Fears that globalisation may result in fewer jobs and lower living standards are not backed up by the evidence, according to the European Union's economic and monetary affairs commissioner.
"There is also no evidence that a stronger increase in openness could be related to a higher increase in unemployment," Joaquin Almunia said in a note on his EU Economy Review for 2005, due to be released shortly.
Mr Almunia's comments coincide with flagging attempts among leading nations to reach a global trade pact as the United States and others press the EU to open up its farming sector.
The review this year will be focused on economic globalisation and show how the 25-nation bloc can respond to this phenomenon adequately and address widespread fears that it is a threat to jobs and wages, the note said.
"The report shows that upon closer inspection many of the feared negative effects of globalisation for jobs, wages and living standards are not supported by the evidence," Mr Almunia says in the note.
Globalisation and its perceived impact on jobs has become a worry in member states where unemployment remains stubbornly high, such as France. But foreign direct investment data does not show significant outflows from the EU to low wage countries, and the overall impact of China should not be exaggerated, particularly in high-technology areas, Mr Almunia said.
The challenge of adjusting to globalisation should not be played down either, Mr Almunia said, adding that it can hit some sectors and regions hard and the EU must be more proactive.
"But resorting to protectionism and trying to shield jobs and industries from international competition, as contemplated by some, is simply not a viable option," Mr Almunia said.
"It will only reduce economic efficiency, income and employment opportunities in the long run. And it will weaken our hand in opening up markets in other countries to EU exports," Mr Almunia said.