NEW Trade Briefing Paper

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April 15, 2008
TRADE BRIEFING PAPER

Race to the Bottom? The Presidential Candidates’ Positions on Trade
by Sallie James

In a new Trade Briefing Paper, the Cato Institute's Sallie James examines the voting records and campaign pledges of the presidential candidates and finds that John McCain’s policies on free trade would be most beneficial to the U.S. economy. Based on campaign rhetoric and trade voting records, “voters could expect a President McCain who promotes freer trade and cuts in market-distorting subsides, and a president Clinton or a President Obama who views free trade between voluntary actors as something to be restrained,” writes James.

A faltering economy has made trade policy a salient topic during the 2008 presidential elections. Clinton and Obama especially have exploited news that the economy is slowing, linking it to what they see as faulty policies of the Bush administration, and implying that more government management of trade flows will reverse this trend.

James concludes: “Far from just a rhetorical device, proposals to increase restrictions on trade—or even to suspend further liberalization—are economically worrying. After all, tariffs do not create wealth; they are merely a device for protecting special interests by restricting consumers’ choices.”

The study can be found at http://www.freetrade.org/pubs/briefs/tbp-027es.html.