Senator Hillary Clinton's emphasis on "America's middle class under siege" goes hand in hand with retreat from free trade, which will be difficult to link with multilateralism in foreign policy. In turn, Senator Barack Obama has expressed concern about trade agreements that do not include labor and environmental protection. He would amend the North American Free Trade Agreement (NAFTA), whereas Clinton has pledged to renegotiate NAFTA.
Clinton believes that China's economic impact on the US is causing a "slow erosion of our own economic sovereignty". She co-sponsored the Foreign Debt Ceiling Act of 2005, which would compel Congress to impose limits on US foreign debt.
Clinton has urged Chairman of the Federal Reserve, Ben Bernanke, and Secretary of Treasury, Henry Paulson, to "reduce Chinese-owned debts". She would also consult the International Monetary Fund (IMF) to pressure China.
Both Clinton and Obama have adopted an increasingly critical tone on global trade and support legislation that would allow US companies to seek anti-dumping duties on Chinese imports, based on the perceived undervaluation of the Chinese currency.
A Democratic president might work with the Democratic majority of the Congress, led by the Speaker of the House, Nancy Pelosi, a vocal supporter of the "Free Tibet" movement.
Like the Democrats, the leading Republican contenders favor more emphasis on diplomacy and multilateral engagement.
Unlike Democrats, the Republicans support free trade. Senator John McCain is one of the strongest advocates of free trade in Capitol Hill.
McCain argues that the stage for a Pacific-wide effort to liberalize trade will be set by free-trade agreements (FTAs) with Malaysia and Thailand. These FTAs will realize the potential of the new trade agreement with South Korea and institutionalize economic partnerships with India and Indonesia, while building on existing agreements with Australia and Singapore.
