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Kuros
Joined: 27 Apr 2004
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 Posted: Sat Nov 22, 2008 1:52 pm Post subject: APEC Leaders vow not to go protectionist for next 12 months |
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From Apec Summit at Lima, Peru
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Leaders from 21 nations that account for half the world's economy pledged Saturday not to implement protectionist measures for the next 12 months � no matter how punishing the global downturn gets.
At the Asia-Pacific Economic Cooperation forum in Peru, the leaders endorsed a declaration made at last weekend's Group of 20 summit in Washington, which brought together the world's richest economies and major developing nations.
"We strongly support the Washington Declaration and will refrain within the next 12 months from raising new barriers to investment or to trade in goods and services (and from) imposing new export restrictions," the APEC leaders said in a joint declaration.
They also pledged to reach agreement next month on the outlines of a World Trade Organization pact that collapsed in July after seven years of negotiations. Kazuo Kodama, a Japanese government spokesman, said concern over the global financial crisis revived willingness to push forward on the so-called Doha round of trade talks.
Leader after leader spoke out against protectionism, saying it would bring devastating consequences.
"Companies will go bankrupt and countless jobs will be lost, and poor nations and poor people will suffer the most damage," South Korean President Lee Myung-bak told business executives.
U.S. President George W. Bush said nations must not respond to the crisis by "imposing regulations that would stifle innovation and choke off growth."
"One of the enduring lessons of the Great Depression is that global protectionism is a path to global economic ruin," he said.
The leaders argued their case with free-trade success stories. Lee, former head of the Hyundai group, said open markets were central to boosting his nation's per-capita annual income from $100 in the 1960s to $20,000 today. Canadian Prime Minister Stephen Harper said the North American Free Trade Agreement has tripled trade and created 40 million jobs. |
This is very encouraging. |
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khyber
Joined: 16 Jan 2003
Location: Compunction Junction
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| Posted: Mon Nov 24, 2008 9:53 am Post subject: |
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| Colour me ignorant but had some sensible international restrictions been placed on the financial sector, wouldn't this worldwide debacle be lessened somewhat? |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Mon Nov 24, 2008 9:58 am Post subject: |
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| khyber wrote: |
| Colour me ignorant but had some sensible international restrictions been placed on the financial sector, wouldn't this worldwide debacle be lessened somewhat? |
Yes, you're correct. China avoided the first AFC and to a large extent has not been touched by this financial crises (though harmed by the economic crises that followed) because China's financial system isn't open. |
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Kuros
Joined: 27 Apr 2004
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| Posted: Mon Nov 24, 2008 12:34 pm Post subject: |
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| khyber wrote: |
| Colour me ignorant but had some sensible international restrictions been placed on the financial sector, wouldn't this worldwide debacle be lessened somewhat? |
Right, and perhaps restrictions should be placed on derivatives trading and leveraging.
But the rest, investment, the flow of goods, services, should not be protected. Trade barriers would be a mistake. |
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khyber
Joined: 16 Jan 2003
Location: Compunction Junction
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| Posted: Mon Nov 24, 2008 2:24 pm Post subject: |
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Right, and perhaps restrictions should be placed on derivatives trading and leveraging.
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I was hesitant to comment because I know almost nothing about finance.
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| But the rest, investment, the flow of goods, services, should not be protected. |
But doesn't protectionism protects jobs? |
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Kuros
Joined: 27 Apr 2004
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| Posted: Mon Nov 24, 2008 2:36 pm Post subject: |
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| khyber wrote: |
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| But the rest, investment, the flow of goods, services, should not be protected. |
But doesn't protectionism protects jobs? |
Caution: Protectionism may cause depression.
Other side-effects include: lack of innovation, stagnation of productivity, each of which may culminate in inability to compete on open markets. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Mon Nov 24, 2008 2:40 pm Post subject: |
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Protectionism can mean many different things. Some good, some bad.
Should Korea accept more American cars or lose special privileges? Yes. Should the United States slap a 30% duty on all inbound cars? No. Etc.
At this point, we need ideas that work. Not ideas that are fun to repeat. |
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