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International Business News
Governments urged to avoid protectionism in slump
AFP, Washington
Governments came under mounting pressure on Tuesday not to resort to protectionism to cushion themselves from the impact of the economic slowndown as unemploy ment levels grew and exports dwindled.
While Australia unveiled a stimulus package designed to safeguard tens of thousands of jobs, President Barack Obama was urged to ditch a "Buy America" clause in his own 900-billion-dollar bid to revive the ailing US economy.
Spain meanwhile became the latest leading European country to announce a sharp rise in unemployment, with the jobless rate hitting a 12 -year high.
The head of the International Monetary Fund expressed hope that the world economy could stage a rapid recovery once it "regains its footing" but also urged countries to avoid protectionism during the slump.
"Beggar thy neighbour policies will never give a good result," Dominique Strauss-Kahn said in a speech in Tokyo.
The "Buy America" clause in Obama's stimulus package has sparked warnings of grave consequences from traditional US allies if it is approved by Congress.
African leaders discuss economic crisis
AFP, Addis Ababa
African leaders discussed Tuesday ways to ride out the global economic downturn, fearful that 2009 will see trade hit and reductions in much-needed aid and developmentfinance.
Earlier sessions of the African Union summit were dominated by the election of Libya's Moamer Kadhafi to head the bloc as well as the conflicts and political strife blighting the continent, but the final day was being devoted to money matters.
Leaders gathered in the Ethiopian capital Addis Ababa warned that Africa would struggle to cope with the global downturn, which could end years of growth in many countries driven by record commodities prices.
"It has now become clear that the global economy is undergoing a deep crisis. Every week the prognosis for the world economy is a bit worse," Ethiopian Prime Minister Meles Zenawi said at the start of the debate.
As demand has fallen in industries around the world, commodity prices have also come crashing down, creating new problems for the continent's big exporters.
Saudi prince says Gulf jobs should go to Arabs
AFP, Abu Dhabi
Gulf Arab states, where foreigners make up half the workforce, should give employment preference to their citizens over expatriate labour, a prominent member of the Saudi royal family said on Monday.
"We should review our economic policies in a serious manner to build national economies that benefit their people and not the millions of foreign workers," Prince Turki al-Faisal bin Abdulaziz said at a conference on human resources in Abu Dhabi.
Prince Turki is chairman of the King Faisal Centre for Research and Islamic Studies. He is a former ambassador to Washington and London and before that spent more than 25 years as the head of Saudi Arabia's intelligence service.
"It's not understandable that there be one unemployed Gulf national in countries that receive millions of foreign workers," he said.
The six countries of the Gulf Cooperation Council (GCC) have witnessed six-years of growth fuelled by a surge in the price of oil -- their main source of income — triggering a construction and services industries boom that required millions of foreign workers.
EU ups pressure on US over Buy American stimulus plan AFP, Washington
The European Union ratcheted up pressure Monday against US President Barack Obama's Buy American stimulus plan, sending letters to the White House and Congress in protest.
The EU ambassador toWashington, John Bruton, told AFP he had written Monday to the leaders of Congress and the Obama administration expressing concerns about government legislation to restrict procurement to American goods, including steel and textiles.
"We regard this legislation as setting a very dangerous precedent at a time when the world is facing a global economic crisis," Bruton said.
The Senate is considering an 888-billion-dollar stimulus plan that restricts stimulus-funded infrastructure projects to use only US manufactured goods.