Just days into the New Year and the 2010 election season, one of the most hotly contested races of the cycle, the election to replace outgoing Sen. Roland Burris (D-IL) and inherit President Barack Obama‘s former seat, the leading Democratic candidate is making free trade a major issue in the campaign.

Illinois State Treasurer Alexi Giannoulias last month issued a press release slamming China for its unfair trade practices and vowing to take action against the Asian nation if elected.

“We cannot sit back and allow jobs to become our country’s primary export. We must level the playing field and ensure that all countries are playing by the same international trade rules,” Giannoulias said in a press release.

Illinois, being a Midwestern state located in the Rust Belt, has obviously been hit hard by the negative effects of free trade, and Giannoulias’ likely general election opponent, Rep. Mark Kirk, has a mixed record on trade issues.

“I am a strong supporter of free trade and open markets, and recognize the importance of U.S. companies’ investment overseas,” Kirk wrote in response to a constituent letter expressing concern about the outsourcing of American jobs.

Since entering congress, Kirk has voted in favor of free trade agreements with the Andean nations of South America, Singapore, Oman, Peru, Columbia and Australia. In addition, he supported the Central American Free Trade Agreement and voted against providing displaced workers with Trade Adjustment Assistance. However, Kirk has just a 50 percent overall lifetime score from the free trade-promoting CATO institute on globalization issues.

However, perhaps sensing an opening, Giannoulias pounced in his December press release. In it, he vowed to crack down on Chinese currency manipulation and the theft of intellectual property, tax loopholes that encourage offshoring and illegal Chinese subsidies to failing businesses.

According to Giannoulias, from 2001 to 2006, Chinese imports have eliminated 1.8 million American jobs, nearly 80,000 of which were located in Illinois.

“Reining in America’s $200 billion trade deficit with China and forcing its leaders to play by the rules and abide by fair labor, environmental, safety and health standards will help put an end to the global ‘race to the bottom’ that costs Americans jobs and results in reduced wages here at home,” Giannoulias said

The policy outline is the latest in a series that Giannoulias has dubbed his “Future Works America” plan. Previous policies include providing businesses with job creating tax incentives, a payroll tax holiday for those making up to $75,000 and redirecting a large portion of TARP money toward small business loans.

Giannoulias is not entirely focused on Mexico, however. He also said that he would push for the renegotiation of trade pacts such as the North American Free Trade Agreement, provided that it does not disrupt the flow of oil and natural gas into the U.S. and Canada, and would co-sponsor the TRADE Act.

But, he saved the brunt of his attack for the Chinese, whom he says, through unfair and illegal trade practices, have put American manufacturers at a competitive disadvantage.

“We don’t want a trade war with China. But the Chinese government must end unfair trade practices and learn to compete on a level playing field,” he said. “China plays by its own rules, and only when their abuses are reined in will there be fair trade.”

Print PDF