Readers of this blog know I’m critical of the Obama administration generally on economic matters, nevertheless, as we say from my home state of Arkansas, “even a blind hog can find an acorn every now and again.”  The Democratic party has been generally hostile toward free trade for most of my life, while Republicans are generally supportive–obviously there are exceptions in both directions.*  Nevertheless, in my life presidents of both parties have always been the champion for free trade, able to transcend local politics in support of the broader good.  This happens nationally because interest groups can compete both for an against trade–and as the benefits of trade exceed the costs, there tends to be efficiency in political markets for trade.

Mr. Obama is pushing for Trade Promotion Authority (TPA) from the congress, which means that any trade deal negotiated by the administration only has to survive an up-or-down vote–no amendments can be offered.  This authority traditionally strengthens the negotiating power of the administration as other nations know the deal they cut will be the final deal–yes or no.

There are many reasons to be concerned about extending any additional authorities to this president, given his lack of respect for the rule of law and assertions of power well beyond the law.**  Further, one can decry “why now,” why didn’t the President push for this early on (as Mr. Clinton did with NAFTA, which was part of the reason economic progress accelerated in the 90s)?  And we might suspect that Mr. Obama will strike a lousy deal–we could likely get a much better deal if we waited for a Republican president.  Nevertheless, I’m a proponent of not letting the best be the enemy of the good–no matter which administration leads the trade negotiating process, its going to end up having warts.  But on net it will be positive.  And if Mr. Obama manages to get even this totally wrong, the Congress can reject the whole pact.

Today Mr. Obama is taking the unusual (and controversial) tack of promoting the TPA at Nike, which is a big importer of Asian shoes, and is arguing in support of the trade agreement because of its benefits to consumers!  This is amazing–even Republicans usually stick only to the script of the benefits to exporting industries.  As if the only thing we cared about were jobs.  From an economic point of view, it is precisely those small benefits that we enjoy as consumers that lead to the tremendous social welfare gains of free trade.  Yet most politicians shy away from it.  So kudos to Mr. Obama!  May he enjoy his acorn, and may he find a few more before the end of his term.

* EDIT, but just to add, politics does go in circles.  Roles were reversed in the late 1800s/early 1900s, with Democrats favoring trade and Republicans opposed.

** The Obama Administration continues to be #1 in 9-0 smackdowns by the U.S. Supreme Court for overreach.  As an example, yet another rebuke happened just last week, where the EEOC tried to assert its judicial dispute resolution process could not be reviewed by the courts.