Bad Trade-Off

Analysts anticipate that a US Congress controlled by Democrats will scrutinize and even stall free-trade agreements. Under Democrats, Congress will probably not extend the Republican president’s fast-track authority for approving trade agreements, which expires in July 2007. Democrats criticized the Bush administration for allowing manufacturing firms to invest in overseas plants, particularly any type of aeronautical, software or other products that can be categorized as military or security technology. Presidents during the latter half of the 20th century encouraged free trade, and US citizens benefited from a range of foreign investments. But US citizens, wary about a destabilized manufacturing base and a decline in innovation, expect economists to provide solid reasons why free trade and overseas competition are not to blame. – YaleGlobal