SURVEY WEBSITE FOR KEY FINDINGS REPORT, TOPLINE DATA

Contact: Will Bohlen, +1 202 745 6691, wbohlen@gmfus.org
Elizabeth Boswell Rega, +32 2 238 5270, eboswellrega@gmfus.org

WASHINGTON, DC (December 5, 2006) - Despite the suspension of the Doha Round of World Trade Organization talks in July 2006, a survey released on December 5, 2006 shows that most Americans and Europeans support the lowering of tariffs and other trade barriers.^[1]

The German Marshall Fund of the United States' Perspectives on Trade and Poverty Reduction, in its third year, shows that most Americans and Europeans also appreciate the economic benefits of freer trade and believe it contributes to democracy, global stability, and prosperity. Compared to last year, views on globalization are more favorable in every country surveyed, and majorities in each favor foreign companies investing in their markets. However, when asked about the impact of freer trade on jobs and businesses, support for trade weakens. Many Americans and Europeans expressed anxiety over import dependency, and most see China's economy as a threat.

A project of GMF's Economics 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 subsidies, development aid, immigration, and the impact of freer trade domestically and internationally.

Key findings include:  

Economic optimism rising: Despite majorities in nearly every country remaining dissatisfied with the economy, 41% of Americans and 27% of Europeans are satisfied with their economy compared to 30% and 20%, respectively, last year.

Free trade benefits recognized: Seventy-eight percent of Americans and 82% of Europeans believe that freer trade enables access to new markets for national products, while 78% of Americans and 76% of Europeans believe that freer trade leads to lower prices and more product choices for consumers. Seventy-one percent of Americans and 72% of Europeans believe freer trade makes the world more stable by putting people from different countries in contact with each other.

Globalization fears weaken, but anxiety over jobs: Every country had more favorable views on globalization than in 2005: Poland (34% to 49%), Italy (51% to 61%), Germany (46% to 53%), the U.K. (47% to 53%), the U.S. (46% to 52%), and France (43% to 47%). But nearly 60% of American and half of European respondents believe that freer trade costs more jobs than it creates.

Americans and French apprehensive over open markets: American and French respondents wish to keep trade barriers to protect businesses, even if this means slower growth. They showed the highest levels of opposition to trade liberalization - 55% of French and 31% of American respondents do not favor freer trade. American (59%) and French respondents (58%) say freer trade costs jobs. But French respondents also showed the lowest confidence in freer trade providing consumer benefits (63%), helping poor countries (39%), increasing global prosperity (49%), and supporting democracy (45%). More Americans believe it has consumer benefits (78%), helps poor countries (70%), increases global prosperity (68%), and supports democracy (65%).

China viewed as threatening: Fifty-nine percent of both Americans and Europeans believe that China's growing economy is a threat because of competition from low-cost Chinese products and U.S. and European firms relocating to China. Seventy percent of French, 67% of Polish, 66% of Italian, and 65% of Slovak respondents expressed fears over China's emerging economy.

Skills gap worries: About 94% of Americans and Europeans believe that investing in education, job training and technology will help them compete in the global economy - fewer than those who believe that pro-business tax and regulation reforms (74%), trade and FDI promotion (64% and 70%), or making it easier to hire and fire workers (49%) will help improve competitiveness. Americans and Europeans ranked these policy opinions similarly in descending order of priority.   

Aid for trade a win-win: Three out of four Americans and Europeans are keen on promoting international trade with poor countries, a level of approval that is in line with transatlantic support for development assistance. Just as many Americans and Europeans believe "aid for trade" - that is aid that helps poor countries trade - will benefit their own economies.

Immigration pros and cons: In every country surveyed unskilled-worker wages are seen as more threatened by immigration than skilled-worker wages, but the extent to which countries believe that there is such an impact on worker wages overall varies. Sixty-two percent of Americans and 54% of Europeans believe that immigrant workers create new businesses that add value to the economy and just over half of Americans and Europeans believe that immigrant workers contribute to the success of industries like science, medicine, and technology.

Methodology: TNS Opinion was commissioned to conduct the GMF 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 was used in all countries except in Poland and Slovakia, where interviews were conducted face-to-face due to the lower phone penetration rates. In all countries a random sample of approximately 1,000 people, 18 years of age and older, were interviewed. Interviews were conducted between 5 September 2006 and 25 September 2006.

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The German Marshall Fund of the United States (www.gmfus.org) is a nonpartisan American public policy and grantmaking institution dedicated to promoting greater cooperation and understanding between the United States and Europe. Based in GMF's offices in Washington, DC, and Brussels, and operating in partnership with the William and Flora Hewlett Foundation and the Rockefeller Foundation, GMF's Economic Policy Program is an initiative to promote greater cooperation between the United States and Europe on domestic and international trade and agricultural policies as vital instruments of global prosperity.

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[1] All references to Europe refer to France, Germany, Italy, Poland, Slovakia and the United Kingdom, which were covered in this year's survey. Note that Slovakia is new in the survey this year and only 2006 data exists for this country.