Laura Tyson vs… John Kerry

Here’s an example of the difficulty in trying to nail down what a Kerry administration’s trade policy would look like. On the one hand, Matthew Yglesias has a good American Prospect piece (expanding on this blog post) on what he learned in Boston about the Kerry economic team. The key part is his recount of what Kerry advisor Laura Tyson said:

After briefly singing the praises of liberalized trade and capital flows, recommending Jagdish Bhagwati’s In Defense of Globalization for those who wanted to know more, and arguing that trade is “necessary, but not sufficient” for global economic development, Tyson acknowledged that her remarks were somewhat at odds with much of what Kerry’s said on the campaign trail. “When people say, ‘well, listen to what the Kerry campaign has said about trade in some of the primaries, we are concerned that Senator Kerry will move the US away from trade integration,'” she said, she tells them to “think about the issue of national campaigns in the US” and to “recognize that what might be said in one primary … is not an indicator of the future.” Tyson further argued that Kerry would be able to liberalize trade more than Bush has, because Kerry would support policies that help compensate the inevitable losers in globalization — a step that will allegedly drain the swamp of anti-trade sentiment. Lest it be thought that Tyson’s commitment to the multilateral process and to continued trade integration leaves plenty of wriggle room to keep the process but add, say, environmental standards into the mix, she explicitly disavowed this option during a later exchange. Adding environmental issues to the WTO’s brief might bog it down and impede progress on further integration.

This is music to my ears — except that I then checked out the Kerry Edwards position paper on trade. On p. 2, I see this nugget of information:

As president, John Kerry will lead with a firm but even hand on trade, and make clear that when the U.S. enters into trade agreements, we will expect our trading partners to live up to their side of the bargain. He will strongly enforce our trade laws and insist that all new free trade agreements include enforceable, internationally recognized labor and environmental provisions in the core of the agreements.

Strictly speaking, the position paper does not conflict with Tyson’s statement — the former refers to “new free trade agreements,” the latter to the WTO. However, Matt’s implication that there’s no wiggle room in a Kerry trade policy to use regulatory standards as a way of blocking trade liberalization is a bit overstated. One final thought — I’d like to see someone ask the Kerry economic team the following question: “It was recently decided to extend the deadline for the Doha round of WTO negotiations to the end of 2005. On p. 9 of your position paper on trade, the following is stated:

As president, John Kerry will order an immediate 120-day review of all existing trade agreements to ensure that our trade partners are living up to their obligations and that trade agreements are being enforced and they are working as anticipated. He will consider necessary steps if they are not. And John Kerry will not sign any new trade agreements until the review is complete.

Does this review apply to Doha as well?”