Prof. Nouriel Roubini |
By Kim Tae-gyu
Staff Reporter
A renowned economist who predicted the ongoing financial crisis has urged U.S. President-elect Barack Obama to refrain from a protectionist approach.
In his latest newsletter briefing (distributed Nov. 5), Nouriel Roubini warned the United States against a rush to slap duties or erect non-tariff barriers that will prevent the world’s biggest economy from gaining from trade pacts.
As an economics professor at New York University with the moniker ``prophet of doom,’’ Roubini has recently been in the limelight by predicting a global financial collapse.
``U.S. insistence on non-tariff barriers to protect some sectors and jobs from import competition might isolate it from trade deals and possible gains from multilateral trade talks,’’ the 50-year-old said.
Roubini’s remarks draw attention to Obama’s stance toward trade pacts, such as the free trade agreement (FTA) with Korea.
Speculation has swirled that the Obama administration would ask for revision of the FTA, which was agreed on in April 2007 but has yet to win approval of either countries’ parliaments.
In particular, Obama has taken issue with the automobile and steel segments, in which the trade imbalance between the two countries is great.
For example, Korea ships more than half a million cars to the U.S. annually, while importing less than 10,000.
Roubini does not specify the Korea-U.S. FTA in his newsletter but claims the Democrat-controlled U.S. Congress is responsible for worsening Obama’s protectionist approach.
``Even as the global recession is increasing risk of slowdown in global trade and possible rise in protectionism, this might be exacerbated by a Democratic Congress that favors conditional trade agreement,’’ Roubini said.
``The current financial crisis might also increase Congress’ aversion to financial globalization and inward foreign investment,’’ he said.
Korean experts say Roubini’s remarks can be interpreted as a warning against ill-fated protectionism, which curbs free trade and win-win cooperation.
``To us, efforts to overhaul the already-signed FTA sound like veiled protectionism,’’ said Kim Young-il, a researcher at the state-backed Korea Development Institute.
``The U.S. tries to protect industries which have a comparative disadvantage, like steel. Such attempts are against free trade,’’ he said.
Kim raised concerns that Obama may be forced to revise the FTA due to unionists in the automobile or steel industries, who supported the Illinois senator in the presidential election.
voc200@koreatimes.co.kr
|
무디스, 스페인·伊·포르투갈 신용등급 강등
