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AMID CONCERNS ABOUT OUTSOURCING AND CHINA, AMERICANS AND EUROPEANS DESIRE CLOSER ECONOMIC TIES, SURVEY SAYS

~ Survey reveals diminishing U.S. support for global engagement through trade and aid; Americans and Europeans see outsourcing, immigration, currency manipulation as causes of job loss ~

WASHINGTON, DC (December 5, 2007) –A survey released today by the German Marshall Fund of the United States (GMF) shows that majorities of Americans and Europeans support deepening trade and investment between the European Union and the United States in the face of concerns regarding trade-related job loss, immigration, currency manipulation, and China’s economic rise. Opportunities to wield global regulatory influence, achieve higher productivity, and, to some extent, increased competition from China, are driving American and European support for a stronger transatlantic marketplace. About two-thirds of Americans and Europeans – 64% and 69%, respectively – support a new initiative aimed at deepening transatlantic trade and investment, according to the fourth annual Perspectives on Trade and Poverty Reduction public opinion survey (1).

“The transatlantic economic relationship, the largest bilateral trade and investment relationship in the world, remains a critical anchor for the global economy,” said Craig Kennedy, president of the German Marshall Fund. “After more than five decades of robust trade and investment integration since World War II, Americans and Europeans see even further gains to be made by deepening the transatlantic marketplace.”

A project of GMF’s Economic Policy program, Perspectives on Trade and Poverty Reduction is a survey of transatlantic public opinion on international trade, economic development, and poverty reduction. Conducted in France, Germany, Italy, Poland, Slovakia, the United Kingdom, and the United States, it also explores views on agricultural policies, immigration, and aid to and trade with developing countries.

In fact, majorities in the U.S. and Europe appreciate aid and trade as development tools and believe they can help reduce poverty, build democracy, and enhance global stability. And despite anxieties over outsourcing and China’s economic rise, support for freer trade and other pro-globalization policies remains relatively high in the U.S. and Europe.

2007 SURVEY HIGHLIGHTS

DISSATISFACTION WITH ECONOMY PERSISTS, THOUGH OPTIMISM GROWING IN EUROPE
Majorities of Americans (58%) and Europeans (64%) remain dissatisfied with the direction their country is headed. American dissatisfaction with the economy rose slightly since last year, increasing from 56% to 60%, while European dissatisfaction has dropped from 70% to 64%.

UNCERTAINTY OVER GLOBALIZATION, BUT MOST FAVOR PRO-GLOBALIZATION POLICIES
Support for globalization remains the same over last year with only slight majorities in the United States (52%) and Europe (53%) in favor. Thirty-four percent of Americans and 38% of Europeans view globalization unfavorably. But Americans and Europeans are more certain about policies related to globalization, and majorities see economic and foreign policy benefits from pro-globalization policies. Sixty-four percent of Americans and 75% of Europeans favored international trade, and 60% of Americans and 69% of Europeans support “freer trade” — that is, trade liberalization. Moreover, majorities of Americans and Europeans see freer trade leading to consumer benefits, new export markets, prosperity at home and abroad, and making the world more stable.

MOST FAVOR DEEPENING TRANSATLANTIC TIES AND REGULATORY COOPERATION
Sixty-three percent of Americans and Europeans support deepening trade and investment between the European Union and the United States. When asked about support for a specific “new effort to deepen the economic ties between the EU and the United States by making transatlantic trade and investment easier,” about two-thirds of Americans and Europeans support the idea (64% and 69%, respectively). Italian (78%) and British (74%) respondents were the most enthusiastic about this initiative, while smaller majorities in all other countries also supported it (68% of Polish, 66% of German, 64% of French, and 57% of Slovak respondents, respectively).

DECLINING U.S. GLOBAL ENGAGEMENT
Although majorities are still globally engaged, compared to last year, American support for trade is softening while European support remains relatively stable in most cases. Compared to last year, fewer Americans believe that freer trade leads to shared prosperity (68% in 2006 to 62% in 2007) and global stability (71% to 63%). American views on the foreign policy benefits from freer trade and support for trade and aid as tools for development follow a similar pattern. While majorities in all cases still agree with trade, aid, and the potential benefits they offer, American confidence is dipping across many indicators. Sixty-six percent of Americans support providing development assistance to poor countries, compared to 72% in 2006, while 69% of Americans support promoting international trade with poor countries, compared to 75% last year.

MAJORITIES WANT TO TRADE WITH AND GIVE AID TO DEVELOPING COUNTRIES
Again this year, majorities of Americans (69%) and Europeans (76%) believe in promoting international trade with poor countries. Support for trading with poor countries was extremely high among Italian (92%) and British respondents (81%). At the same time, majorities of Americans (66%) and Europeans (75%) supported providing development assistance to poor countries, with the greatest number of advocates in Italy (93%) and France (85%). Most Americans and Europeans believe trade and aid strengthens democracy in developing countries. Fifty-five percent of Americans and 59% of Europeans believe that freer trade supports democratic institutions in developing countries. Sixty-four percent of Americans and 73% of Europeans think foreign assistance also strengthens democracy in developing countries. When it comes to Africa specifically, Americans and Europeans see a lowering of trade barriers contributing to threat reduction (62% and 67%, respectively) and don’t see it as a source of job loss at home (46% and 37%).

EXCLUDING BRITISH, EUROPEANS MORE THREATENED BY CHINA THAN AMERICANS ARE
About half of Americans and 55% of Europeans see China’s growing economy as a threat. However, the European average is tempered by the extremely bullish sentiment of the United Kingdom, where 34% of respondents see China as a threat and nearly 60% see it as an opportunity. Sixty-four percent of French, 62% of Slovak, 60% of Italian, 59% of Polish, and 57% of German respondents feel threatened by the growth of the Chinese economy. India, the other big rising economy, is largely seen as an opportunity (69% U.S., 56% EU).

MOST SEE IMMIGRANT WORKERS AS BURDEN ON SOCIAL SERVICES
Sixty-eight percent of Americans and 59% of Europeans view immigrant workers as a burden on social services. Sixty-three percent of Americans and 57% of Europeans believe that they reduce the wages of national unskilled workers. Polish and Slovak respondents express the greatest concern over the negative impact on unskilled-worker wages (67% and 66%, respectively), and majorities in all other countries except France (41%) take this view.

REPUBLICANS MORE ANXIOUS OVER IMMIGRATION
More Republicans than Democrats are concerned over the negative impact of immigrants on domestic-worker wages for unskilled and skilled workers (66% and 55% of Republicans versus 62% and 46% of Democrats, respectively). Fifty-nine percent of Republicans believe that immigrants limit domestic job opportunities compared to only 51% of Democrats. Eighty-one percent of Republicans consider immigrants a burden on social services compared to 61% of Democrats.

“TRADE” NOT AS THREATENING TO JOBS AS OUTSOURCING, IMMIGRATION, AND CURRENCY MANIPULATION
Outsourcing is a form of international trade. However, when Americans and Europeans were asked whether outsourcing or trade causes job loss, outsourcing is seen as being substantially more responsible for job loss than trade is. Majorities of American, German, French, and Italian respondents indicate that outsourcing was among the top reasons for job loss. Immigration and currency manipulation are also viewed as bigger causes of job loss than trade, with about one quarter of Americans and Europeans indicating these as leading causes of job loss.

METHODOLOGY
TNS Opinion was commissioned to conduct GMF’s Perspectives on Trade and Poverty Reduction survey in a total of seven countries (France, Germany, Italy, Poland, Slovakia, the United Kingdom, and the United States). Computer Assisted Telephone Interviews (CATI) were used in all countries except in Poland and Slovakia where interviews were conducted face-to-face due to the low phone penetration rate. In all countries a random sample of approximately 1,000 men and women, 18 years of age and older, were interviewed. Interviews were conducted between September 10, 2007, and September 24, 2007.

(1) Unless otherwise noted, all Europe-wide percentages are weighted on the basis of size of the adult population in each country and refer to the combined responses of France, Germany, Italy, Poland, Slovakia, and the United Kingdom for 2006 and 2007. Europe-wide percentages for 2005 include these countries minus Slovakia.

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