Businessweek reports:
Throughout her two-and-a-half-year tenure as U.S. Trade Representative, Susan C. Schwab absorbed shots from Democrats who believed she spent too much time futilely trying to negotiate new free-trade agreements while not aggressively enforcing existing rules. Under Schwab's watch, efforts to revive a new round of global trade talks failed, free-trade pacts struck with Colombia and South Korea stalled in Congress, and America's trade deficit—especially with China—soared to record heights.
Now Schwab, who is returning to academic life at the University of Maryland, has some advice for the new Obama Administration. In a nutshell: Keep up the momentum on free-trade deals. Pick your fights with Beijing carefully. And spend a lot of time on Capitol Hill to make sure Congress doesn't do anything crazy. Given the growing frustration in Congress as the U.S. slides deeper into recession, she warned that the risk of unwise U.S. moves on trade will grow. "Depending on what policies the Administration takes," Schwab says, "it could get pretty rocky."
As a candidate, Obama criticized the North America Free Trade Agreement and proposed a deal that would have lowered barriers with Colombia. And with public sentiment now strongly against free-trade deals, Obama's transition team has suggested that new treaties won't be a high priority. That would be a big mistake, Schwab warns. "The key question is whether this Administration will have a proactive trade policy that goes beyond an enforcement agenda," she says. "If you don't move ahead with trade liberalization, you are moving backwards."
The reason, she argues, is that dozens of other nations are striking trade agreements among themselves. For example, China, Japan, South Korea, Singapore, and other countries are exploring an Asian free-trade agreement.
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