Tearing down barriers through bipartisanship

The transition of power to the Republicans in the House obviously has many implications including cutbacks on government spending and lower taxes.  Another likely policy change that has not seen as much time in the limelight is the U.S.’s trade policy.  With the G-20 summit quickly approaching, the United States is in talks with South Korea over a free trade agreement signed but never approved three years ago that could open up the path for the U.S. beef industry and automakers.   South Korea put heavy restrictions on U.S. beef imports after a season of tumultuous protests from the Korean citizens in 2008, and the Hermit Kingdom has consistently maintained astronomically high barriers for foreign automobiles.  If approved, this FTA would be the largest in over fifteen years with over $68 billion in exports and imports—a definite plus for President Obama, who has made it a “national goal” to double our exports in five years. 

The newly Republican-dominated House will be much more inclined to approve the FTA with South Korea, which many hope will increase the likelihood of approving FTAs with Colombia and Panama which were also signed in 2007 by President Bush.    Aside from increased productivity in the beef and automobile industries, the FTAs would also help create jobs in the trade industry.  In a right-leaning House, there will be support for lower trade barriers (read, TAXES!), as well as a less-imposing presence of organized labor.  Although there are some outspoken Tea Party favorites, like the newly elected Rand Paul, who are strong supporters of free trade agreement, a potential roadblock exists in the Tea Party:   according to a poll conducted in September, 61% of Tea Party supporters felt that trade agreements were a detriment to America.  However, there is confidence from the Republicans in the House over this issue; Representative Kevin Brady (R-TX) of the House Ways and Means Committee said on Oct. 25, “Under a Republican House leadership, if the president is serious about moving forward on trade, he will have a serious partner on Capitol Hill.”

The U.S. has set the G-20 summit next week as a “deadline” for an agreement with South Korea.  This provides the Obama administration a timely opportunity to collaborate with the Republicans in a bipartisan effort in the House—a foreign concept to the President, who was blessed with significant majorities in Congress until now.  

FTAs FTW!  (Free-trade agreements for the win!)