Just a week ahead of the G20 summit in Pittsburgh, US President Barack Obama has said it is in everyone's interests to avoid protectionism, especially at a time when the world trade is starting to bounce back.
Obama also said he would urge global powers to do more to 'aggressively reform' the financial system.
Interestingly, in May, the US President had given a clarion call to his countrymen to 'say no to Bangalore and yes to Buffalo'.
Obama had also announced the end of years of tax incentives to those US companies which created jobs overseas in places like Bangalore.
Instead, he had said that the incentives would now go to those creating jobs inside the US, in places like the Buffalo city -- bordering Canada in upstate New York.
Obama's pro-protectionism comments had drawn wide-ranging reactions across the world. While some slammed it as a protectionist measure that would hurt the US more than it would harm India, others felt it would not have any effect on the Indian outsourcing industry.
This time The US President is doing a complete volte face by speaking against protectionism.
Ironically, these anti-protectionism comments by Obama came after the US slapped duties on imports of tyres from China over the weekend.
"I think it's in China's interests and our interests and the world's interests to avoid protectionism, particularly just as world trade is starting to bounce back from the huge declines that we had seen last year," he said in course of an interview with CNBC television.
On Friday, Obama had approved the duties on the imports after a labour union blamed these for the loss of thousands of American jobs. Two days later, China, in response, filed a WTO complaint, challenging the higher US tariffs as a violation of free-trade rules.
And there was apprehension in certain quarters that there could be over a trade war between the two.
Obama said he was not surprised that China is upset about it. "But keep in mind, we have a huge economic relationship with China. We have cultivated a strong strategic relationship with China," he said.
Image: US President Barack Obama. | Photograph: Reuters
