The U.S. and President-elect Donald Trump have more to lose taking a protectionist path than the emerging economies that would be affected by a renewed anti-globalization policy, the chairman of Societe Generale told CNBC.
There are widespread concerns that Trump's promises to rip up trade agreements, including the Trans-Pacific Partnership, will affect the economic potential of emerging markets. This is particularly sensitive at a time when such economies are already struggling to keep previously-seen growth rates.
"If (emerging economies) start developing a free trade zone among Asian countries, for instance, in the end it will be the U.S. economy which will be penalized by its own measures," Lorenzo Bini Smaghi, chairman of Societe Generale, told CNBC on Tuesday.
The former member of the European Central Bank's monetary policy committee said that "there are growing areas" in emerging markets. For example, stocks in soft commodities, such as palm oil and rubber, should benefit from Trump's election.
President-elect Trump promised to put forward a package of fiscal stimulus, but his protectionist rhetoric could harm the U.S. middle-class, Bini Smaghi said.
"And then there is the protectionism threat, which is not clear how it will be implemented, it's not clear either how it will help the middle class in the U.S," he added.
Nonetheless, Trump's fiscal expansion, along with a less accommodative monetary policy, should strengthen the dollar and weaken the euro - a "positive scenario" for the European Central Bank.
Smaghi said that extending the quantitative easing program "is unavoidable" but amid such environment ECB President Mario Draghi won't have to do too much further bond-buying.