Those of us in the trade battle have heard "export and innovate" as a strategy for years.  It got us where we are now.  The snake oil salesmen say nice, incomplete things that distract from the real problem.  Unfair trade practices that cause an unprecedented import surge and unprecedented offshoring of production and wealth.

We all wondered what Obama would do.  It looks like he wants to "export and innovate."  Or just "export."  So he said in the State of the Union address. 

Now Gary Locke, the Commerce Secretary, unveiled the plan.  Its a bad plan.

The administration on Thursday unveiled its new strategy to make good on President Obama’s promise to double American exports in the next five years. The approach included pledges to pursue more trade agreements, increase pressure on trading partners to open markets and the creation of an export promotion cabinet.

How, exactly, do you increase exports to China, Korea, etc. when they manipulate currency making our goods far too expensive?  How, exactly, do U.S. exporters overcome the global 19% tariff - in the form of a VAT?  When do we address the gargantuan subsidies created and hidden by non-market economies, state-managed economies, and even the EU that cause unfair import competition?

Maybe there is a silver lining here.  But I don't see it.

Obama had a chance to create jobs.  He had to reduce the trade deficit to do it.  Stimulate through a stimulus bill, then restructure the economy by remedying the trade imbalance. 

But this action increases the chances he will be a one term president.

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