.Asians uneasy over Obama trade stance
BEIJING (AP) - Asian exporters looked closely Wednesday at Barack Obama's trade stance, worried about the possible impact of his victory on Cambodian textile producers, Indian outsourcing companies and Korean automakers.
"He appears to be a protectionist," said Chea Mony, president of the Free Trade Union of Workers in Cambodia, which has an export-driven textile industry. "I am quite concerned about that because most of our clothing products are exported to America."
Obama has said he is in favor of free trade agreements if they benefit the United States. He has criticized a deal with South Korea that has yet to be ratified, saying it does not adequately address an imbalance in auto trade. South Korean automakers sold 772,482 vehicles in the United States in 2007, while the U.S. sold 6,235 in South Korea, according to industry statistics.
In an Oct. 24 letter to the U.S. National Council of Textile Organizations, Obama pledged "strong enforcement" of trade remedy laws, which can include added tariffs on imports that are deemed to hurt American businesses. Obama said he would include labor and environmental standards in free trade agreements - a measure that many in Asia view as a possible pretext to shield U.S. companies from foreign competition.
Obama also has said he would pressure China to end what he calls the manipulation of its exchange-rate system. Washington and other trading partners say Beijing's currency, the yuan, is kept undervalued, giving its exporters an unfair price advantage and adding to China's multibillion-dollar trade surplus.
Indian outsourcing companies - accused by critics of stealing U.S. jobs - have also expressed some apprehensions about an Obama victory.
"There are some apprehensions about protectionism being on the Democrats' political agenda. We hope that's misplaced and global trade and flows of goods and services will continue," said Saumitra Chaudhury, a member of the Economic Advisory Council of Prime Minister Manmohan Singh and chief economist at the credit rating agency ICRA Ltd., a Moody's affiliate in New Delhi.
Other analysts said that despite Obama's pre-election comments, he was likely to follow the example of previous U.S. presidents and take a moderate line in office to preserve important trade relations with Asia.
"He may have talked tough, but based on past experience, that's just a tool to win over voters," said Qiang Yongchang, a professor at the Economy Institute at Shanghai's Fudan University.
MyWay
And they of all people would know all about that.
"He appears to be a protectionist," said Chea Mony, president of the Free Trade Union of Workers in Cambodia, which has an export-driven textile industry. "I am quite concerned about that because most of our clothing products are exported to America."
Obama has said he is in favor of free trade agreements if they benefit the United States. He has criticized a deal with South Korea that has yet to be ratified, saying it does not adequately address an imbalance in auto trade. South Korean automakers sold 772,482 vehicles in the United States in 2007, while the U.S. sold 6,235 in South Korea, according to industry statistics.
In an Oct. 24 letter to the U.S. National Council of Textile Organizations, Obama pledged "strong enforcement" of trade remedy laws, which can include added tariffs on imports that are deemed to hurt American businesses. Obama said he would include labor and environmental standards in free trade agreements - a measure that many in Asia view as a possible pretext to shield U.S. companies from foreign competition.
Obama also has said he would pressure China to end what he calls the manipulation of its exchange-rate system. Washington and other trading partners say Beijing's currency, the yuan, is kept undervalued, giving its exporters an unfair price advantage and adding to China's multibillion-dollar trade surplus.
Indian outsourcing companies - accused by critics of stealing U.S. jobs - have also expressed some apprehensions about an Obama victory.
"There are some apprehensions about protectionism being on the Democrats' political agenda. We hope that's misplaced and global trade and flows of goods and services will continue," said Saumitra Chaudhury, a member of the Economic Advisory Council of Prime Minister Manmohan Singh and chief economist at the credit rating agency ICRA Ltd., a Moody's affiliate in New Delhi.
Other analysts said that despite Obama's pre-election comments, he was likely to follow the example of previous U.S. presidents and take a moderate line in office to preserve important trade relations with Asia.
"He may have talked tough, but based on past experience, that's just a tool to win over voters," said Qiang Yongchang, a professor at the Economy Institute at Shanghai's Fudan University.
MyWay
And they of all people would know all about that.
posted by madtom at 8:30 PM
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