Steel workers in the US are unhappy with cheap imports

US treasury secretary Robert Rubin has warned against the growing protectionist mood in Washington. Proposed curbs on steel imports have already been passed by the US House of Representatives. "That bill could well pass the Senate, and such action in the strongest major economy in the world creates a real risk of strengthening the already increased protectionist pressure being felt around the world," he said.

"It is no exaggeration to say that this could set off a wave of market access restrictions," Mr Rubin said in a speech in Washington on Wednesday. The proposal to limit steel imports was prompted by US steel workers' complaints about cheap imports, mainly from Japan and Brazil. He was "deeply troubled" by calls to restrict foreign goods entering the United States and stressed that open markets are "critical" to maintaining a sound global economy.

The large numbers of jobs created in the US as a result of open markets was in contrast with the less open markets of Europe where unemployment rates reach 12%. The upcoming economic summit of the Group of Seven nations - the US, UK, Canada, France, Germany, Italy and Japan - on June 19, would aim to make progress on overhauling the international financial system. "The imbalances that exist in the global economy are unhealthy," he said.

He will talk with officials from Japan and Europe about ways in which they can increase domestic demand-led growth. "It's certainly not healthy to have the US be the only major part of the global economy with robust domestic demand-led growth," he added. Poorer countries needed encouragement to adopt market-based reforms, said Mr Rubin. Industrial nations needed to curb excessive risk-taking which can induce instability such as that which plagued Asia in the past two years, he said. Robert Rubin announced last month that he is to resign his job at the head of the US treasury after four years. A favourite of Wall Street, he has been credited with being one of the key architects of the US economic strength in recent years.

Friday, May 14, 1999 Published at 19:27 GMT 20:27 UK