Obama's Trade Actions Threaten To Further Destabilize Mexico

Once elected, President Obama disavowed the protectionist rhetoric of his campaign. But over the past weeks, the Democratic party's impulse to restrict trade has reasserted itself in menacing ways. The president's trade representative, Ron Kirk, has pooh-poohed span>further trade expansion<.

Now though the protectionism has gone beyond talk. NewMajority’s John Gardner Friday span>reported< that President Obama signed into law a direct violation of US obligations under NAFTA.

A provision in the $410 billion stopgap funding bill that the President signed on Tuesday prevents implementation of a provision in NAFTA that permits properly licensed Mexican trucking companies from operating throughout the United States. Specifically, the bill prevents the U.S. Department of Transportation from continuing a pilot program to begin U.S. compliance with its NAFTA obligation.

This news has received shockingly little attention inside the United States. But it's being noticed north and south of the border - where it is already generating shockwaves. NewMajority recently spoke to a former senior Canadian diplomat about the trade measure. Here's what this former official had to say:

This strikes me as thinking really, really small and contrary to American interests.

First, this is a headache that President Calderón does not need. His grip is precarious and this will only play into the hands of those who think he is an American pawn, unable to uphold Mexican interests, and would like to see him undone. What then?

Second, America is investing millions into the Merida Initiative to fight drug trafficking, but the continuing strategic objective, shared by successive administrations (Democrat or Republican) is to bring Mexico into the open, market economy. Mexico is involved in an existential battle with the cartels and we should be doing all we can to help. The Merida initiative helps tackle the immediate problem with a hand out, but NAFTA, despite its warts, is an effort to give Mexico a hand up.

Third, the pilot trucking certification program does exactly that by raising safety standards around economic interest and providing an incentive for responsibility. One of the gripes of labour is that NAFTA does nothing for the 'working Joe or Jose'. This pilot was doing that.

What incentive now for Mexico to raise its game? Ironically, without this program the trucks and truckers that will inevitably cross the frontier into the US will be considerably less safe than the 103 permitted AND inspected, under the pilot program.

Like it or not, the world looks to America for leadership. Know it or not, America is the inspiration because of their capacity to think big. Or as Churchill observed, "America will always do the right thing, but only after exhausting all other options."

I've no doubt that the American generosity of spirit inevitably will do the right thing by the Mexican truckers. But in this case, America's own national interest dictates that it should do so sooner rather than later.