Clinton Lays Out Red Lines on Trade, Says Obama Should Call Pelosi

BURLINGTON, Iowa — -- After President Obama's trade deal was blocked by House Democrats, the previously silent Hillary Clinton called on the president to reach out to House Minority Leader Nancy Pelosi.

"She's been a great partner both in the majority and the minority for the president," Clinton said at a house party in rural Burlington, Iowa, after voicing support for Pelosi at a large rally in Des Moines earlier on Sunday.

"I hope that the president will reach out to those Democrats like Nancy Pelosi, who have said it doesn't do enough for the American worker," she said.

The "it" in that sentence refers to the Trans-Pacific Partnership, an Asian trade deal that's a major part of Obama's second-term agenda. With Republicans controlling both houses of Congress, it's one big initiative the president has a chance to push through.

Except that Democrats, led by Pelosi, blocked that deal in the House this week, dealing the president a major defeat and sending him back to the drawing board as he tries to work the deal through Congress.

Clinton has resisted taking a firm position on TPP, or the measure the House voted on -- which would give Obama authority to negotiate the deal and send it back to Congress for a vote -- and she said in Burlington that the House's resistance might give Obama a stronger hand to push for a better deal. If the deal gets better, Clinton said, she'll support it.

"If we push it far enough, where it looks like we can do a better job to have more winners than losers, then we should make that judgment" in favor of the trade deal, she said.

But how much "better" does the deal have to get, before Clinton would get on board?

The Democratic frontrunner laid out some red lines as she addressed a small crowd of Democratic supporters Sunday afternoon, in a home whose backyard abuts a corn field.

Her main concern is with TPP's dispute-resolution mechanism. Sen. Elizabeth Warren, D-Mass., has argued against a provision for an international board that would resolve trade disputes. Clinton wants that process opened and modified.

"I don't agree with it," Clinton said. "It not only cannot be behind closed doors, it has to listen to other voices besides corporate interests."

She also said drug companies should have to pay a price for benefits they might reap from the deal.

"I think our drug companies -- if they're going to get what they want, they should give more to America. They should be required to negotiate drug prices in America with Medicare, because one of our big problems right now are [sic] exploding drug prices," Clinton said.

While Clinton voluntarily raised concerns about those policies, she said she won't be taking a firm stand for or against TPP anytime soon. As Clinton has said before, she'll wait to see a final deal before weighing in definitively.