Daniel J. Ikenson, a trade policy scholar at the Cato Institute, discusses President Obama’s pro-trade agenda and the positive impact it could potentially have on foreign affairs. (1:00)
Larry Summers, Director of the National Economic Council, said that President Obama desires fair trade agreements since current agreements favor the U.S. (0:30).
By Michael Ruhl, University of New Mexico – Talk Radio News Service
“We all have an inherent right to self defense in international waters,” according to Senator Jim Webb (D-VA). This remark came out of a Senate Foreign Relations Committee hearing that saw testimony from Richard Phillips, Captain of the Maersk Alabama. Phillips received international media attention several weeks ago while being held hostage by pirates off of the coast of Somalia.
Both the Senators and the witnesses acknowledged that Piracy off of the coast of Somalia has been on the rise recently. Committee Chairman John Kerry (D-Mass.) said that America’s “ability to project naval power and to help ensure the free passage of goods and humanitarian aid is as important as ever.”
Phillips acknowledged that more needs to be done to secure vessels of the merchant marine, specifically arming the crew.
“In my opinion, arming the crew cannot and should not be viewed as the best or ultimate solution to the problem. At most, arming the crew should only be one component of a comprehensive plan and approach to combat piracy,” he said.
The comprehensive approach the committee discussed could include increased U.S. Navy presence in the most dangerous areas, the creation of a protected corridor that civilian ships can travel within, the rooting out of pirates in their land based sanctuaries and the “hardening” of ships, to make the ships structurally more resistant to pirates. “Hardening” measures include razor wire on railings, fire hoses to repel the pirates, and unbolting ladders that lead onto the boat. Phillips does not believe this will stop the pirates, but rather, that they will find a way to adapt.
Maersk Chaiman John Clancey, also present at the hearing, does not believe that arming the crews is a good idea.
“Our belief is that arming merchant sailors may result in the acquisition of even more lethal weapons and tactics by the pirates, a race that merchant sailors cannot win. In addition, most ports of call will not permit the introduction of forearms into their national waters,” Clancey said.
Clancey also posed that greater liability may be assumed by the companies if sailors are traveling with weapons. Neither Chairman Kerry nor Phillips felt that this argument was strong, because of the intense amount of training that mariners go through already. Kerry, a former member of the U.S. Navy, feels that the benefits outweigh the risks, and that multinational agreements can be reached to work out the issue of bringing weapons into port.
Richard Phillips is scheduled to testify next week before the Senate Armed Services Committee.
Several ambassadors from Latin American Countries held a discussion at the Heritage Foundation to discuss the advancement free trade, liberty and prosperity in the Western hemisphere.
Ambassador Tomas Duenas of Costa Rica spoke about the dramatic positive effect that free trade had had in Central America, and warned of the implications if trade barriers increased. He recounted that the United States instituted policies of protectionism during the Great Depression, which caused other countries to respond with their own protectionist policies and ended up harming the entire world’s economy. “We must work together then to avoid falling into a similar situation,” said Duenas, “in difficult times some groups could find it politically attractive to follow that extremely detrimental path.”
Other ambassadors expanded on the dramatic economic effects that their countries have experienced as a result of more open trade with the United States. Ambassador Federico Humbert of Panama discussed how his country has seen growth for 23 straight quarters, and that 75 percent of Panama’s cargo goes to or from the US.
Ambassador Mariano Fernandez Amunategui of Chile spoke about how his country exported $8.7 billion and imported $7.2 billion worth of goods with the US, making Chile a larger US importer than Russia, Indonesia, Pakistan, Argentina and Turkey.
Mexican Ambassador Arturo Sarukhan spoke about the mutual benefits that have resulted from free trade between Mexico and the United States. “Twenty-five million new jobs have been created in America, in the United States, since NAFTA was approved,” said Sarukhan, “…this is a success story.”
Costa Rican Ambassador Tomas Duenas discuss the needs and benefits for the United States to form a closer relationship with the Western Hemisphere. (1:17)
Mexican Ambassador Arturo Sarukhan speaks about how the United States and Mexico have both benefited from NAFTA. (0:57)
Congressman Lincoln Diaz-Balart (R-Fla.) speaks about the differences between Sen. Barack Obama (D-Ill.) and Sen. John McCain (R-Ariz.) on hispanic issues. Diaz-Balart says that Obama does not support free trade in Columbia and would like to abolish the free trade deal that the United States has with Mexico and Canada. Diaz-Balart also calls Obama’s position on free trade “highly irresponsible.” (0:44)
America’s shifting economic dominance and relations with Asia were discussed by Christopher Padilla, Undersecretary for International Trade at the US Department of Commerce, who spoke to a packed house at the American Enterprise Institute. He stressed the importance of forming free trade agreements with Asian countries, especially Korea and China.
According to Padilla, 60 percent of economic activity in Asian nations occurs within the continent, and the numbers are growing. He warned that continued stalling on the part of congress could result in huge economic losses for the United States.
The Undersecretary believes free trade agreements with nations like Korea are key to the United States’s continued influence in the region. Padilla stated that a hefty portion of the global GDP comes from Asia – nearly 40 percent – and the United States must solidify trade relations to ensure continued trade opportunities and economic superiority. In addition, he stressed the importance of continued dialogue between the East and West to facilitate both economic and international agendas.
Undersecretary of Commerce for International Trade Christopher Padilla says that the United States will cede its economic leadership in Asia if Congress fails to pass the Korea Free Trade Agreement, increasing the likelihood that the United States will be left out of future trade agreements. (0:44)
Presumptive Republican Presidential Nominee Senator John McCain’s presidential campaign held a press conference call to discuss Presumptive Democratic Presidential Nominee Senator Barack Obama’s remarks in Flint, Michigan. Senior economic policy adviser Doug Holtz-Eakin and Republican National Committee (RNC) Victory 2008 Chair Carly Fiorina respond to questions from callers on issues ranging from free trade to the Iraq war to education policies.(21:52)
