Mandelson writes on free trade, targets Sarkozy

The UK Telegraph site carries this article by Peter Mandelson, EU Trade Commissioner, on the importance of free trade and the need for a successful conclusion to the WTO Doha Round, amongst other things Mandelson writes:-

open markets and economic integration are still by far the best tool we have for increasing global economic welfare, including our own prosperity at home.

This is where leadership comes in. The right response from Europe’s leaders is a coherent strategy based on adaptation and reform. We must use the apparatus of the modern welfare state to give people the skills to adapt to change. We must invest in innovation, research and, above all, education.

And we cannot promote competitiveness in Europe if we shut out the stimulus of competition from abroad.

This may not be an easy pill to swallow, particularly in difficult economic times. We have means to protect ourselves from unfair trade – and we should do so. But keeping trade flowing is the condition for fighting the ills that plague us.

If a more open trade regime is agreed as a result of the Doha round, world economic activity will increase significantly. Whether that is measured in tens or hundreds of billions of euros a year will depend on the nature of the final outcome of those negotiations. But whatever the figure, it is hugely positive – and it is not growth that the world economy can afford to throw away.

Elsewhere at the Telegraph is an article suggesting that this article by Mandelson will not be viewed favourably by French President Sarkozy, who is an arch protectionist in many respects. Sarkozy and Mandelson are in the middle of a highly public tussle over the Doha negotiations. Although no great fan of Mandelson, in this instance Adam is hoping Mandelson gets his way.