Tackling rising protectionism: calling for better coordination
Protectionism and economic nationalism have dominated the policy and public discussion about tackling the economic crisis in the last few weeks – the EMF has played a role in the debate.
On 4 February 2009, EMF General Secretary Peter Scherrer welcomed the news that new US President Barack Obama has committed to avoiding an international trade war on manufactured goods and steel. He called for “a return to the international negotiating table” to find solutions to our common legitimate concerns about trade dumping.
“We must avoid cannibalism between workers” through Buy American-style protectionist policies, Scherrer stated, since these policies could prolong the economic crisis and threaten a downward spiral in social competition between workers.
On the EU level, the EMF has been pushing the same line in regular contacts with key Commission officials. As well as following the development of stimulus policies very closely. The EMF has regularly called for much more coordination between national initiatives and between the national and EU levels, to avoid ‘beggar my neighbour’ policies developing inadvertently. To this end, the news on the 28 February that French bail-out plans for car sector have been modified was met with interest. French authorities have agreed that the €6 billion loan for French car manufacturers Renault and Peugeot-Citroën will not contain conditions regarding either the location of their factories or a preference for French suppliers when making purchases. In particular, the French have agreed to scrap the clause in the plan which required manufacturers not to close production sites in France during the duration of loans.
