After all, at least is what sustains this argument, why should American taxpayers pay for steel from Canada when U.S. automakers are struggling?. It is said that economists and political leaders States U.S., European and other countries worry that this simple logic is arousing protectionist instincts around the world, putting in jeopardy the principles of free trade that are essential for global economic recovery. This is an additional problem to add to the drop in trading volume due to lower consumer demand and credit problems caused by the financial crisis. At about the prof.
Jeremy J. Siegel. He noted that protectionism is more of a threat, not a fact, though it is a growing threat that must be taken very seriously. “In fact, so far protectionist sentiment is much weaker than expected at first, and that is something that pleases me,” said the teacher “Everyone has in mind the Great Depression and huge tariff levels For its part, the director general Pascal Lamy called on the infamous Smoot-Hawley Act of 1930, which raised tariffs on over 20,000 products imported by the United States. This law sparked a trade war that, according to many economists, worsened the Depression.
“Whether with tariffs or other more sophisticated ones, now run the risk of rushing to the tricky task of measures and countermeasures.” Add Universia Wharthon, in the United States in the House of Representatives, the Democrats wrote strong provisions “to purchase U.S. products” in its economic stimulus bill, but the terms were softened in the Senate at the request of the Obama administration. The final bill requires use iron, steel and manufactured products in projects funded by U.S. stimulus plan. Exceptions are allowed for “the public interest” or if the use of American materials increases project costs by 25% or more. And what is more important, the law finally passed, unlike the version of the House of Representatives, states that the U.S. must continue to fulfill its international trade agreements. This calmed many advocates of free groups trade, as the Chamber of Commerce, which had lobbied hard against the measures proposed by the House. It also states that many experts believe that additional stimuli are needed worry that protectionist sentiment grows, even though the Obama administration has taken positions strongly advocates free trade. Meanwhile, in the rest of the world are showing some protectionist impulses. France and Italy, as the United States have adopted measures to help its automakers. In the UK, some measures to protect employment are considered potentially protectionist, and many countries have criticized China for keeping its currency artificially low to encourage exports Finally, many experts worry about the return of protectionism, but many note that when other factors do much more damage to international trade. According to World Bank predictions, trade will fall this year for the first time since World War II World and many Ports are registering double-digit declines. Finally the paper concludes that Wharton Universia in the opinion of Prof. Meyer, the threat of protectionism is just one of the ingredients of the combination of challenges facing the global economy. “When you pronounce the word protectionism, I say: Wait a moment, there are many other things are also slowing global trade Source: Code Red Universia Knowledge Wharton (Bulletin February 25-March 10, 2009)