| Greenspan warns against protectionalism { November 20 2003 } Original Source Link: (May no longer be active) http://news.bbc.co.uk/1/hi/business/3225038.stmhttp://news.bbc.co.uk/1/hi/business/3225038.stm
Last Updated: Thursday, 20 November, 2003, 19:44 GMT
Greenspan warning on protectionism US Federal Reserve chairman Alan Greenspan has called for action to combat "creeping protectionism" in the United States and other parts of the world. Speaking at a financial conference in Washington Mr Greenspan said it was imperative for the growing threat to be "thwarted and reversed."
The United States is involved in high profile trade battles with the European Union and other countries over steel tariffs that have been ruled unfair by the World Trade Organization (WTO).
Washington has also embarked on a dispute with China over textile imports, and the Commerce Department has said it plans to set quotas limiting growth in Chinese textile imports.
China's commerce minister Ma Xiuhong has said they will retaliate by raising tariffs on some American imports.
Mr Greenspan said: "Some clouds of emerging protectionism have become increasingly visible on today's horizon."
'Fair treatment'
His comments come as the heads of World Bank and IMF call for governments to re-engage on world trade talks.
The two organisations said that expanding trade by collectively reducing barriers is the "single most powerful tool" that countries could use to increase prosperity and reduce poverty.
But Mr Greenspan warned that protectionism was a threat to the international economic recovery fueled by freer global trading.
The EU is set to announce counter-measures against US products in December.
Speaking in London, US President George W Bush said: "We believe strongly in free trade but you want to make sure that free trade is also trade in which all parties are treated fairly."
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