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UPDATE 1-US needs new trade policy, but won't retreat- Kirk

Published 03/20/2009, 03:42 PM
Updated 03/20/2009, 03:48 PM

* Kirk takes over as global trade expected to fall

* Broad coalition urges Obama to resist protectionism

* Kirk will work to open markets for U.S. exports - Biden

(Adds letter from business, religious groups)

By Doug Palmer

WASHINGTON, March 20 (Reuters) - The United States will not retreat from the global marketplace but must address the concerns of American workers who believe that trade hurts them, President Barack Obama's chief trade negotiator said at his swearing in ceremony on Friday.

"We have to squarely face this challenge and create a new trade agenda that the public believes works for America's families, is transparent and reflects our basic values," U.S. Trade Representative Ron Kirk said after he was sworn into office by Vice President Joe Biden.

But "the United States will not retreat from the global marketplace nor our special role of leadership in shaping that policy," the former Dallas mayor said.

Kirk, confirmed by the Senate this week, comes into office when global trade is expected to fall for the first time since 1982 because of economic turmoil that has sapped consumer demand.

Meanwhile, a broad coalition of U.S. business, religious and development groups urged Obama and congressional leaders to resist protectionist measures that could be especially harmful to developing countries.

"During this difficult period for economies around the world, it is necessary to recognize that the economic welfare of Americans is inextricably linked with the well-being of men, women, and children across the globe," the Business Roundtable, the U.S. Conference of Catholic Bishops, the Episcopal Church, Oxfam America and other groups said in a letter on Friday.

DOHA ROUND PUSH URGED

They called on the United States to work vigorously for a successful conclusion of the seven-year-old Doha round of world trade talks to help promote growth and development in the world's poorest countries.

Obama and other leaders attending the Group of 20 developed and developing nations summit on April 2 in London should reaffirm "the critical importance of rejecting destructive protectionism," the groups said.

During last year's campaign, Obama tapped into anti-trade sentiment in the United States by promising to seek changes in the North American Free Trade Agreement to strengthen its protections for workers and the environment.

Obama also distanced himself from former President George W. Bush's efforts to finish the Doha round, and opposed trade deals the Bush administration struck with Colombia and South Korea.

Since taking office, Obama has met with leaders of Mexico and Canada and said he wants to modify NAFTA without disrupting trade. His administration also has said it wants to work with Colombia and South Korea to set "benchmarks" for progress toward approving those pacts.

Kirk met with European Trade Commissioner Catherine Ashton during his first full day on the job on Thursday. The two pledged to push for a deal in long-running world trade talks as soon as possible, without setting a hard deadline.

Biden said Kirk would work tenaciously to open markets for U.S. exports and to look out for the interests of American businesses and workers.

"He is a like a bulldog. He doesn't let anything go ... . You give him a mission, he accomplishes it," Biden said.

Kirk understands "there's not a trade-off between supporting free and fair trade and fighting for American workers. Not only can we, we have to do both," Biden said. (Reporting by Doug Palmer; Editing by Xavier Briand)

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