There's little question that the Obama Administration has tacked hard to the right on international economic policy since coming in to office. Its efforts to ram $100 billion for the International Monetary Fund through Congress via the war supplemental without reform language that would stop the IMF from making recessions worse through demands for budget cuts - as the IMF is now doing in Latvia - are just the most recent example.
But if the Wall Street boys thought they were just going to run the table on international economic policy in this administration, they had another think coming.
A U.S. trade accord with Panama, which is opposed by labor unions, won't be submitted to Congress for approval until President Barack Obama offers a new "framework" for trade, an administration official said.
The decision, announced by Assistant U.S. Trade Representative Everett Eissenstat at a Senate Finance Committee hearing today, is a reversal from statements in March that the U.S. wanted to pass the accord soon.
As Bloomberg notes, this announcement followed two key developments: