Presidential Candidate Positions on International Trade

PRESIDENTIAL CANDIDATE POSITIONS ON INTERNATIONAL
TRADE
An editorial by Brian Peck
Co-chair, International Trade Policy- Global Initiatives Council
Lecturer in Law, International Trade Policy, USC Gould School of
Law
economic growth.
With the exception of the issue on the U.S. trade relationship with
China, the presidential election campaign up to this point has been
relatively quiet on international trade which of course, is a critical
component of our local economy and a significant engine for
Both President Barack Obama and Gov. Mitt Romney believe expanding overseas markets for
U.S. goods and services and increasing exports are significant and necessary engines for
creating jobs and economic growth. Given the importance of international trade to both the Los
Angeles region and California, here’s a brief summary of the candidates’ positions on key traderelated
issues:
Bilateral and Regional Free Trade Agreements
Both candidates support the current Trans-Pacific Partnership (TPP) negotiations and exploring
the initiation of new Free Trade Agreements (FTA). President Obama advocated for and won
ratification for the FTAs with South Korea, Colombia and Panama; and is pushing forward the
TPP negotiations, as well as expanding these regional free trade talks to 11 countries: the United
States, Australia, New Zealand, Vietnam, Malaysia, Singapore, Chile, Peru, Brunei, Canada and
Mexico. President Obama has been exploring free trade talks with the 27-nation European Union.
A decision on whether to launch negotiations is expected by the end of the year.
Gov. Romney has stated that he would use trade promotion authority to complete the TPP,
pursue an FTA with the EU, and explore FTAs with other countries including Brazil and India.
Trade Promotion Authority
Gov. Romney has stated that he will seek immediate renewal of TPA in order to facilitate the
negotiation of new FTAs. President Obama has not sought to renew the legislation during his first
term, although Obama administration has said they will seek trade promotion authority "at the
appropriate time."
Trade Enforcement/China
When both candidates talk about enforcement of international trade rules, they usually are
focusing on China. Earlier, this year President Obama created a new trade enforcement unit to
bring together resources within the executive branch to help ensure that China and other
countries comply with international trade rules. In addition, President Obama recently announced
the initiation of a new trade case against China in the World Trade Organization (WTO), focusing
on China’s alleged illegal export subsidies to its auto industry. The Obama administration has
filed nine cases against China in the WTO, in comparison to seven cases under the previous
Bush administration.

Gov. Romney has been very critical of President Obama’s trade policy with China, calling for
much tougher enforcement against China’s unfair trading practices. He has proposed the
following measures: increasing U.S. Customs resources to prevent the illegal entry of goods into
the U.S. market; increasing U.S. Trade Representative resources to pursue and support litigation
against unfair trade practices; using unilateral and multilateral punitive measures to deter unfair
Chinese practices; designating China as a currency manipulator and impose countervailing
duties; and discontinuing U.S. government procurement from China until China commits to the
WTO Government Procurement Agreement.
World Trade Talks
Neither candidate has really discussed the stalled Doha Round WTO talks in the presidential
campaign. Gov. Romney has proposed the creation of the "Reagan Economic Zone," an FTA
among countries willing to open their markets further than required by the WTO. President
Obama’s administration is seeking support from other WTO members to expand the 1996
Information Technology Agreement, which eliminated tariffs on computers and other technology
goods.
In addition, the United States has been exploring the idea of negotiating an international services
trade agreement with about 20 other WTO members. This is an initiative that will likely continue
under either candidate.