Outlook: Beef bust-up
Thursday 29 April 1999
None the less, they can also be very dangerous, as Lord Young of Graffham, a former Trade and Industry Secretary, stressed in suitably apocalyptic terms to the Institute of Directors annual convention yesterday. At a time when Europe and the US are combined in war over Kosovo, it seems a little hard to believe that the present tit-for-tat in trade relations between the two regions is going to end in a 1930s-style depression.
Yet Lord Young is right to remind us that it was a trade battle that tipped recession into depression in the pre-war years. The likelihood of this happening again might seem remote, but we should be careful to heed the warning signs.
With its burgeoning trade deficit, the US is in no mood to play softball. Increasingly, US policy makers are looking to destruction of what they see as unfair trade practices and barriers as a way of correcting this imbalance. By the same token, Europe's sluggish domestic economy makes a healthy export performance that much more necessary in staving off growing unemployment.
On both sides there is work to be done in upholding the principles of free trade, but it is impossible not to feel rather more sympathy for the US on these matters right now than Brussels. If it were not for the boom conditions of the US, the world economy would be in much worse shape than it is. At the same time, a trade deficit on this scale is unsustainable in the long term. Europe's stance on bananas and beef is going to end up hurting us all if we are not careful.
- 1 Michael Brown shooting: Police shoot and kill second young black man near Ferguson
- 2 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
- 4 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
- 5 James Foley 'beheading': Met police warn public watching murder video could be criminal offence
James Foley 'beheaded': PM cuts holiday short for emergency meeting on British response to latest Isis atrocity
Michael Brown shooting: Police shoot and kill second young black man near Ferguson
ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
Iraq crisis: Islamic State's message to America - 'We will drown you all in blood'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Ukip MEP calls for reintroduction of death penalty on fiftieth anniversary of last deaths
Russell Brand calls for Israel boycott: Comedian urges big businesses that 'facilitate the oppression of people in Gaza' to pull funding
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
iJobs Money & Business
£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...
£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...
£350 - £365 per day: Orgtel: Manager, SAS, Data Warehouse, Banking, Bristol - ...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Linux, SQL Se...