‘Obamanomics’ could bring on protectionism

The world can expect the US to become more protectionist as one of the three themes expected to feature in “Obamanomics”. And countries may respond with barriers of their own, predicts Chris Kuehl, economic analyst for the 2 300 member US Fabricators & Manufacturers Association, International (FMA). “The notion is that trade is not necessarily a good thing and that the United States has a right to engage in protectionism. This position has provoked some real concerns from trading partners in Europe and Asia and some criticism from the likes of the WTO, IMF and various trade groups,” says Kuehl. “Obama indicated he would look at all the current trade agreements and evaluate them, a statement that creates consternation among supporters of NAFTA and CAFTA, as well as those who seek better relations with Europe in general,” Kuehl says. “The impact on (US) manufacturing will depend largely on where a given company stands. Those getting hammered by overseas competition may see some policies enacted that protect them, but those that have started to discover the joys of export are likely to see some of those markets slam closed,” he warns.