US Trade Rep: Need To Remove Trade Barriers 'Thoughtfully'

U.S. Trade Representative Ronald Kirk sees an upside to the global economic downturn, saying it offers a vivid demonstration that when trade is disrupted, "it's not pretty."

In remarks to a U.S.-India Business Council meeting Wednesday, Kirk said the recession offers "a unique opportunity" to show the benefits of free trade to skeptics.

Tough economic times mean free-trade advocates need to lend "a much more compassionate ear" to critics of free trade while continuing to extol its benefits, Kirk said. He called for the U.S. to work "thoughtfully" to remove trade barriers and pointed out that 95% of the world's population lives outside the U.S., underscoring the futility of a go-it-alone approach.

Battered U.S. automakers such as General Motors Corp. (GM) sell more cars outside the U.S. than inside it, so "you're not going to bring Detroit back by decoupling from the world," added Kirk, a former mayor of Dallas, Texas.

General Electric Co. (GE) senior counsel Karan Bhatia, who also addressed the group, said GE worries about trade protectionism since more than half its revenues come from outside the U.S. He said GE and other firms "are deeply concerned by the kinds of things we're seeing," including economic stimulus initiatives that favor domestic producers and suppliers.

-By Judith Burns, Dow Jones Newswires; 202-862-6692; [e-mail]