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Trade: Westerners like the idea but not the practice
By Jim Lobe

WASHINGTON - Most US and Western European citizens strongly back the concept of more international trade, but show a lot less support for specific trade agreements and mechanisms, according to a major new survey on aid and trade by the German Marshall Fund of the United States.

The survey, released Tuesday, which polled opinion in the United States, the United Kingdom, France and Germany, found significant differences on some issues between the US and European respondents.

US citizens, for example, were found to be less supportive of official development assistance (ODA) as a way of fighting global poverty, less supportive of negotiating new trade agreements, and more inclined to support protection for the US cotton industry and patents on life-saving drugs than their European counterparts, according to the survey, which was based on interviews carried out in May with about 1,000 respondents in each country.

But on most issues, Americans appeared more or less in tune with their European cousins, suggesting that, unlike in the foreign-policy area, there appears to be a general consensus on issues of trade and aid in Western countries.

Respondents also seemed to share a common belief that multinational companies benefit significantly more from international trade than small businesses or "ordinary people", although those views were significantly more pronounced in France (where 65% said multinationals were the biggest beneficiaries) than in the UK (43%).

The survey, which comes as Western negotiators are trying hard to get World Trade Organization (WTO) Doha Round negotiations back on track, appears designed in part to determine which messages would be most effective in rallying Western public opinion to provide greater support for new trade deals.

It found overwhelming support in all four countries for appeals based on recognizing public concerns and worries about the negative effects of international trade, as well as extolling its advantages.

"Survey responses suggest that policymakers have an opportunity to broaden support for new trade agreements if they address trade pessimists' concerns regarding workers, the environment, transparency and developing countries," according to a 30-page analysis that accompanied the poll.

"Only if opinion leaders seek substantive rather than superficial solutions to assuage public uncertainty can we move to a real discussion of the future direction of trade policy," it added.

One of the clearest findings of the survey, called "Reconciling Trade and Poverty Reduction", is that the public in both the United States and the European Union likes the idea of "free" or "international" trade more than the specific agreements that underpin it.

Overwhelming majoritiesn ranging from 83% in France to 87% in the UK and the US, said they either "strongly" or "somewhat" favor international trade, although the most intense support was found in Britain, where 49% answered "strongly", compared with only 26% who took that position in France.

On the other hand, respondents had a far more restrained view of "globalization", to which pluralities of 49% in the US and the UK and 42% in France responded favorably. In Germany, a majority of 51% responded unfavorably.

When asked about specific trade agreements, the public was found to be anything but enthusiastic. While in the three European countries the survey found relatively strong support for the idea of "free movement of people, goods and services in the EU's internal market", only one in five respondents in France and Germany, and none in Britain, said they had a favorable opinion of the EU Internal Market.

Similarly, while 43% of US respondents said they had a favorable view of the free movement of people, goods and services among the United States, Canada and Mexico, only 4% said they had a favorable opinion of the North American Free Trade Agreement (NAFTA).

As for the World Trade Organization (WTO), 42% of US respondents assessed it as favorable, compared with 29% who were against it and a comparable percentage who had no opinion. The percentages were much the same in both the UK and Germany, while public opinion in France was decidedly unfavorable.

At the same time, only 54% of US respondents said they wanted to negotiate new trade agreements, while four out of five Europeans said they were keen on the idea.

Just as respondents were more skeptical about specific trade agreements than about the principle of free trade, so they were more opposed to protectionism as a general principle than they were to "protecting" specific industries, especially farming and small businesses.

With the exception of Germany, solid majorities in each country said they were willing to support protectionist measures if European and US farmers were at risk of being driven out of business.

Solid majorities in each country said they believed trade was preferable to aid as an effective tool for reducing poverty in poor countries, but that position was particularly pronounced in the United States, where twice as many respondents (27%) "strongly" opposed aid in principle as in Europe.

At the same time, almost two-thirds of all respondents said poor countries should get special consideration in the negotiation of new trade agreements because of the destructive impact global competition may have on their relatively fragile economies.

Domestically, according to even greater majorities, governments should provide workers who may lose their jobs due to foreign competition more assistance in the form of education, retraining and other support.

To gain more popular support for new trade agreements, proponents - according to the survey - should convey two fundamental messages that large majorities of respondents in all four countries found particularly "convincing".

Four out of five respondents agreed: "International trade contributes to prosperity and should therefore be welcomed, but not at all cost. The US and EU must stand up for labor and human-rights standards and protect jobs, the environment and our children. Otherwise, we'll get a race to the bottom, with jobs being moved to sweatshops in China, workers in developing countries living in abominable conditions, and the loss of our ability to protect against tainted foods. That would be a race without winners, perhaps with the exception of a small group of big businesses."

Three out of four respondents agreed with the second message: "International trade has both positive and negative effects. International trade brings a lot of benefits ... but also causes a lot of disruption in millions of workers' households with people losing their jobs. With the world becoming a smaller and smaller place, we need to make trade work for everyone. For us in [your country], that means we need to invest more in skills and technology so that our economy becomes more flexible and innovative."

The German Marshall Fund of the United States (http://www.gmfus.org), founded in 1972 through a gift from Germany as a permanent memorial to Marshall Plan assistance after World War II, is a US public policy and grant-making institution dedicated to promoting greater cooperation and understanding between the US and Europe.

(Inter Press Service)
 

Jul 15, 2004



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