Senator says U.S. needs "new vision" for trade

By Doug Palmer

WASHINGTON (Reuters) - The United States needs a more muscular and compassionate trade policy that insists other countries play by the rules and increases aid for displaced U.S. workers, a senior U.S. Senate Democrat said on Tuesday.

"Globalization is transforming the world. A new world demands a new vision for trade policy," Senate Finance Committee Chairman Max Baucus said in a speech to the New Democrat Network, a policy group.

The Montana Democrat criticized the Bush administration for spending too much time negotiating commercially small but controversial trade agreements that have "shattered the traditional bipartisan support for trade."

Baucus is a leading spokesman for his party on trade and could play an even more important role on that issue if Democrats win control of the White House in the November 2008 election.

Many Americans also have become disillusioned with the Doha round of world trade talks, which have dragged on for nearly six years "with little vision of how we got here or where we are going," Baucus said.

Congress is moving to strengthen the social safety net for workers who have lost their job because of import competition or companies moving overseas, Baucus said.

The United States also too often fails to vigorously enforce the trade deals it strikes, he said.

"Without enhanced enforcement, our trading partners feel free to fall short on their commitments to keep their markets open," Baucus said.