Yesterday's
Sunday Business Post editorial made a small attempt at sobering up its Irish readers after Tuesday's euphoria.
Whatever about Bush’s discomfort, there are dangers for Ireland in last week’s results. Specifically, there is now a grave danger of an outbreak of economic protectionism in the United States. Many Democrats campaigned with an old-fashioned economic populism that may work well on the stump, but is not a tool for government in the age of globalisation.
One of the Democrats’ champions, Sherrod Brown of Ohio (a key swing state in presidential elections), has even written a book entitled Myths of Free Trade: Why American Trade Policy Has Failed. So the mood in the new Democrat-controlled congress will be worth watching.
This country has reaped enormous benefits from freer global trade (and from the visionary leadership of Bill Clinton in this regard) and from smart domestic taxation policies that have made it very attractive for American firms to do business here.
Free trade and American investment have brought hundreds of thousands of jobs to Ireland, lifted us out of poverty and brought us wealth undreamed of a generation ago. Gratifying and all as it is to see Bush’s nose tweaked, let us hope that the newly-empowered Democrats do not turn their backs on the free trade policies that he inherited and continued.
The
Business Post should take some time to lecture Irish farmers and food processors. From today's
Irish Examiner:
The success of the Democratic Party in taking control of both houses of the US is being seen as good short term news for food processing and farming in Ireland.
It is likely to further delay any world trade agreement which both sectors fear would include radical cuts in farm supports.
Stalled talks on a new agreement were expected to be revived in the aftermath of the US mid-term elections, having collapsed in Geneva last July over the crucial issue of agricultural subsidies.
