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With protectionist policies gaining dangerous traction everywhere, the global economy needs a strong champion of free trade. After neglecting the issue, President Obama has now committed to winning approval of a free-trade pact with South Korea that was signed by the Bush administration in 2007 but never voted on in Congress because of staunch Democratic opposition.
The White House is hoping to renegotiate several aspects in time for Mr. Obama’s trip to Seoul this week, with a goal of presenting a new deal to Congress early next year. The president must not stop there. Trade deals with Colombia and Panama have also languished without Congressional action. And he must press to revive stalled global trade negotiations.
All three bilateral agreements would bolster relations with important allies. And American exporters should be concerned that while Washington dawdles, other countries are going ahead with their own trade deals. South Korea and the European Union have an agreement, as do Colombia and Canada.
Getting these trade deals through Congress won’t be easy, although Mr. Obama may find new allies in the Republican-controlled House. American trade unions, an important Democratic constituency, are decidedly unenthusiastic. When it comes to South Korea, American carmakers and ranchers are demanding that the White House win broader market access for them.
The South Korean government has its own political problems. In 2008, huge street protests against imports of American beef nearly toppled the government. Mr. Obama should still press — within reason.
Seoul can certainly commit to more transparency in setting pollution and fuel economy rules — allowing American automakers to have a voice in the process. It needs to specify how it will bring its sanitary regulations on imported beef into line with international norms.
Mr. Obama also needs to make clear to lawmakers, especially those in his own party, that this agreement is essential to cementing relations with a strategic partner and one of Asia’s most dynamic economies. Automakers and beef producers could lose a lot if this deal goes sour.
The symbolic value of these agreements is also important. Global trade is recovering from its 2009 collapse. And so far there have been no full-out trade wars. But protectionism — trade barriers, but mostly high and unfair export subsidies — is on the rise. In Washington, members of Congress are itching to punish China for its currency manipulation. A weakening dollar is sparking protectionist sentiment in many other countries.
The United States, which once carried the mantle for open trade, not only needs to avoid trade brawls. It also must stand up to protectionist pressures around the world and make the case that for the world economy to recover, it needs an open trading system.
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