Paulson repeats world economy strongest he's seen, calls for increased trade
Friday, September 14 2007 @ 01:56 PM ESTContributed by: Don Winner
Treasury Secretary Henry Paulson CHICAGO (Thomson Financial) - Treasury Secretary Henry Paulson today repeated that the world has the strongest economy he's seen in his business lifetime, but warned that this strength can fade if the US and other countries fail to embrace increased trade and investment. 'In order to keep our economy healthy and extend this sixth year of economic expansion, we need to focus on areas that are vital to maintain our economic leadership,' he said after touring a Chicago company that produces and exports weather simulation equipment. 'It is ironic that protectionism is rising at a time when the global economy is so strong.' (more)
Paulson said that while he is 'impatient' with the pace of China's effort to open its market further to US goods and services, legislation that would impose tariffs against imports from China 'isn't the answer'.
'I don't want to start a trade war,' he said. 'Punitive trade legislation could have enormous repercussions, especially when we are working to extend our economic expansion and get through a turbulent time in our markets.'
Several members of Congress have introduced bills that could lead to tariffs against Chinese imports unless China revalues its currency. Many US companies believe the undervalued yuan creates a competitive advantage for China.
Rather than legislation, Paulson called for continued engagement with China on trade in an effort to get China to increase the pace of reforms.
More broadly on trade, Paulson said the US needs to keep expanding its markets through trade with other countries.
'Globalization is here to stay and it is important that we continue to benefit from it rather than retreat into isolationism,' he said.
One way to advance trade would be to have Congress approve pending free trade agreements with four countries.
'The Peru Agreement will be the first Congress considers -- but it shouldn't be the last,' he said. 'Colombia should follow quickly. And then we need to press for Panama and South Korea, too.'
Listing the countries in that order is a sign that the administration still wants to get the Colombia deal approved before moving on to Panama, even though Democrats have said they can approve the Panama deal but oppose the Colombia agreement. Sources have said in recent days that it is unclear whether the administration would relent in the face of this pressure and allow the Panama deal to move forward without first considering Colombia.
Friday, September 14 2007 @ 01:56 PM ESTContributed by: Don Winner
Treasury Secretary Henry Paulson CHICAGO (Thomson Financial) - Treasury Secretary Henry Paulson today repeated that the world has the strongest economy he's seen in his business lifetime, but warned that this strength can fade if the US and other countries fail to embrace increased trade and investment. 'In order to keep our economy healthy and extend this sixth year of economic expansion, we need to focus on areas that are vital to maintain our economic leadership,' he said after touring a Chicago company that produces and exports weather simulation equipment. 'It is ironic that protectionism is rising at a time when the global economy is so strong.' (more)
Paulson said that while he is 'impatient' with the pace of China's effort to open its market further to US goods and services, legislation that would impose tariffs against imports from China 'isn't the answer'.
'I don't want to start a trade war,' he said. 'Punitive trade legislation could have enormous repercussions, especially when we are working to extend our economic expansion and get through a turbulent time in our markets.'
Several members of Congress have introduced bills that could lead to tariffs against Chinese imports unless China revalues its currency. Many US companies believe the undervalued yuan creates a competitive advantage for China.
Rather than legislation, Paulson called for continued engagement with China on trade in an effort to get China to increase the pace of reforms.
More broadly on trade, Paulson said the US needs to keep expanding its markets through trade with other countries.
'Globalization is here to stay and it is important that we continue to benefit from it rather than retreat into isolationism,' he said.
One way to advance trade would be to have Congress approve pending free trade agreements with four countries.
'The Peru Agreement will be the first Congress considers -- but it shouldn't be the last,' he said. 'Colombia should follow quickly. And then we need to press for Panama and South Korea, too.'
Listing the countries in that order is a sign that the administration still wants to get the Colombia deal approved before moving on to Panama, even though Democrats have said they can approve the Panama deal but oppose the Colombia agreement. Sources have said in recent days that it is unclear whether the administration would relent in the face of this pressure and allow the Panama deal to move forward without first considering Colombia.
