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Viewing cable 09SAOPAULO125, MEDIA REACTION: GLOBAL ECONOMY: PROTECTIONISM; SAO PAULO

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Reference ID Created Released Classification Origin
09SAOPAULO125 2009-03-05 17:34 2011-07-11 00:00 UNCLASSIFIED Consulate Sao Paulo 
VZCZCXYZ0010
OO RUEHWEB

DE RUEHSO #0125 0641734
ZNR UUUUU ZZH
O 051734Z MAR 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8994
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0149
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9048
 
UNCLAS SAO PAULO 000125 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION: GLOBAL ECONOMY:  PROTECTIONISM; SAO PAULO 
 
Recession and Protectionism: lessons and errors from the past 
 
Op-ed in business oriented Valor Econtmico (3-5) by economist 
Marcelo Piancasteli from the Institute of Applied Economic Research 
(IPEA). Several years ago, on an invitation from the State 
Department, Mr. Piancasteli, on a student program, visited 
Pittsburgh, PA, an area with high concentration of steel mills. On 
this industry, he now states: "The U.S. steel industry has improved, 
but has not turned globally competitive....In the package of 
measures proposed by President Obama's administration to fight 
recession, there is an astute article to limit steel imports, which 
brings back the time old adage of protectionism: protect jobs in 
industries with no conditions to compete in the global market....The 
current  initiative.... this allows us to review past lessons....We 
know today that U.S. protectionism, along with other mistakes in 
monetary policy, only prolonged [1929] recession, which lasted 10 
years and only ended because World War II started." 
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