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Japanese editorial excerpts -3-+
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Jan. 5_(Kyodo) _ Selected editorial excerpts from the Japanese press:
THE GLOBAL RECESSION (IHT/Asahi as translated from the Japanese-language Asahi Shimbun's editorial published Jan. 3)
This is going to be a hugely challenging year for the world economy. It faces a critical choice: Will it turn its back on globalization and move toward protectionism, or will it reject protectionism and maintain free trade?
The world has been caught up in a full-blown financial crisis since last autumn and is now sinking deeper into synchronized recession. To mitigate the painful effects of the global downturn on their economies, many countries are making moves that smack of protectionism. Symbolizing this trend are responses by key economic powers to the predicament of their domestic auto industries.
But what should be borne in mind is that protecting domestic industries could lead to even more serious problems in the long run.
By providing financial assistance to car manufacturers, governments in effect are offering export subsidies that help bolster the competitiveness of their exports.
But countries targeted in export drives by carmakers that are receiving government support tend to adopt defensive measures, such as subsidies to domestic makers and hikes in car import tariffs.
Such policy actions, coupled with tit-for-tat responses, could eventually escalate into a global wave of protectionism.
The wave of protectionist moves caused all the countries involved to enter a long and damaging recession, ushering in the gloomy era that led to a devastating world war.
There was no winner in the trade war. Nations should not repeat this mistake. They should not allow the world economy to fall into the same abyss by succumbing to the temptation to retreat behind the protective walls of trade barriers.
The leaders of the Group of 20 major countries sent an encouraging signal in their emergency meeting on the financial crisis in November, when they pledged to work out by year-end an outline of a new trade agreement under the Doha Round of global trade talks that are still continuing.
But it will take a lot of time to forge consensus among the 150 or so countries taking part in the Doha Round. It might be a good idea for the government to first try to establish an idealistic model for free trade agreements.
One potential candidate for such a model is the U.S.-proposed free trade zone encompassing the countries of the Asia-Pacific Economic Cooperation forum.
As a first step in such efforts, the Japanese government should start negotiations for participation in the economic partnership agreement envisioned by countries in the region, including the United States, Singapore and New Zealand. (Jan. 5)
Copyright ? 2009 Kyodo News International, Inc.
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