Obama's economic view is rejected on world stage
By Sewell Chan, Sheryl Gay Stolberg and David E. Sanger
New York Times
Posted: 11/11/2010 06:15:39 PM PST
SEOUL, South Korea -- President Barack Obama's hopes of emerging from his Asia trip with the twin victories of a free-trade agreement with South Korea and a unified approach to spurring global economic growth ran into resistance on all fronts Thursday, putting Obama at odds with his key allies and largest trading partners.
The most concrete trophy expected to emerge from the trip eluded his grasp: a long-delayed free trade agreement with South Korea, first negotiated by the Bush administration and then reopened by Obama, to have greater protections for U.S. workers.
And as officials frenetically tried to paper over differences among the Group of 20 members with a vaguely worded communique to be issued today, there was no way to avoid discussion of the fundamental differences of economic strategy. After five largely harmonious meetings in the past two years to deal with the most severe downturn since the Great Depression, major disputes broke out between Washington and China, Britain, Germany and Brazil.
Each rejected core elements of Obama's strategy of stimulating growth before focusing on deficit reduction. Several major nations continued to accuse the Federal Reserve of deliberately devaluing the dollar last week in an effort to put the costs of America's competitive troubles on trading partners, rather than taking politically tough measures to rein in spending at home.
The result was that Obama repeatedly found himself on the
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defensive. He and the South Korean president, Lee Myung-bak, had vowed to complete the trade pact by the time they met here; while Obama insisted that it would be resolved "in a matter of weeks," without the pressure of a summit meeting, it was unclear how the hurdles on nontariff barriers to U.S. cars and beef would be resolved.
Obama's meeting with China's president, Hu Jintao, appeared to do little to break down Chinese resistance to accepting even nonbinding numerical targets for limiting China's trade surplus. While Lael Brainard, the undersecretary of the Treasury for international affairs, said that the United States and China "have gotten to a good place" on rebalancing their trade, Chinese officials later archly reminded the Americans that as the issuers of the dollar, the main global reserve currency, they should consider the interests of the "global economy" as well as their own "national circumstances."
