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#10 - Workers threatened by globalisation need support, not protectionism

The effect of international trade on employment is widely debated. Although the overall effect on economic growth is expected to be positive, some forms of employment may be affected negatively. However, recourse to protectionism “to bring back jobs” is not a solution as the number of jobs put at risk will outnumber those directly protected and cause economic damage. When it comes to international supply chains, there will be a negative impact on downstream and exporting industries. Protectionist policies destroy purchasing power by increasing the price of goods, hitting particulary poorer citizens, who spend a higher proportion of their income on traded goods. Instead, citizens at risk must be confident that their governments will protect and empower them through robust social policies, life-long access to learning and training.

See how the EU supports displaced workers

OECD countries set aside an average of 0.6% of GDP a year for active labour market policies, e.g. job centres, retraining schemes and employment subsidies, to ease the transition to new types of work in a dynamic job market. One instrument designed to deal with adjustment costs is the European Globalisation Adjustment Fund (EGF), established by the European Commission in 2006. The Commission states that since its establishment, EGF co-funded retraining for over 140,000 redundant European workers. The average re-employment rate across 13 cases which have completed the implementation of the EGF programmes was estimated at 56%.

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latest #tradefacts

#10 - Workers threatened by globalisation need support, not protectionism

| recourse to protectionism “to bring back jobs” is not a solution as the number of jobs put at risk will outnumber those directly protected and cause economic damage.

#9 - Trade makes shopping cheaper

| International trade makes both sides of the trade better off: It facilitates economic growth in exporting countries and increases purchasing power on the import side because consumer prices fall.

#8 - Engagement helps making trade more sustainable, not sanctions

| Modern trade agreements increasingly include provisions pertaining to sustainable development, which gives rise to questions about their effective implementation and enforcement.

#7 - TRADE DEFENCE INSTRUMENTS ARE MEANT TO PROTECT THE EU ECONOMY. OFTEN, THEY ACHIEVE THE OPPOSITE.

| Trade defence measures such as antidumping are not well suited to modern international production chains, easily harm the EU economy and consumers.


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