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Obama completes cabinet of 'rivals' line-up

CHICAGO: President-elect Barack Obama signaled a major shift in trade policy and labor relations as he rounded out a cabinet of 'rivals' tasked with implementing an ambitious US economic recovery plan.

Obama, who leaves Saturday for a Christmas holiday in Hawaii, said trade agreements will have to be reciprocal and include "enforceable" environmental and labor standards to prevent a "race to the bottom" and a further loss of US jobs.

"In the global economy we must compete and win if we are going to strengthen the middle class and forge bonds with other nations to contribute to peace and stability around the world," Obama said as he completed his cabinet line-up.

"But I also believe that any trade agreement we sign must be written not just with the interests of big corporations in mind, but with the interests of our whole nation and our workers at heart."

Obama, who takes office on January 20, also named Democratic lawmaker Hilda Solis as labor secretary to stand up for working families, and a former Republican congressman Ray LaHood as transport secretary to rebuild the country's transportation system.

"For the past eight years, the Department of Labor has not lived up to its role either as an advocate for hardworking families or as an arbiter of fairness in relations between labor and management," Obama said.

Putting LaHood in charge of a spending spree on the nation's crumbling infrastructure, Obama vowed he would be part of an administration seeking to "craft a 21st century economic recovery plan, with the goal of creating two and a half million new jobs and strengthening our economy for the future."

The 63-year-old is the second Republican named to Obama's cabinet after Robert Gates, who is staying on as secretary of defense.

"We need to remake our transportation system for the 21st century," Obama said.

"Doing so will not only help us meet our energy challenge by building more efficient cars, buses, and subways or make Americans safer by rebuilding our crumbling roads and bridges, it will create millions of new jobs in the process."

The president-elect also welcomed a 13.4-billion-dollar rescue package put forward by the US government Friday for cash-strapped General Motors and Chrysler.

But he warned the country's ailing automakers not to "squander this chance to reform bad management practices and begin the long-term restructuring that is absolutely necessary to save this critical industry and the millions of American jobs that depend on it."

Obama also said a "bold" stimulus plan was needed to pull the US economy out of recession but would not provide a dollar amount for the package.

Obama has proposed an ambitious stimulus plan to create 2.5 million jobs through massive investments in infrastructure which some estimate could cost up to a trillion dollars.

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