Keeping government out of business and out of people's pockets
The Director-General of Trade, Mr Tony Miller, today (Tuesday) called for objectivity in the debate on international trade and competitiveness,
Addressing a luncheon meeting of the French Business Association, he rejected protectionist calls to link trade and labour standards.
"History has had a hand in shaping the very different approaches to intervention taken by countries of Europe, the United States and the newly emerging and vibrant economies of Asia. Each has something to gain," he said.
"Nobody, least of all those with severe problems of unemployment, should be surprised if developing countries choose not to follow particular models.
"In the debate on these issues it will be important for all to remain objective. It will be important in particular to distinguish between ends on which agreement may be easy, and means on which no one has a monopoly of wisdom."
Mr Miller noted that last year there were calls in both Europe and the US for discussion in the World Trade Organisation (WTO) of a social clause and for the outlawing of "social dumping".
"The argument seems to be that because some of the newly industrialised economies have not seen fit to put in place elaborate, publicly funded health and welfare schemes, their manufacturers are able to undercut Western competitors and therefore threaten jobs in developed countries."
Mr Miller attacked those like Sir James Goldsmith in Europe and Ross Perot in the United States who were attempting to deny the benefits of free trade to developing countries.
"Both blithely ignore two real world facts. First, economic development enlarges the pie for all. Secondly, more than 90 per cent of jobs involve non- traded goods and services. As Newsweek recently put it, a postal clerk in Paris need hardly worry that his job will be taken away by a Chinese peasant," he said.
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