Wire Line
NOVEMBER 1999  VOL. 9, NO. 4 
What's Happening With Trade?

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The general assumptions about free trade and its congressional supporters have been completely turned around. For instance, historically trade was about tariffs and quotas, with questions about restricting trade solely based on jobs and prices.

However, now the debate on trade is seen in terms of environment, human rights and labor standards. These issues have resulted in a new type of partisanship in Congress, no longer guaranteeing the pro-free trade majority that used to exist.

Additionally, the most staunchly pro-free trade party used to be the Republicans. Now between a quarter and a third of the party votes against market-opening measures; some because they dislike international bodies (such as the WTO), others because they disapprove of linking trade with environmental regulations.

Labor unions, an historically Democratic constituency, often have been leery of free trade because it opens the way for sales of foreign products in the US, forcing workers here to compete with overseas workers who have lower wages, less stringent workplace safety standards and weaker environmental protections.

Now instead of Republicans, the most solidly free-trading block is the centrist New Democrats. Four-fifths of these members have voted to widen trade. However, the rest of the party still, for the most part, opposes free trade, with only one-fifth voting for "fast track" authority.

So, the historical assumptions about which party can be counted on to support free trade are gone, leaving US businesses affected by international markets to start from scratch on each new trade issue.

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