Thompson, Republicans Back Free Trade With Caveats in Debate

Oct. 9 (Bloomberg) -- Republican presidential hopeful Fred Thompson, in his first candidate debate, and the party's other top contenders said the country benefits from free trade as long as agreements protect national security and U.S. manufacturers.

``Free and fair trade has been good for America, responsible for millions of jobs in this country,'' Thompson said today during a nine-candidate forum on economic issues in Dearborn, Michigan, sponsored by the Wall Street Journal, CNBC and MSNBC. ``We cannot turn our back on that.''

The candidates generally agreed with President George W. Bush's support for open market agreements with other countries even as Americans fret about the effects on jobs. In a Sept. 28- 30 Journal/NBC poll, 59 percent of Republican voters said trade has been bad for the economy; 32 percent said it's been good.

Former New York Mayor Rudy Giuliani, the front-runner in Republican polls nationally, said security considerations need to enter into trade accords and deals involving other countries, such as the agreement by a Dubai company to buy a 20 percent stake in Nasdaq Stock Market Inc. Even so, Giuliani said, ``We cannot stop doing business with the rest of the world.''

Former Massachusetts Governor Mitt Romney said trade deals help the economy and just need to be better negotiated to ensure that U.S. technology is not stolen ``and that America gets the best shake in these agreements.'' Arizona Senator John McCain warned of a ``heavy price'' if the U.S. moves toward protectionism.

Spending

Thompson, 65, an actor and former Tennessee senator, earlier said he saw no immediate threat of a recession even as he criticized federal spending under Bush.

``We are spending money we do not have,'' Thompson said without mentioning the president by name. ``We are on a mandatory spending lockdown that is pushing us in a direction that is unsustainable.''

The debate is a significant test for Thompson, who formally entered the race last month. He is aiming to overcome a month on the campaign trail marked by several stumbles, including referring to Russia as the Soviet Union.

While he places second in most national polls behind Giuliani, 63, Thompson hasn't had to take on his rivals directly until today. He spent recent days reading policy briefings and mock debating with former New York Senator Alfonse D'Amato, who played the role of Giuliani.

Conservative Wing

Thompson is aiming to win over the conservative wing of the Republican Party, and his campaign sent out an e-mail to supporters today saying they would see his ``small-town values'' during the debate.

``Fred will look presidential and be substantive,'' said campaign manager William Lacy.

The most heated exchange of the debate came as Giuliani and Romney, 60, competed to burnish their fiscal conservative credentials, each saying he was the was the better candidate for reining in spending and cutting taxes.

``I brought taxes down by 17 percent,'' Giuliani said of his tenure in New York. ``I led; he lagged.''

Romney responded, ``It's baloney. I did not increase taxes in Massachusetts, I lowered taxes.'' He also said he used the line-item veto to keep Massachusetts budgets in check. Giuliani challenged the constitutionality of the federal line-item veto while Democrat Bill Clinton was president.

Laugh Line

The backdrop for the debate was Michigan's unemployment rate of 7.4 percent, the highest in the nation. Romney addressed that and also had one of the biggest laugh lines when he said the state's economic problems stem partly from higher taxes and Democratic Governor Jennifer Granholm's policies.

``I was frankly, a little nervous about being here tonight,'' Romney said. ``I figured she was going to put a tax on the debate before we got finished.''

The other Republicans taking part in the forum are former Arkansas Governor Mike Huckabee, Senator Sam Brownback of Kansas and Representatives Ron Paul of Texas, Tom Tancredo of Colorado and Duncan Hunter of California.

Though she wasn't at the Republican debate, New York Senator Hillary Clinton, who leads the Democratic presidential field, was a presence at the event. Giuliani and Romney both brought her up, on national security and the economy. ``I can't wait to debate Hillary Clinton'' on economic issues, Romney said.

The first contest of the nomination race, the Iowa caucuses, is scheduled for January.

Giuliani leads his rivals nationally, according to a Wall Street Journal/NBC poll conducted in late September. Giuliani garnered the support of 30 percent of the Republican voters surveyed, compared with 23 percent for Thompson, 15 percent for McCain and 10 percent for Romney. The survey of 606 voters had a margin of error of plus or minus 4 percentage points.

To contact the reporters on this story: Kristin Jensen in Washington at kjensen@bloomberg.net; Matthew Benjamin in Washington at mbenjamin2@bloomberg.net