President Obama's decision to "make his stand in the current fight for trade negotiating power" on Friday at Nike's Oregon HQ "came as a shock to labor activists, and a surprise even to some in his own administration," according to Baker & Hirschfield Davis of the N.Y. TIMES. While Nike was "once seen by many as the embodiment of all that was wrong with globalization," the company maintains that it has "reformed its practices and become a showcase of the advantages of opening global markets." Still, its HQ represents "ground zero in the American war over free trade." But as Obama "negotiates a 12-nation Pacific free-trade pact that would be the largest in more than two decades, the president wants to transform Nike from an argument against lowering trade barriers into an argument for it." Several hundred protesters, "some with signs like 'No Fast Track to Hell,'" greeted Obama at a fundraiser in Portland on Thursday night and "others plan to protest outside Nike’s headquarters on Friday." Nike has "been close at times with the Obama administration." Nike CEO Mark Parker in '13 appeared with First Lady Michelle Obama "to announce that the company was committing" $50M over five years to "promote physical fitness in collaboration with her 'Let’s Move' initiative" (N.Y. TIMES, 5/8). Parker: “There’s a ripple effect, too, off of the 10,000 jobs. We expect that that will actually create more like 40,000 jobs when you look at suppliers, other manufacturers who will be involved, partners, engineers, construction jobs -- so we think this footprint will actually grow to a much larger number" (“Squawk on the Street,” CNBC, 5/7).
LOOKING TO THE FUTURE: In Portland, Allan Brettman notes Nike announced in advance of Obama's visit that it would "pour more money into advanced footwear manufacturing in the United States if the Trans-Pacific Partnership free trade agreement is approved." The company on Friday said that its advanced manufacturing model "would create up to 10,000 manufacturing and engineering jobs in addition to thousands of construction jobs and up to 40,000 indirect supply chain and service jobs" in the U.S. over the next decade. Now, nearly all of Nike's footwear and apparel production "occurs in factories around the globe that have production contracts with the company." But Nike said that an approved and ratified TPP "could alter that production model" (OREGONLIVE.com, 5/8). White House Deputy Press Secretary Eric Schultz when asked Thursday if Nike would make an announcement Friday as part of Obama's speech, said, "I'm going to let Nike share their news when they're available to do so." In Portland, Matthew Kish noted Schultz "sidestepped" a question about whether Nike is privy to details about the trade deal, which "has largely been negotiated in private" (BIZJOURNALS.com, 5/7).
