Pressure may be put on emerging economies in future
David Yeo, Straits Times 11 Apr 10;
Boao (Hainan): 'Green' protectionism is a worrying future trend, Senior Minister Goh Chok Tong said yesterday.
Speaking at a panel discussion on trade protectionism on the second day of the Boao Forum for Asia, he said green protectionism - or the erection of trade barriers against economies with inadequate environment-protection policies - might not be discernible now but was likely to emerge in international trade.
'Countries with green technologies producing a certain product may find themselves unable to compete against an emerging economy using old processes to produce the same product cheaper, because (the latter) doesn't have to worry about the environment,' Mr Goh said.
He said the green-technology countries might therefore exert pressure on emerging economies to engage in more environment- friendly production, resulting in green protectionism.
One solution, he said, would be the transfer of green technology from developed to emerging economies.
'The question is, at what price?' said Mr Goh. 'So it (green protectionism) is a critical problem which has got to be discussed in totality.'
The panel discussion came after the official opening ceremony of the annual conference of the Boao forum, which is held on China's Hainan island.
The forum, which was started in 2001, aims to promote regional economic integration. The theme for this year's meeting is green and sustainable economic development in Asia.
Chinese Vice-President Xi Jinping, speaking at the opening ceremony, called on Asian nations to further open up their markets and resist protectionism.
He also urged Asia to step up cooperation in energy conservation and environmental protection, and stressed that China was 'actively and seriously' dealing with climate change.
China aimed to forge a new industrialisation path with Chinese characteristics, Mr Xi said, with emphasis on technology, energy efficiency and low pollution, among other things.
About 1,000 government leaders, businessmen and academics are attending the forum.
The other speakers at yesterday's panel discussion were Danish Prime Minister Lars Loekke Rasmussen, Mitsubishi Corporation chairman Mikio Sasaki and Chinese Vice-Commerce Minister Yi Xiao- zhun.
Mr Yi also expressed concern over protectionism amid the economic recovery. 'We are very much concerned that global demand is still weak, and protectionism is still rising,' he said, according to Reuters.
Mr Goh said the key message from the session was the existence of what he termed 'political protection'.
'If a large number of workers are displaced or unemployed, of course there will be pressure for the government on protectionism,' he said.
'So the key for us, so far as Singapore is concerned, is to... make sure workers have the proper education, the skills, and should they lose their jobs, they are given some kind of safety net and, more importantly, trained and retrained.'
Mr Goh, who met Mr Xi on Friday, will return to Singapore today after visiting Hainan's second-largest city, Sanya.
Read more!
Posts
visitors since Nov 07