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Obama yields to protectionist sentiment

13/09/2009

President Obama seems to be siding with protectionist, anti-trade elements in the US. On Friday he approved a S421 petition and imposed a 35% tariff on certain imports of Chinese tyres, reports the Wall Street Journal.

Adam was suspicious during the campaign on Obama and trade, but thinks ke allowed himself to be lulled into thinking that in office Obama would prove to have been indulging in campaign rhetoric.

If this tariff sticks it could open the door for other protectionist measures which could in time affect NZ. The move will in addition encourage protectionists elsewhere for example in France and Germany.

Plus the move will irritate the Chinese. Now is that wise? Given the US need for China to keep holding US $ bonds, plus seeking to get China to sign up to climate change!

Does Obama really know what he is doing ? How is this going to help the Doha Round, which the US and others keep saying they wish to conclude.

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