CBI president warns of 'protectionism' danger
Business leaders today voiced deep concern about the dangers of the United States sliding towards protectionism on trade.
Speaking ahead of president George Bush’s controversial visit to the UK, CBI President Sir John Egan complained about a “buy America” drive following the recent controversy over steel tariffs.
Sir John will tell the opening day of the CBI national conference in Birmingham tomorrow that British business supported President Bush’s visit and valued the special relationship between the two countries.
But he will add: “That does not mean we should not press home our concerns, and we are deeply concerned, not as some say that America is trying to dominate the world but rather that it is not interested enough.
“There is a real danger of the country sliding towards isolationism and protectionism.”
Sir John said today that he rejected some of the “fixes” being suggested by US politicians including putting up tariffs and discriminating between domestic and foreign firms.
“In the long run they will damage the US economy and damage the nation’s global reputation.”
He complained that the US government was giving preferential treatment to its own companies bidding for government contracts and said there were now moves by individual states to prefer US-based companies to stop jobs going overseas.
He said the US government’s stance on steel tariffs was not only illegal but also damaged business on both sides of the Atlantic.
“The tariffs may have saved a few steel jobs in Ohio but they have destroyed car worker jobs in Detroit. I urge the president to abandon the tariffs as soon as possible. It is business everywhere that pays the price when politicians engage in trade wars.”
