Don't Blame the Current Economic Conditions: Obama's Softer Position on NAFTA Emerged Almost a Year Ago

As the Democratic primaries reached the nation's Rust Belt, both Hillary Clinton and Barack Obama began making harsh critiques of NAFTA, and they vowed to renegotiate the trade pact, even if this required pulling out of the agreement. Today, however, during a joint-press conference with Canadian Prime Minister Stephen Harper, Obama took a much softer tone regarding NAFTA and stated that he wanted to expand rather than reduce trade activity between the U.S. and Canada.

President Obama attributed his markedly different stance towards NAFTA to the global economic crisis. Specifically, he said that in the wake of the global recession, he needed "to be very careful about any signals of protectionism." He made similar statements earlier this week. Obama's softer stance on NAFTA, however, began as almost a year ago.

Obama's March 2008 NAFTA "Wink"
In March 2008, during the heat of the Democratic candidates' assault on NAFTA, a leaked memorandum of notes describing a meeting between Canadian Consul General Georges Rioux and Obama's economic policy advisor Austan Goolsbee created created a political firestorm. The leaked notes stated that Goolsbee tried to reassure Canadians that Obama's tough position on NAFTA was merely "political positioning" and that he was fully committed to free trade with Canada.

The leak of the memorandum triggered a response from Obama's campaign, which said that the notes distorted discussions between Goolsbee and Rioux. Although Goolsbee denied using the words "political positioning," he did not deny saying something similar.

Full Retreat on NAFTA By June 2008
As soon as Obama obtained the Democratic nomination, his rhetoric on NAFTA dramatically shifted. And just as the leaked memorandum indicated, he began to pull away from the harsh anti-trade rhetoric that defined the Democratic primaries in the Midwest.

During a June 2008 interview with Fortune magazine, for example, Obama said that he would not seek a unilateral renegotiation of NAFTA, even though both he and Clinton had vowed to do so earlier. When asked by Fortune to reconcile his softer position with his forceful campaign rhetoric, Obama stated that "[s]ometimes during campaigns the rhetoric gets overheated and amplified. . . . Politicians are always guilty of that, and I don't exempt myself."

Last Word: I agree that protectionism will not solve the country's economic problems, and it could even exacerbate them. And I never really expected Clinton or Obama to modify substantially the terms of NAFTA. But Obama's current pro-NAFTA position did not recently take hold. Instead, as soon as he secured the Democratic nomination, he began moving to the center on free trade, which confirms the content of the leaked memorandum.

Chill Out, Canada: Despite Tough Campaign Rhetoric Obama Will Not Touch NAFTA

As the Democratic primaries moved through the "Rust Belt," Barack Obama and Hillary Clinton sparred viciously over NAFTA. Clinton made her famous/infamous "shame on you" speech in response to Obama's campaign advertisement, which questionably portrayed Clinton as an avid supporter of NAFTA.

Obama threatened to force the Canadians to renegotiate provisions of the statute -- even if that meant unilaterally pulling out of the agreement. Obama also pushed a strong line that linked Hillary Clinton to the passage of NAFTA. Even though she was First Lady (and not a lawmaker) at the time, Obama portrayed Clinton as a fierce advocate of the legislation.

The situation became most heated when a Canadian official suggested that Obama "winked" at Canadians behind the scenes and tried to reassure them that his NAFTA-bashing rhetoric was simply political grandstanding. Obama responded by saying that the Canadian official grossly misstated the content of his position.

After he secured the Democratic nomination, however, Obama indeed backed away from his hard anti-NAFTA rhetoric. During a June 2008 interview with Fortune, Obama said that he would not unilaterally seek to reopen negotiations concerning NAFTA. Even though he had once described NAFTA as "devastating" and as a "big mistake," he brushed those comments aside as "overheated and amplified" campaigning.

An article appearing in today's New York Times describes Obama's latest statements regarding NAFTA. Obama discussed the importance of Canada as a trading partner during an interview with the Canadian Broadcasting Corp. The interview took place in advance of his scheduled trip to meet with Prime Minister Stephen Harper on Thursday.

The article confirms prior reports which reveal that Obama has substantially backed away from his anti-NAFTA rhetoric and appears unwilling to renegotiate the terms of the agreement. Here's a clip:

''I think there are a lot of sensitivities right now because of the huge decline in world trade,'' Obama said Tuesday when asked whether now was the time to renegotiate NAFTA. He maintained that labor and environmental standards, currently part of side deals, could be better enforced if woven into the main agreement.

''But what I've also said is that Canada is one of our most important trading partners,'' Obama said in an interview with the Canadian Broadcasting Corp. ''We rely on them heavily. There's $1.5 billion worth of trade going back and forth every day between the two countries. . . .It is not in anybody's interest to see that trade diminish.''

The article also discusses the so-called "Buy America" provision in the stimulus package. Apparently this provision lacks teeth because it does not disturb existing statutory requirements, including those created by NAFTA and other free trade agreements.