Trade-Skeptic Dems Put Our Economy at Risk, Says IPI

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June 6, 2008

DALLAS, June 6 /PRNewswire-USNewswire/ — According to a news report from National Journal, congressional Democrats, “claiming an election-year mandate,” have introduced labor-backed legislation to “call a time-out on free trade agreements.”
This news item is merely one in a series of examples showing that the belief that trade between nations benefits both parties is under continued assault. Trade is integral to economic growth — limiting trade hurts both developing and developed nations.
“This isn’t about free trade, this is only about protecting union jobs against competition,” said Dr. Merrill Matthews, Resident Scholar at the Institute for Policy Innovation (IPI).
“If the Democrats think there was a referendum that centered on free trade, the rest of us must have missed it,” said Matthews. “There has been no referendum and very little discussion of where the country wants to go with free trade in a global economy.”
However, most of the Democrats backing this new legislation don’t call themselves protectionists; they say they want “fair trade,” or some other nuanced distinction without a difference.
According to reports, the new bill would require existing trade agreements to be reviewed against safety, labor and environmental standards, and if found to be lacking, the agreements would be forced into renegotiations by the president before any new trade deals could be considered.
“If Democrats really want to reinvigorate a multilateral role for the U.S. role in international relations, the last thing you want to do is unilaterally assert that we’re going to renegotiate agreements,” said IPI president Tom Giovanetti. “That’s acting like a boss, not a partner. Trade barriers and tax increases are precisely the two policy mistakes that gave us the Great Depression,” said Giovanetti. “It’s troubling to see today’s Democrats apparently heading in that same dangerous direction.”
There is no place for protectionism in a global economy, and - like it or not - a global economy is what we have.
The Institute for Policy Innovation is an independent, non-profit public policy organization based in Dallas, Texas. Experts are available for interview by contacting Erin Humiston at (972) 874-5139, or .
Institute for Policy Innovation