Obama names Republican to lead US Commerce Department (Roundup)

By Chris Cermak Feb 3, 2009, 16:19 GMT

Washington - US President Barack Obama on Tuesday chose Republican Senator Judd Gregg to be his commerce secretary, filling the last top economic position in his cabinet.

Gregg, 61, would be the third member of the opposition Republican Party in Obama's administration, behind Defence Secretary Robert Gates and Transportation Secretary Ray LaHood.

Obama said Gregg would be a 'trusted voice' in his administration who was a 'master of reaching across the aisle to get things done.'

As head of the Commerce Department, Gregg will be tasked with increasing trade within the United States and managing free-trade agreements and economic relations with other countries.

Gregg will be 'an able and persuasive ambassador for industry who makes it known to the world that America is open for business,' Obama said at the White House.

But the nomination comes amid some possible protectionist measures in the United States. The Senate is debating a more than 800-billion- dollar economic stimulus package, which contains provisions that would exclude foreign goods from being used in new government projects.

The US Chamber of Commerce has warned the 'buy American' provisions in the bill could spark retaliatory measures against US exports. The European Union has said it 'will not ignore' such a move by the United States.

US politicians have said the provisions are necessary to ensure the package stimulates the US economy and does not filter out to other nations. Obama's administration has not taken a position.

Obama's first choice to head commerce, New Mexico Governor Bill Richardson, a Democrat, dropped out last month over an investigation into allegations of politicized state government contracting practices.

Gregg, a senator since 1993, has held a variety of Senate committee posts involved in commerce, labour and budgetary issues.

Obama said Gregg 'has seen from all angles what makes our economy work for communities, businesses and families.'

Gregg echoed Obama's call for both Republicans and Democrats to work together to pull the US out of a severe recession. 'This is not a time for partisanship,' Gregg said in accepting the nomination. 'This is a time to govern, and govern well.'

But Gregg, known as a fiscal conservative, voted to abolish the Commerce Department in a 1995 Senate vote and sought to curb its budget on other occasions. On Tuesday he said the department 'has a broad and interesting portfolio.'

The New Hampshire senator's nomination had been in doubt after Republicans raised concerns it could shift the balance of power in the US Senate. But New Hampshire's Democratic Governor John Lynch, who has sole authority to appoint a successor, has promised to choose a Republican politician to replace Gregg.

Democrats currently hold a 58-41 edge in the Senate, which could grow to 59 if an outstanding Senate race in Minnesota goes in their favour. A 60-vote majority prevents the opposition party from using certain procedural measures to stall legislation in the chamber.