments in several Latin American countries, most notably Venezuela under the dictator Hugo Chavez. We need all the friends we can get in the region -- and rejecting the Colombia agreement will be a real slap in the face of a strong ally. President Uribe has cracked down on narco-traffickers, seizing 500 metric tons of cocaine in 2006 alone -- and these groups wreak havoc not only by financing terrorism in their home country, but flooding our inner cities with drugs that breed crime and corruption.

Instead of firing their campaign advisers because they made the candidates look like hypocrites, Hillary Clinton and Barack Obama should rethink their own positions on free trade. Clinton has previously made some sensible statements on the issue, and one of her husband's few major accomplishments in office was winning approval of NAFTA. And Obama is too smart a fellow to not realize that what he says about NAFTA and the Colombia agreement is utter nonsense. But I won't hold my breath for either of them to show real leadership by rejecting protectionism.

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About The Author

Linda Chavez is chairman of the Center for Equal Opportunity and author of Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics .

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©Creators Syndicate
Democrats Trade Hypocrisy

Don't we, the US, benefit from the removal of trade barriers? Compared to other modern nations in Europe, life here is much less expensive.

We like our stuff to be manufactured abroad in order to keep the prices of goods low. We like our food cheap and our TVs, etc.

Folks throw around words like "corporations" as if US corps. are not simply companies run by human beings who employ human beings known as the Middle Class! We need these "major corporations" to grow in order to maintain a corporate culture that can employ our kids when they graduate!

My buddy works for a American "corporation" who has their manufacturing in China because it keeps their costs down so the company can compete. Now they're opening a plant in Vietnam where labor is even cheaper. That's just the way the world is now. American "corporations" do NOT have a choice if they want to remain competitive and retain their American customers.

Would Americans be happy paying extra for goods in a "protected" market? Of course not.

But for the most part, nasty "corporation" MUST take advantage of a tariff/tax-free system in order to stay in business and keep us happy.

Again, who are these big bad corportations? They the ones employing the people you sit next to on the morning communter train every morning! Unless you're a real maverick, most of the regular suit-and-tie American middle class works for corporations and they know there business--First and foremost--is to stay in business by turning a profit.

In the long run, the removal of trade barriers helps corporate American who are, essential, the American Middle Class, they are not "sexy", they are ignored by the media because they pay their morgages, send their kids to State U. and know how to be successful when the govt removes instead of erecting barriers.

Economics 101
ClaireSolt writes: "Jobs come from entrepreneurs, not pols. What's all this "we" talk about jobs? There is no such thing as American jobs, and there is no way the government can compel a losing venture to stay open and pay a workforce that is not competitive."

Amen!

As to the "rust belt's" inefficient factories -- capital gains PAY for capital investment.

Unfortunately every company has TWO customers. Those that buy the products produced or manufactured and those that "own" the company.

Those that own the company want LARGE returns on their investment in the company, Tens of dollars for every hundred invested. Not a few pennies per hundred. If companies kept more of the profit to reinvest back into newer more efficient equipment, or better wages and conditions they would. Because it is good business to take care of business.

But, when investors (and I am one too) have an attitude of "instant" gains. It is hard NOT to placate them, since if you don't, they will sell their stocks and eventually your company will fail. One way to "stall" this is to make the company private, and only a limited number of shares held by a few, or become a "company owned" company, where only employees can own shares.

This is before, taxes, mandates, union demands, and bribes (often the only way to do business overseas).

Lessons I learned in High School from Junior Achievement.
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