Democrats Need to Embrace NAFTA

Both Canova and Martinez-Diaz suggest that domestic reforms require additional aid for the losers.

The assistance is supposed to come through the Trade Adjustment Assistance (TAA) program offered by the federal government. Canova says TAA was cut first under Ronald Reagan and remains under funded. Sen. Max Baucus (D., Mont.), chairman of the Senate Finance Committee, wants TAA to be a top priority of any trade agreement:

"This task, and no other, must be our nation's trade policy priority. ... I simply cannot support or consider moving these agreements in the Senate, until we realize the goal of expanded and reauthorized Trade Adjustment Assistance."

Democrats have pushed for innovation in new areas, such as alternative energy, and must continue the focus on jobs for workers. Kevin Baker recently reported on mutual funds and companies that would benefit from the Democrats, stocks like Solar One and Fuel Cell (FCEL Quote).

Clearly, other issues prove important on the NAFTA debate. Diaz-Martinez commented: "NAFTA was an early trade agreement compared with those before Congress now. It lacked many of the environmental and labor enforcement protections." Canova agrees that NAFTA should be reformed to reflect changes in TAA and the other issues, which the Democrats discussed during their debate on Tuesday night.

But Democrats have to careful not to get trapped in a complex debate. They should drop the trade bashing of NAFTA and globalization, moving their focus instead to a simple message of creating jobs for a bright American future. Nuanced opinions cannot defeat a Republican come November.