TRADE

McCain on Trade

by Bruce Strokes

Sat. Jul 26, 2008


Specific Policy Positions

Trade agreements
Calls himself an "unashamed and unabashed defender" of the 1993 North American Free Trade Agreement and criticizes Obama's "protectionist NAFTA-bashing." Supports a pending free-trade agreement with Colombia, underscoring that commitment with a trip there in July and a Web-only advertisement touting the deal, in English with Spanish subtitles. Backs the pending South Korea free-trade agreement, citing Seoul's pivotal role as a strategic ally in Northeast Asia and in Iraq. Has voiced support for an eventual free-trade agreement with the European Union. Promises to seek an end to all agricultural tariffs and farm subsidies that are not based on clear need and to "aggressively promote trade liberalization at the World Trade Organization."

China
Says that a robust trading relationship with China, America's fastest- growing export partner, is in the best interest of the United States. To that end, in 2000 he voted in favor of permanent normal trade relations with China, which opened the door for Chinese membership in the World Trade Organization. Argues against focusing too much "in isolation" on the overvalued Chinese currency. Pledges to pressure Beijing on food and product safety, and on intellectual-property protection.

Trade enforcement
Vows to hold "every nation we trade with to the commitments they have made under the agreements we have signed."

Displaced workers
Would deposit a portion of each person's unemployment insurance taxes into a "lost-earnings buffer account" that workers could use to cover expenses when they lose their jobs; traditional unemployment insurance would kick in if the new account was exhausted within 26 weeks. A worker would receive any unspent funds upon retirement. McCain would also give workers access to a flexible training account to provide quick assistance in seeking new skills.

Key Advisers

Uber-policy coordinator Douglas Holtz-Eakin, former director of the Congressional Budget Office, oversees the campaign's international economic message. Advice on trade negotiations, market liberalization, and worker adjustment to globalization comes from Grant Aldonas, President Bush's former undersecretary of Commerce for international trade, who is now the principal managing director of Split Rock International, a consulting and investment advisory firm. Philip Levy, the former senior economist for trade on President Bush's Council of Economic Advisers and now a resident scholar at the American Enterprise Institute, advises on trade and development. Former Rep. Jim Kolbe of Arizona, a driving force behind congressional approval of NAFTA and now a senior trans-Atlantic fellow at the German Marshall Fund of the United States, provides political context.

Record

China currency: On a 2005 procedural vote, the only recent test case of major China-related legislation, voted to kill a proposal by Sen. Charles Schumer, D-N.Y., that would have authorized a tariff on Chinese imports if Beijing failed to sufficiently revalue its currency. In so doing, McCain broke ranks with one of his key Senate supporters, Sen. Lindsey Graham, R-S.C., a co-sponsor of the legislation.

Dominican Republic-Central America-U.S. Free Trade Agreement: Voted for this regional free-trade deal in 2005 and termed himself an "unapologetic supporter." Has called reaching a broader accord to include all countries in the Western Hemisphere a "worthy and necessary goal," and has chided Obama for never visiting Latin America.

Oman and Peru free-trade agreements: Voted for the Oman deal in 2006; expressed support for the Peru deal but missed the vote in 2007.

Displaced workers: In 2004, voted against an amendment to the Trade Adjustment Assistance program that would have extended such aid to service and high-tech workers, increased retraining funds, boosted the health care subsidy, and provided economic assistance to communities that suffer significant trade-related layoffs.

Key Interest Groups

U.S. Chamber of Commerce: Does not endorse candidates. Opposes renegotiating NAFTA and opposes China currency legislation. Leads the business coalitions supporting the Colombia and South Korea free-trade agreements. Supports trade-adjustment assistance and says that extending it to service workers is "worth considering."

National Association of Manufacturers: Does not endorse candidates. Has noted that McCain voted with the NAM position on a range of issues 60 percent of the time over the past decade, and that Obama has done so only 16 percent of the time during his shorter Senate tenure. Argues that more trade is the solution to many of the nation's economic woes, not the problem.