PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | CLIPS | 1999 | U.S. MAY PUT UP BARRIERS

U.S. may put up barriers, warns business leader David Saunders South China Morning Post Monday, April 12, 1999 The risk that key United States industries may resort to protectionism was increasing as the recession across the Asia-Pacific region dragged on, the head of a leading business lobby group said. The secretary-general of the Honolulu-based Pacific Basin Economic Council, Bob Lees, believes the U.S. may be reaching saturation point in its ability to act as the importer of last resort for economically beleaguered trading nations. "Manufacturing production in the U.S. is down; as that happens, cheaper goods come in from outside, which keeps wages in check," said Mr. Lees, who was visiting Hong Kong. But this was not sustainable and sooner or later U.S. companies would start to make demands on the government to protect U.S. jobs. Quotas in the steel industry, for example, could be implemented if the survival of the domestic industry was threatened. Mr. Lees believed any reversal in the strength of the U.S. dollar could also force a rethink on importation. U.S. consumers have enjoyed cheap imports for some time because of a strong dollar, which puts pressure on the competitiveness of domestic companies. He said in the long run U.S. manufacturers — many of which have steadfastly refused to move their manufacturing basis offshore — may be forced to seek countries with cheap labour to survive.