BERLIN, Dec. 13 (Xinhua) -- No global player should have any interest in protectionism, a German expert told Xinhua in a recent exclusive written interview.
In recent years, some advanced industrial countries have increased their protectionist measures. The main reason for this development is the structural change in the industrial nations, said Thiess Petersen, a senior economics expert at the Bertelsmann Foundation.
"Advanced economies focus on the production of goods and services that require a lot of capital and technology. As a result, the demand for labour, especially for low-skilled labour, is declining. By reducing imports through tariffs and non-tariff barriers to trade, industrialized countries are trying to improve the labour market opportunities of these people," Petersen added.
"However, for the economy as a whole, protectionism has a negative impact on gross domestic product and employment," he reiterated.
Petersen pointed out that both, economic theory and economic history, are very clear: the income and employment gains of the protected sectors are not sufficient to compensate for the economic damage to the economy as a whole.
Hence protection is bad for all economies involved," the senior advisor noted.
Petersen advised that advanced industrial countries should not use protectionist measures. The people and regions who suffer income losses as a result of globalisation and structural change should be supported differently.
Meanwhile, if trade disputes cannot be reduced, Europe should promote the economic integration of the European Union, according to him.
"I think the most important reason for the growing protection in Western industrial countries are the negative effects on the labour market, which is causing uncertainty among many citizens, including those with a good education and good labour market prospects. These people must be offered greater security," he continued.
"Hence, a strong safety net is the best tool to foster the support for international trade and to reduce the desire for protectionism," Petersen said.
