U.S. worried about free-trade backlash
AUCKLAND, Sept 11 (Reuters) - U.S. Commerce Secretary William Daley warned on Saturday that a growing U.S. trade deficit was fueling protectionism in America, and urged Asia, Europe and Latin America to boost growth to rein in the trade imbalance.
``Our record-breaking trade deficit is fueling the fires of protectionism at home,' Daley told a business group on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Auckland, New Zealand. ``This has to change.'
Daley urged major U.S. trading partners to boost domestic demand and speed the pace of market reform.
``America cannot fuel global growth forever. We need to be exporting more,' Daley said. ``The rest of the world -- Europe, Latin America, Asia -- all must spur demand, and get their economies growing again. This, more than anything, would prevent a public backlash in America against trade liberalization.'
Many U.S. lawmakers have urged the Clinton administration to clamp down on foreign imports. In response to complaints from U.S. industry groups and their supporters in Congress, the administration has already imposed restrictions on steel, lamb and other imports, drawing fire from European states and APEC members.
``It's pretty obvious that there's been a kind of breakdown in political support for trade,' Daley said.
If protectionism picks up pace, it may be hard for the United States to play a leadership role in the next round of global trade talks, starting in Seattle in November under the auspices of the World Trade Organization.
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