Congress is threatening to set off a devastating chain-reaction of trade
protectionism by pushing ahead with a bill to sharply limit foreign steel
shipments into the United States, Treasury Secretary Robert
Rubin warned Wednesday. Delivering what is expected to be one of his last speeches as a member of
President Clinton's Cabinet,
Rubin said he was worried about demands for the erection of trade barriers in the
United States and a retreat from further integrating the United States into the
global economy.
"In our country, some argue that we should turn inward and retreat from the
world,"
Rubin said in a speech to the
Bretton Woods Committee, a group that supports international lending agencies such as the
World Bank.
"I believe ... just the opposite - that we turn inward at our peril."
Rubin said he was particularly concerned by a House-passed measure that would impose
quotas on shipments of foreign steel into the United States. U.S. steel
companies argue that without increased protection from cheap imported steel,
they will be forced to lay off thousands of American workers.
Rubin and others in the administration contend that the bill is clearly in violation
of global trading rules administered by the World Trade Organization and would
trigger copycat protectionist moves by other countries against American
exporters...
In his speech,
Rubin said
"that bill could well pass the Senate, and such action in the strongest major
economy in the world creates a real
risk of strengthening the already increased protectionist pressure being felt
around the world." ...
Responding to
Rubin, Sen. Mike DeWine, R-Ohio, one of the supporters of the steel quota measure,
said,
"Free trade does not mean free to subsidize, free to dump or free to distort the
market. Ohio Valley steel has suffered long enough from dumping. Senate action
is long overdue..."
Rubin's comments marked the second effort by a top economic policy-maker to blunt
rising protectionist pressures spawned by a U.S. trade deficit that has soared
to record levels because of the global currency crisis.
Federal Reserve Chairman Alan Greenspan has warned in two major speeches in
recent weeks that increased
protectionism threatens the prosperity Americans are now enjoying.
Echoing Greenspan's comments,
Rubin said,
"We must broaden understanding of our stake in the global economy. That
understanding is not broadly shared among the American people and ... the
voices of those advocating that we turn inward are growing more numerous and
getting stronger." ...
[WEBNOTE] See also:
05/04/94
THE RISE OF SOVEREIGNTY FEARS
06/13/99
THIRD PILLAR OF THE NEW WORLD ORDER
06/03/99
TRADE WAR TALKS START SKIRMISH IN U.S.