According to the WSJ, trade pacts with South Korea, Colombia and Panama could be passed by mid-October. These pacts have been a source of political conflict for five years. The main sticking point has been the extension of "Trade Adjusted Assistance" or TAA, a U.S. program which gives extended unemployment benefits to workers displaced by globalization. The article says that the White House and Congress are near an agreement on a scaled-back version of TAA, and the President could send the three trade pacts to Congress early this week.
I believe this is good news for the United States, as well as Korea, Colombia and Panama. Economists agree that free trade is a win-win, that increases overall wealth and prosperity, as each country is able to use its comparative advantage to produce those goods and services that it can make most efficiently, and trade them openly. The article says that this pact could boost U.S. exports by $13 billion annually, with most of the gains ($11 billion) coming from Korea.
For Obama, this one is a no-brainer, and shows that he is serious about sound economic policy. Better late than never, I say. Now it's time for tax simplification....
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| from wsj.com |
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