Obama, free trade and outsourcing

Now that Barack Obama is president-elect, some nations are worried about his policies on foreign economic relations.

Latin nations are worried about Obama's free trade policies, while many Asian nations are more concerned about his views on outsourcing.

Conservative protesters, holding pictures of U.S. President-elect Barack Obama (L) and South Korean President Lee Myung-bak, shout slogans during a rally supporting the U.S.-South Korea free trade agreement (FTA) talks in Seoul November 11, 2008. Obama has said he opposes the free-trade deal with South Korea unless it is renegotiated to grant greater access to the Asian market for U.S. automakers. REUTERS/Jo Yong-Hak (SOUTH KOREA)

However, given the current jittery world economy, it would appear unlikely that Obama would take any moves seen as drastic on either front. Realistically, many American corporations just will not be able to compete if they are forced to manufacture or provide services in the United States. This is a reality facing all developed countries competing in the global market place.

At the same time, Obama has voiced concern about the lack of environmental and labor standards in some countries that want "free trade."

A trade war, of course, would be very detrimental at this time. The start of the Great Depression was characterized by many nations of the world drawing inward to "protect" their economies. This stifiled trade and the flow of capital and resources worsening the situation according to most historians.

One such American policy was the protectionist 1930 Smoot-Hawley Tariff Act that raised import fees on some 20,000 items to record levels.

The new world trade order under President Obama?
Philippine Star, Philippines - Nov 7, 2008
During the campaign, candidate Obama said that he would not encourage US firms that “export jobs”, ie outsourcing by taking away their tax breaks. ..

No Free Pass for Free Trade
Motley Fool - Nov 7, 2008
I'm a strong believer in the benefits of globalization, so I jumped at the opportunity to review President-elect Obama's platform on trade. ...
Capitalist confusionIndiana Daily Student

Obama against outsourcing?
Legal Business Online, Australia - Nov 13, 2008
In-house departments can breathe a sigh of relief as, according to the president of outsourcing trade body Nasscom Ganesh Natarajan, there are no specific ...

Christian Science MonitorLatin jitters over Obama's free-trade policies
Christian Science Monitor, MA - 1 hour ago
Despite concerns among Latin American free-traders, analysts note that Obama is not against the idea. He supported a trade deal with Peru once labor and ...
Trade pact with Colombia would benefit the US Longview Daily News