Automotive News has an unlikely report:
The word the UAW chose to describe its reaction to the recent passage of a free-trade agreement between the United States and South Korea last week was “pleased.”
“The UAW is pleased with congressional approval of the U.S.-South Korea Free Trade Agreement,” it said in an official statement.
It’s a striking change of tone for the union, which has historically decried the concept of free-trade agreements, even with Canada, as a sure ticket to lost American jobs. But it is worth arguing that the union’s hearty acceptance of free trade with Korea says less about the UAW and more about the current outlook for U.S. manufacturing.
The United States has become a more competitive source of auto manufacturing than it was in 2007 when the Bush administration negotiated the agreement and the union denounced it.
A lot of market conditions have changed since then. The dollar is weak. Labor rates are lower. Capacity is available. And who would dispute that products are improved? They are better styled, more technically advanced, offer better fuel economy and are more “non-U.S.A.-centric.” That is, there is now a better selection of vehicles you might realistically picture on the roads of France or Germany — or Korea — than ranch-sized pickups and SUVs the size of boats. …
To be blunt, it will still be a fight to sell American vehicles there. But the UAW believes it’s worth a shot to “provide UAW members with the opportunity to make products for export to Asia,” in the words of UAW President Bob King.
Free trade benefits consumers. Free trade also benefits Wisconsin businesses, because Wisconsin businesses are substantial exporters of goods like fire trucks and agricultural equipment. (One of the few pro-business accomplishments of former Gov. James Doyle was promoting exports; Doyle was smart enough to stay away from the Democrats Against Free Trade (DAFT), which included Doyle’s would-be successor. DAFT had a perfect record Nov. 2; every one of them lost.)
Bill Clinton, remember, was the chief cheerleader for the North American Free Trade Agreement, even though more Democrats voted against NAFTA than for NAFTA. President Obama claims to support free trade, but has done little until now to actually work for it. The fact Obama is willing to buck his union supporters who until now have been united in opposing every free trade agreement says volumes about union political power today.
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