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UPDATE 1-Trade deals must protect workers, environment-Obama

Published 12/19/2008, 05:06 PM
Updated 12/19/2008, 05:10 PM

(Adds quotes, background)

By Doug Palmer

WASHINGTON, Dec 19 (Reuters) - The United States will insist on strong protections for workers and the environment in future trade deals, President-elect Barack Obama said on Friday as he introduced his nominee to be chief U.S. trade negotiator.

Former Dallas Mayor Ron Kirk "will help make sure that any agreement I sign as president protects the rights of all workers, promotes the interests of all Americans, strengthens American businesses, and preserves the planet we all share," Obama said at a news conference in Chicago.

The focus on what Kirk described as a "values-driven" trade agenda is a nod to labor groups who helped elect Obama and have fought many losing battles against trade deals that they believe encourage U.S. companies to move jobs overseas.

Obama has promised one of his first acts as president would be to call the president of Mexico and prime minister of Canada to begin negotiations to "fix NAFTA" by adding stronger labor and environmental provisions.

But Obama's stance could complicate efforts to complete the seven-year-old Doha round of world trade talks if it means the United States will be adding new demands to those already difficult negotiations.

Many developing countries are suspicious of efforts to include binding labor and environmental provisions in trade pacts because they believe they could be used by rich countries as an excuse to block imports.

Kirk said "a values-driven agenda that stays true to our commitment to America's workers and environmental sustainability is not only consistent with a pro-trade agenda, but it's also necessary for its success."

Although Kirk is little known in global trade circles, Obama said the 54-year-old lawyer's experience as a big city mayor from 1994 to 2001 prepared him to be U.S. trade representative.

"Ron helped steer one of the largest economies. He's seen the promise of trade, but also its pitfalls, and he knows there is nothing inconsistent about standing up for free trade and standing up for American workers," Obama said.

Still, a top Republican senator said he was waiting for a clear sign that efforts to expand trade would be a top economic priority for Obama.

"A very good first step would be confirming that the U.S. trade representative will have rank as a member of his Cabinet," Grassley said.

A leading U.S. critic of trade agreements said Kirk should focus on domestic measures to address concerns about trade, instead of rushing abroad to strike new deals.

"Kirk's first challenge will be negotiating at home to create a new American trade and globalization policy that benefits more Americans," said Lori Wallach, director of Public Citizen's Global Trade Watch.

In addition to his plan to amend NAFTA, Obama opposes a free trade deal the Bush administration negotiated with Colombia on grounds that the staunch U.S. ally has not done enough to reduce murders of trade unionists.

He also wants to renegotiate a Bush administration trade deal with South Korea. Obama has said the pact would open the U.S. market to more South Korean cars without sufficiently opening that country's market to more U.S. auto exports.

The United States will insist on "reciprocity in all of our trade agreements," Obama said on Friday, without mentioning any particular agreement by name.

"If we are trading with a country and they are sending their goods into the United States, we better be able to sell American goods in their country as well," Obama said.

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