The White House has announced that it wants to move ahead with a long-ignored trade pact with South Korea. The deal was reached by former President George W. Bush, but with President Obama planning to visit South Korea for a summit meeting of the Group of 20 major economies in November, he has now committed to resolving the outstanding issues and submitting the treaty for ratification after the fall elections.
This is good news, to be sure. But it is hardly enough at a time when protectionism is rising around the world.
Until now, the Obama administration’s trade strategy has been limited to hoping that a world economic rebound and a rising Chinese currency would double American exports in five years. Beyond this new enthusiasm, Mr. Obama’s approach to trade still appears to be hamstrung by strong opposition from his party’s union base.
The United States must become a leading voice for open international trade. It must press harder for the completion of the stalled round of global trade talks started nine years ago in Doha, Qatar, and to undo the myriad protectionist measures that governments around the globe — including our own — have adopted since the financial crash.
Politicians aren’t even giving lip service to free trade. In Toronto, the G-20 leaders dropped their 2009 pledge to finalize the Doha round of trade negotiations this year.
Those may be better than no trade deals. But without a strong set of agreed international rules — the sort that come with a global accord — there is a real danger that these side deals could create more mistrust and unfair competition. The sudden hurry for a South Korean deal is being driven in good part by the fact that the United States is losing South Korean market share and both the European Union and Canada are looking to sign their own agreements with Seoul.
South Korea is an important ally in a dangerous neighborhood, and the White House should push hard to get this deal finished and through the Senate. It should push just as hard for ratification of pending agreements with Colombia and Panama. But it can’t stop there. It must also push for more open global trade bound by multilateral rules and obligations. The world’s economy, and the American economy, are too fragile to risk a trade war.
This article has been revised to reflect the following correction:
Correction: July 8, 2010