SINGAPORE, April 29—Here in one of the world’s great international trading cities, watching CNN’s breathless coverage of the change that President Barack Obama has brought to America could be likened to eating a meal without the main course. Yes, there is a changed diplomatic tone in Washington (if no results yet) and a new economic environment associated with the president’s economic stimulus package (again, with no results yet), And there are promises of major changes to come, ranging from a dazzling array of big-ticket issues like health care, energy, climate change, and so on. But the main course, the one topic of real importance to any major trading crossroads like Singapore, involves international trade. On this, the television pundits have said almost nothing about where Obama is heading. Yet, the one question I’ve been asked the most since arriving here earlier this week is: What sort of change does Obama have in mind regarding his administration’s international trade agenda? And also this: What priority does the man who was elected promising that his administration would set policies based on the national interest, and not the narrower agendas of Washington’s famous protectionist lobbies, give to international trade?
Nobody knows the answers. Three months-and-counting into his term, nobody yet knows what Obama’s trade priorities really are, or where his administration is headed on trade. On one hand, the president and his top trade negotiator, Ron Kirk, seem to have begun to move away from some of the more embarrassing Obama protectionist campaign promises aimed at restricting trade flows, the most (in)famous of which was to threaten to abrogate NAFTA if the Canadians and Mexicans wouldn’t re-negotiate it to protect American jobs. But at the same time, others close to the administration, such as the red-hot protectionist Democrat from Ohio, Sen. Sherrod Brown, say they have come away from talks with the White House on the same subject, believing that the president is really on their side.
So does Leo Gerard, the president of the United Steelworkers. Gerard, who worked overtime to put Obama in the White House, has reason to think that he put the president in his pocket during the 2008 presidential campaign. Specifically, Gerard extracted a written promise that Obama, once in the White House, would be sympathetic to working with the steelworkers to roll back trade with China. And on April 20, Gerard and his Washington trade lawyer, Terrence Stewart, formally informed the president that they thought it was payback time. Now, one way or the other, the president will have to act. Either he will jump to the tune of the steel lobby, or he won’t. Specifically, the president will have to tell the world whether he is prepared to try to drive up the prices that American consumers pay for the tires they buy for their automobiles — and if he is prepared to slap on quotas to cap the amount of tires that Americans will be allowed to import from China.
Here’s what’s been going on, and what to watch for: