It seems that the Democrat Party suffers from a bad case of amnesia these days. Once a party of international intervention and nation building, its members now call for a hastened withdrawal of American troops from Iraq. Lately, on the domestic front, this forgetfulness can be witnessed by the row between presidential candidates Hillary Clinton and Barack Obama, over their mutual disdain for free trade. Both have proposed to renegotiate NAFTA—the North American Free Trade Agreement—with Canada and Mexico. Both have accused the other of being inadequately critical of the trade deal.
This amusing spectacle also occurred during the presidency of Democrat darling Bill Clinton when NAFTA was signed. In the 1990s, the Democrats modernized their political philosophy to branch out to more middle class voters satisfied with the free market economy. Clinton led this reformation under the branding of “New Democrats,” and the passing of a plethora of other trade deals. In fact, Clinton holds the record for passing the most bi- and multi-lateral free trade deals among all U.S. presidents. This is clearly problematic for Hillary: as then-first lady, she is assumed to have been providing the counsel that led to such decisions. But it is also problematic for Obama and Democrats in general, because it was during Clinton’s terms that the Democrats in congress approved of such bills.
Perhaps more willful ignorance than amnesia, this unilateral proposal to renegotiate a treaty with America’s allies reeks of self-contradiction. In the past eight years, Democrats have hounded President Bush for his UN unilateralism, declaring his Iraq war illegal under international law and his abrasive style damaging for America’s reputation. Yet the international treaties signed with America’s trade partners require principles of legality and cooperative reputation that seem to have flown out the window. If the Democrats have feared America’s image abroad appearing selfish and arrogant, then selfishly and arrogantly ending an agreement because it threatens your interests seems like an odd solution to the problem.
Theoretically speaking, a reformed NAFTA under Obama and Clinton’s currently suggested guidelines would focus on labour and environmental standards. American and Canadian standards are relatively equal and fairly high, so the focus will fall on the poorer Mexico. Both candidates feel America is being “cheated” under this current deal because, in their view of the American economy, unskilled workers are losing jobs to neighbours down south with less stringent work and pay standards. Both would like Mexico to join Canada and the U.S. on an “equal” playing field in a new trade agreement. Essentially, the requirements call for more stringent labour and environmental standards to remove the advantage Mexico has in its trade affairs. It is a form of protectionism that seeks to pacify the competition.
Even if we disregard that net U.S. jobs have increased since NAFTA was signed, these policy suggestions are at best misguided, and at worse, cynical. From a policy perspective, renegotiating NAFTA is clearly a bad idea. The gains, if any, in terms of employment for unskilled American workers are outdone by the increase in the costs of consumer goods. This hurts all Americans, but it afflicts the poor, who spend the greatest share of their income on basics. The only thing “fair” about renegotiating NAFTA would be the equal suffering we would all incur. The jobs that have displaced American workers will be taken away from poorer Mexicans who have lost their cost-effective ability to attract American companies. Liberal concerns of worker exploitation down south sound unimportant when these workers may no longer have a job at all, thanks to a renegotiated NAFTA.
Given how crucial manufacturing bases such as Ohio and Michigan are to swing states, it is hard not to accuse the Democrats of pandering to populist pressures. In their desire to win the election, they have abandoned the government practices they preach, erased from the public consciousness. Democrats have engaged in a blatant act of opportunistic hypocrisy. Most importantly, they have ignored the potential economic and moral costs of a renegotiated NAFTA.
