Obama Tells Canada He Favors Free Trade

By JENNIFER LOVEN | AP White House Correspondent

OTTAWA – On his maiden voyage outside U.S. borders as president, Barack Obama sought to reassure free-trading Canadians that his country is not cultivating a protectionist streak as its economy tanks and hemorrhages jobs.

“I want to grow trade and not contract it,” Obama declared Thursday during a quick visit to court warmer relations with America’s snowy northern neighbor.

The president stuck to his pledge to eventually seek changes in the 1994 North American Free Trade Agreement to increase enforcement of labor and environmental standards. But he said he intends to do so in a way “that is not disruptive to the extraordinarily important trade relationships that exist between the United States and Canada.”

His host, Canadian Prime Minister Stephen Harper, said he might be willing to negotiate but not by “opening the whole NAFTA and unraveling what is a very complex agreement.” Canada is the United States’ largest trading partner and with $1.5 billion in trade between the two nations, they have the largest trading relationship in the world.

Harper sounded a similar warning on a “Buy American” clause that Congress added to the $787 billion economic stimulus package that Obama signed this week. “We expect the United States to adhere to its international obligations,” Harper said. “I can’t emphasize how important it is that we do that.” …

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G7 Finance Ministers Reject Protectionist Measures

By COLLEEN BARRY and ARIEL DAVID | Associated Press

ROME – The Group of Seven finance ministers pledged Saturday to avoid resorting to protectionism as they try to stimulate their own economies in the face of the world’s worst economic crisis since the 1930s.

The meeting marked the international debut of U.S. Treasury Secretary Timothy Geithner, who assured his counterparts that President Barack Obama’s $787 billion plan to resuscitate the economy, approved Friday, would not violate in any way the United States’ commitment to free trade.

Geithner, who was among friends and colleagues he had worked with from his days at the Federal Bank, appealed to the “common imperative” to sustain open trade.

“These are global challenges and it is imperative that we work together to address them,” Geithner told reporters afterward. “Effective global response will require sustained action by governments working with the international financial institutions.”

The meeting’s host, Italian Finance Minister Giulio Tremonti, affirmed “strong agreement” among the ministers on rejecting protectionism …

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Related News: China Criticizes ‘Buy American’ Provision in U.S. Stimulus Bill

World Economic Crisis is Top Security Threat: U.S.

By Randall Mikkelsen | Reuters

WASHINGTON (Reuters) – The global economic crisis has become the biggest near-term U.S. security concern, sowing instability in a quarter of the world’s countries and threatening destructive trade wars, U.S. intelligence agencies reported on Thursday.

The director of national intelligence’s annual threat assessment also said al Qaeda’s leadership had been weakened over the last year. But security in Afghanistan had deteriorated and Pakistan had to gain control over its border areas before the situation could improve.

“The financial crisis and global recession are likely to produce a wave of economic crises in emerging market nations over the next year,” said the report. A wave of “destructive protectionism” was possible as countries find they cannot export their way out of the slump.

“Time is our greatest threat. The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests,” the report said.

The report represents the findings of all 16 U.S. intelligence agencies and serves as a leading security reference for policymakers and Congress. Besides reviewing adversaries, it also considered this year the security impact of issues including climate change and the economy …

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