Clinton says she'd pull out of NAFTA without changes

At a manufacturing forum in Pittsburgh on Monday, Democratic presidential candidate Sen. Hillary Clinton said if elected president, she would pull the United States out of the North American Free Trade Agreement if it were not amended to better protect American workers.

"As smart as my husband is, he does make mistakes," Clinton told an audience member who questioned what she would do with the trade deal her husband signed when he was president.

Clinton followed her rival for the Democratic nomination, Sen. Barack Obama of Illinois, and a panel of steel industry and union executives. The panel members bemoaned the loss of American manufacturing jobs to China, and the country's dependence on China for parts in the defense industry supply chain.

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"It is way past time for us to just identify the problem, describe it, feel bad about it and wring our hands about it," Clinton said. "It's time to roll up our sleeves and get to work."

Clinton said she has already called for a trade time out, and pledged to re-examine the tax code "line by line" to find and eliminate provisions that offer incentive to companies that outsource jobs to other countries.

She said it was important for the provisions of existing American trade agreements to be enforced. "When other countries violate trade rules, they should be held accountable," Clinton said. "When I'm president, I will make sure American manufacturers get a fair shake again."

Clinton also said she would make sure that any Section 301 petitions would be fully investigated under her administration. Section 301 of the Trade Act of 1974 allows the government to investigate claims of free trade violations. The Bush administration has not taken any action on Section 301 petitions, Clinton said.

She chided Obama for his stance on the matter. "He says he is of two minds," Clinton said. "When you're president, you have to stick to your decisions and be able to make up your mind. If he can't stand up to China over an opening ceremony, how is he going to stand up to them when it comes to trade?"