From Deseret News archives:

Keep economy open, U.S. urged

Former Australian chief says protectionism isn't solution

Published: Wednesday, May 21, 2008 1:06 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
A pair of experts — one from the United States and one from Australia — on Tuesday urged the U.S. to resist the temptation of protectionism as a way to help the troubled U.S. economy.

John Winston Howard, prime minister of Australia from 1996 to 2007, and U.S. Commerce Under Secretary for International Trade Christopher A. Padilla stressed that economic openness is the better path.

"The worst possible thing that America could do or Australia could do or Europe could do at the present time is to turn back in on ourselves and become more protectionist," Howard told a crowd of about 850 people at Zions Bank's seventh annual International Trade and Business Conference.

"The world cries aloud in 2008 for a reaffirmation of the view that protection is something of the past, because if the world goes back into protection, we will aggravate some of the difficulties that are now being faced," Howard said. "That will present very significant challenges and very significant difficulties for all of us."

Padilla, who spoke earlier in the day, said protectionism provides a false sense of security and stems from "a defeatist belief that America cannot compete." The U.S. instead needs to pass more free trade agreements — it has 14 now — forge investment treaties and participate in the World Trade Organization, he said.

Story continues below
"Great nations know what they believe," he said, "and we believe that openness makes America different, dynamic and strong."

Howard's suggestion of maintaining an open U.S. economy was among his four "rules of the road" for Western, developed countries, and he said it could help the U.S. during economically troubled times.

"Whenever the American economy gets into trouble, you can always be certain that it's sufficiently flexible. and relatively speaking, unregulated, so that it can recover from the difficulty and perform its way out of economic challenge and economic adversity very, very rapidly," he said.

The other rules include not resorting to overregulation during adversity, balancing budgets or at least narrowing deficits, and maintaining faith in the capacity of technology and science to solve most problems.

Howard said he is a "passionate believer" in globalization. "I hope that not only here in the United States, but in my own country and in other nations around the world, that the doubters and the naysayers who always arise and always become prominent in a time of some economic adversity do not carry the day in relation to globalization," he said.

Recent comments

Protectionism is mostly a political ploy to garner votes from the...

Dave | May 21, 2008 at 7:39 a.m.

Image

John Winston Howard, a former prime minister of Australia, said on Tuesday at Zions Bank's annual International Trade and Business Conference that he is a "passionate believer" in globalization.

previousnext

Latest comments

Once again we see a young player who signs for guaranteed $ millions and...

Utahns swap clunkers for trucks

Proigram Worked for you, but did not work for me. I would have preferred...

The Obama depression is coming our way. Impeach the fool before he destroys...

Letters: Gale's been taken in

At least you can continue preaching to the choir here at Des News. Never...

Letters: A poisonous potion

My candidate won, YOURS LOST! The American people voted for a President who...

Letters: Liberal rant amusing

this comes across as written by someone who lives their whole life based on...

I'm more worried about who the Jazz will pick with their own lottery pick...

Why would they walk over them? Why didn't they just walk around them?

Letters: Liberal rant amusing

About as funny as eight years with GWB, Cheney, Rove and the boys. Hopefully...

TCU showdown has big implications

I actually think you have the most reasonable argument and prediction on...

Advertisements
Advertisement