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The impending economic stimulus package comes with several large lollipops for American manufacturers and U.S. unions. The House passed a "Buy America" provision to cover iron and steel, and the Senate is expected to require a "Buy American" provision for all manufactured goods bought with stimulus package funds. These are symbolic mandates, however, with the final decision about the level of protectionism left to President Obama though the presidential power of trade waivers.
There is little doubt that Obama will exempt Canada by waiver. After Canada, Obama has the rest of the world to deal with. And it is the nature of that deal that will be very interesting in this new era of the worker.
The U.S. remains the largest market in the world, and that market will grow with the stimulus billions. All of our allies and most of our enemies could use a piece of this pork pie. But Congress won't share unless the president grants them a waiver. So, what does Obama want? He wants to pay back his supporters in organized labor. He wants to advance trade unionism in the U.S. and beyond.
The record is clear and becoming clearer. In 2005, to gain the support of organized labor, Obama voted against the Central America Free Trade Agreement even though he wrote in his memoir he knew that it was harmless on its face and a long-term benefit to labor.
Ironically, CAFTA Article 16 ...