While last night’s debate was focused on the domestic economy, there was a bit more discussion of foreign policy than in the previous debate (i.e. none). So let’s see what the candidates had to see! Once again, I’ll be working off of the Washington Post‘s transcript.
I’ll ignore the snarky back-and-forth about defense spending because there was no substantive content there, which means that the first real discussion of foreign policy concerned trade policy and the recently completed TPP:
BAKER: …Mr. Trump, can I ask you about…
BAKER: …the U.S. just concluded an international trade agreement with 11 countries in the Pacific. You’ve said that you’d rather have no deal…
BAKER: …than sign the one that’s on the table…
TRUMP: …It’s a horrible deal…
BAKER: …Most economists — most economists say that trade is boosted growth, and every single post war president has supported the expansion of international trade, including the last three republican presidents. Why would you reverse more than 50 years of U.S. trade policy?
TRUMP: The TPP is horrible deal. It is a deal that is going to lead to nothing but trouble. It’s a deal that was designed for China to come in, as they always do, through the back door and totally take advantage of everyone. It’s 5,600 pages long, so complex that nobody’s read it. It’s like Obamacare; nobody ever read it. They passed it; nobody read it. And look at mess we have right now. And it will be repealed.
But this is one of the worst trade deals. And I would, yes, rather not have it. With all of these countries, and all of the bad ones getting advantage and taking advantage of what the good ones would normally get, I’d rather make individual deals with individual countries. We will do much better.
We lose a fortune on trade. The United States loses with everybody. We’re losing now over $500 billion in terms of imbalance with China, $75 billion a year imbalance with Japan. By the way, Mexico, $50 billion a year imbalance.
So I must say, Gerard, I just think it’s a terrible deal. I love trade. I’m a free trader, 100 percent. But we need smart people making the deals, and we don’t have smart people making the deals.
BAKER: The — the deal, as you say, the terms of the deal were published — were published just last week, the details, 5,000 pages of it, and 80 percent of U.S. trade with countries in the Pacific, these countries, these 11 countries, is actually tariff-free, and these — the trade deal only affects the other 20 percent. Which — are there particular parts of the deal that you think were badly negotiated?
TRUMP: Yes. Well, the currency manipulation they don’t discuss in the agreement, which is a disaster. If you look at the way China and India and almost everybody takes advantage of the United States — China in particular, because they’re so good. It’s the number-one abuser of this country. And if you look at the way they take advantage, it’s through currency manipulation. It’s not even discussed in the almost 6,000-page agreement. It’s not even discussed.
BAKER: There was a separate — separate…
TRUMP: And as you understand, I mean, you understand very well from the Wall Street Journal, currency manipulation is the single great weapon people have. They don’t even discuss it in this agreement.
So I say, it’s a very bad deal, should not be approved. If it is approved, it will just be more bad trade deals, more loss of jobs for our country. We are losing jobs like nobody’s ever lost jobs before. I want to bring jobs back into this country.
PAUL: Hey, Gerard, you know, we might want to point out China is not part of this deal.
(UNKNOWN): True. It’s true.
BARTIROMO: That’s right. That’s right.
PAUL: Before we get a little bit off-kilter here…
BAKER: But isn’t that — isn’t that part of the problem? When I say, Senator, that if — if this deal is not ratified by — by the U.S. — by the Senate, then it would actually give China an opportunity to grow its economic leadership, which it’s been seeking to do? And if the U.S. is unable to take part in this trade deal with these countries in Asia, China will take the lead?
PAUL: There is an argument that China doesn’t like the deal, because in us doing the deal, we’ll be trading with their competitors. You’re exactly right. But I think we’ve sort of missed the point a little bit here.
There is an important point, though, about how we discuss these trade treaties that I do agree with Mr. Trump on. We should negotiate from a position of strength. And we also should negotiate using the full force and the constitutional power that was given to us. I think it’s a mistake that we give up power to the presidency on these trade deals. We give up the power to filibuster, and I’m kind of fond of that power.
We give up the power to amend. And I think, really, one of the big problems we have in our country is, over the last century, really, so much power has gravitated to the executive branch. Really, Congress is kind of a bystander. We don’t write the rules. We don’t make the laws. The executive branch does. So even in trade — and I am for trade — I think we should be careful about giving so much power to the presidency.
BAKER: Thank you. Thanks, Senator.