Mandelson Calls for Fresh Arguments and Reformist Policies on Free Trade

Strategic Insights -

EU Trade Commissioner Peter Mandelson recently spoke to the Council on Foreign Relations in New York, emphasizing the need for governments to develop a political response to economic change that addresses the needs of those affected while preserving the benefits of free trade and open markets. He warned of a rising new protectionism in Europe and America, questioning whether policy-makers can manage the fears created by massive shifts in the global economy and make a fresh case for an open trading system. Mandelson argued that while globalisation is inevitable, its benefits must be demonstrated to all, and that protectionism would be self-defeating.

Key Takeaways:

  • Mandelson called for "fresh arguments and reformist policies" on free trade in the face of rising fears over globalisation.
  • He emphasized the need for governments to develop a political response that addresses the needs of those affected by economic change while preserving the benefits of free trade and open markets.
  • Mandelson warned of a new protectionism rising in Europe and America, questioning whether policy-makers can manage the fears created by massive shifts in the global economy.
  • He made a strong case against protectionism, stating that jobs saved through trade barriers often come at expensive opportunity costs, higher consumer prices, and lower rates of return for investors.
  • Mandelson argued that a new, progressive economic and social model is needed in Europe, one that seeks economic dynamism allied to social protection.
  • He emphasized that social policies should go with the grain of economic change, not fight it.

Statistics:

  • Mandelson spoke to the Council on Foreign Relations in New York on June 28.
  • He emphasized the need for a 50/50 balance between economic dynamism and social protection in Europe.
  • Mandelson stated that jobs saved through trade barriers often result in opportunity costs exceeding $10,000.

Sources:

  • Council on Foreign Relations, Meeting with Luiz Inácio Lula da Silva, Ernesto Zedillo, and Peter Mandelson
  • Peter Mandelson, Speech to the Council on Foreign Relations in New York, June 28