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September 27, 2004 Election is taking odd turn on tariffs
John Chase Chicago Tribune Republican Alan Keyes says if he were elected to the U.S. Senate, he would push hard for the implementation of tariffs on imports, while his Democratic opponent, Barack Obama, says such a plan could spark a trade war that would hurt Illinois. The difference of opinion is just one of several between Obama and Keyes on U.S. trade policy and is in some ways surprising, with the conservative Republican advocating a position that runs counter to his party and more in line with stands advocated by some on the left. The positions of the candidates were derived from answers to a Tribune questionnaire as well as public statements the two have made and comments in interviews. Despite their differences on tariffs, trade is an issue on which the two candidates find some common ground. Both support the importation of cheaper prescription drugs from Canada and Europe, feel the North American Free Trade Agreement has not lived up to its billing and agree that U.S. sugar import quotas and subsidies should be eliminated. Still, Illinois voters are dealing with rivals who come from the opposite ends of the American political spectrum, and agreement only goes so far. The tariff issue is a vivid illustration. "I am willing to go to the U.S. Senate and say the word that has been treated like a curse word Although not detailing which imported goods on which he would want to impose such fees, Keyes said placing tariffs on "cheap, often low-quality imported goods from low-wage countries," would stem the flow of foreign products that he thinks have put American companies out of business. Keyes said he would like to see the tariffs put into place while the United States negotiates better trade agreements. Obama agrees that new trade agreements need to be brokered; though he said those new agreements should promote basic worker rights and environmental protections. But he said he fears that when the U.S. government imposes tariffs, "it invites other countries to reciprocate." "As an exporting state, Illinois would be hurt by a trade war sparked by tariffs," Obama said. "This would be particularly devastating to our agricultural economy." In calling for tariffs, Keyes also said the United States should no longer seek out multinational free-trade agreements, like NAFTA, and instead individually negotiate trade agreements with other nations. He also raised questions about the U.S. government's continued involvement with the World Trade Organization. Keyes originally opposed America's entry into the WTO because he believes negotiating trade accords on a global level doesn't work as well as cutting deals one-on-one. Still, he said in his questionnaire that he believes it would be a mistake for the U.S. to pull out of the WTO because it would create uncertainty that would hurt both U.S. economic interests and the global economy. Obama, on the other hand, said the WTO offers a good forum for ensuring that the policies of America's trading partners are fair and that future agreements address issues such as child labor and worker rights. But both candidates acknowledge that agreements like NAFTA have not been as successful as hoped. Obama said, if elected, he would press for NAFTA's renegotiation because the current deal contains inadequate labor and environmental standards. "As part of any current or future trade agreement negotiations, our nation must address the dislocations caused by expanded global trade," Obama said, "by maintaining workers' basic benefits and helping them retrain and by providing communities hit with plant closings with tools and strategies to remain viable." Keyes agrees, saying that when NAFTA was passed it was based on the premise that Americans would only lose low-wage jobs and that as a result "we would gain high-tech, knowledge-based jobs as our economy continued to evolve from a production-based economy to a service-based economy." "One problem is that we have seen those knowledge-based jobs In their questionnaires, both Obama and Keyes said they support agriculture policies to assist family farmers. Keyes said he also backs subsidies for exploring alternative fuel sources such as ethanol. Obama did not comment directly on ethanol subsidies, though as a state senator he has supported tax breaks for ethanol production. But Obama said tax dollars going to "large, corporate farmers" must be trimmed from the federal budget. While seeking the Republican presidential nomination in 1996, Keyes advocated abolishing the U.S. Department of Agriculture. But during his current run for Senate, he has explained that his idea eight years ago was an effort to make cuts on a bloated bureaucracy that he now believes has been improved under President Bush. The two candidates agreed that U.S. sugar subsidies and limits by the government on imports of foreign sugar should end. The restrictions have also been criticized because they benefit only a few sugar growers in America, most in the key political battleground state of Florida. Both Keyes and Obama agree that importation of prescription drugs from Canada and Europe is a good way to try to force down the price of medicine in America. Obama said any legislation authorizing importation must take into account safeguards, including validation that the drugs were manufactured in an FDA-inspected facility and that drugs are properly tracked. Keyes, meanwhile, said that in addition to legalizing prescription drug imports, he also believes the U.S. government must remove regulations on pharmaceutical makers to held them better conduct research and development of new drugs. Copyright © 2004, Chicago Tribune |
