Warning on job worries

May 1 2008 by Iain Laing, The Journal

GORDON Brown yesterday issued a warning that the world must not relapse into trade protectionism in the face of the global economic slowdown.

Addressing the Institute of Directors in London, the Prime Minister said that it was “understandable” that people across America and Europe were worried for their jobs in the face of the challenge from the new economic powers of China and India.

But he warned that it would be counter-productive to try to stem the export of jobs to Asia through the imposition of tariff barriers.

“It is understandable – and this is what we have got to deal with – that in Europe and America worries exist,” he said.

Mr Brown added: “We see in America, particularly, protectionist sentiment growing.

“This raises the question as to whether in response to this more testing global economic outlook the world will relapse into the counter-productive but familiar defensive and negative protectionism.

“Under the illusion that people can stop change, they will deny themselves what are the competitive benefits of globalisation.”

Mr Brown said that agreement on an international trade deal would be an important antidote to protectionist pressures but he warned that time was running out before the US presidential elections.