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Obama taps former governor Locke as commerce chief

Published 02/25/2009, 12:11 PM
Updated 02/25/2009, 12:16 PM
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By Doug Palmer

WASHINGTON, Feb 25 (Reuters) - President Barack Obama on Wednesday nominated former Washington state Governor Gary Locke to be U.S. commerce secretary, turning to a West Coast politician with a history of working with China after his two previous nominees backed out.

"Gary will be a trusted voice in my cabinet, a tireless advocate for our economic competitiveness, and an influential ambassador for American industry who will help us do everything we can - especially now - to promote it around the world," Obama said.

Locke is Obama's third nominee for commerce secretary after both New Mexico Governor Bill Richardson and Senator Judd Gregg accepted the nomination and later withdrew.

"It's not lost on anyone that we have tried this a couple of times. But I'm a big believer at keeping at something until you get it right," Obama said.

Locke was the first Chinese American governor in U.S. history. During his two terms from 1997 through 2004 he led eight trade missions to China and opened a Washington state trade office in Guangzhou.

Although Washington state's exports to China have boomed, the overall U.S. trade deficit with China hit a record $266.3 billion last year and remains a sore spot in relations between the two countries.

Many U.S. politicians -- including Obama himself during last year's election campaign -- have said one big reason for the imbalance is because Beijing manipulates its currency to give its exporters an unfair price advantage.

"Our nation's economic success is tied directly to America continuing to lead in technology and innovation and in exporting those products, services and ideas to markets around the globe," Locke said.

DOHA ROUND

Business groups hope Locke will be a strong advocate for completing the long-running Doha round of world trade talks and moving forward on free trade deals with Colombia, Panama and South Korea that the Bush administration negotiated.

"This is a guy that comes from a state that understands the importance of trade," said Myron Brilliant, senior vice president for international trade at the U.S. Chamber of Commerce.

Washington is home to software giant Microsoft and aircraft manufacturer Boeing's main production facilities, as well as international coffee purveyor Starbucks. The state's wheat and apple farmers also depend on access to overseas markets for a big part of their income.

Locke is a partner in the Seattle office of law firm Davis Wright Termaine, where he has specialized in China, energy and government relations issues. He is also a member of the Committee of 100, a group of Chinese Americans who encourage strong ties between the United States and China.

U.S. labor groups have backed Locke for the commerce job and say they hope he will work within the Obama administration to put pressure on China to improve worker rights. (Additional reporting by Matt Spetalnick, David Alexander and Ross Colvin; Editing by Sandra Maler)

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