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Greenspan: Keep trade free
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April 16, 1999: 3:28 p.m. ET
Fed chief concerned about rising calls from protectionism in Washington
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NEW YORK (CNNfn) - Federal Reserve Chairman Alan Greenspan took aim Friday at rising calls for protectionism and a recent drop in support for free trade among U.S. leaders.
Greenspan, speaking to a gathering of diplomats in Texas, criticized the supposed rationale of protectionism and said there is little proof it works to save U.S. jobs.
"Administrative protection in the form of antidumping suits and countervailing duties is a case in point," Greenspan told the Dallas Ambassadors Forum.
"While these forms of protection have often been imposed under the label of promoting so-called 'fair trade,' oftentimes they are just simple guises for inhibiting competition."
Last month, citing dumping by Asian producers, the House of Representatives sent President Clinton a bill proposal that would slap stiff duties on imports of steel.
"I am concerned about the recent evident weakening of support for free trade," Greenspan said. "Should we endeavor to freeze competitive progress in place, we will almost certainly slow economic growth overall."
Meanwhile, the administration recently has been at loggerheads with the European Union on the import of bananas and beef. Last week, the World Trade Organization ruled in favor of the U.S. on an EU ban on banana imports.
The United States responded to that issue by slapping $900 million in duties on a host of EU goods.
Speaking deep in the heart of U.S. computer country, Texas, home to Compaq Computer (CPQ) and direct-selling rival Dell Computer (DELL), Greenspan praised the nation's high-technology sector and the benefits of the North American Free Trade Agreement for the state. 
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