TheNew York Timesreported (then it didn't!) that Barack Obama suffered an "embarrassing" set back in South Korea: “For President Obama, the last-minute failure to seal a trade deal with South Korea that would expand American exports of automobiles and beef is an embarrassing setback that deprives him of a foreign policy trophy and demonstrates how the midterm elections may have weakened his position abroad.”
But "embarrassing" and "failure" seem to be the appropriate words, though the New York Times edited out the previous paragraph of their final article: Obama went to South Korea to seal a trade deal, but he couldn't get our ally to budge.
President Obama’s hopes of emerging from his Asia trip with the twin victories of a free trade agreement with South Korea and a unified approach to spurring economic growth around the world ran into resistance on all fronts on Thursday, putting Mr. Obama at odds with his key allies and largest trading partners.
The most concrete trophy expected to emerge from the trip eluded his grasp: a long-delayed free trade agreement with South Korea, first negotiated by the Bush administration and then reopened by Mr. Obama, to have greater protections for American workers.
And as officials frenetically tried to paper over differences among the Group of 20 members with a vaguely worded communiqué to be issued Friday, there was no way to avoid discussion of the fundamental differences of economic strategy. After five largely harmonious meetings in the past two years to deal with the most severe downturn since the Depression, major disputes broke out between Washington and China, Britain, Germany and Brazil.
Each rejected core elements of Mr. Obama’s strategy of stimulating growth before focusing on deficit reduction. Several major nations continued to accuse the Federal Reserve of deliberately devaluing the dollar last week in an effort to put the costs of America’s competitive troubles on trading partners, rather than taking politically tough measures to rein in spending at home.