What global trade deals are really about (hint: it's not trade) | Haley Edwards | TEDxMidAtlantic

Summary

This talk challenges the conventional understanding of trade deals, arguing they are less about traditional trade aspects like tariffs and more about shaping global rules and standards. It traces the evolution from post-WWII economic interdependence to modern focus on global efficiency, as seen in organizations like the WTO. The speaker emphasizes current trade debates are not just about economic gains but also about the societal values these global rules reflect, such as environmental protection and public health.

Takeaways

• 🌐 The concept of trade deals has evolved to encompass more than just traditional trade aspects like tariffs and quotas; they now significantly influence global rules and standards.
• 📈 The modern era of free trade originated in 1944 at Bretton Woods, with the primary goal of fostering world peace through economic interdependence.
• 🔄 The General Agreement on Tariffs and Trade (GATT), established post-World War II, was pivotal in creating the foundations of globalization and the modern structure of multinational corporations.
• 📉 After the initial period of rapid global GDP growth, the focus of trade discussions shifted in the late '70s and '80s towards global efficiency, leading to the Uruguay Round and the consideration of non-tariff barriers.
• 🏛 The World Trade Organization (WTO), formed in 1995, replaced GATT and further emphasized the reduction of non-tariff barriers to enhance global economic efficiency.
• 🌱 Trade disputes, such as the genetically modified (GMO) beef controversy between the US and Europe, highlight the tension between national sovereignty and global efficiency standards.
• 🐬 The 'dolphin-safe' tuna labeling case in the US illustrates how domestic regulations can conflict with global trade rules, as adjudicated by the WTO.
• 🤔 The current discourse on trade is complex and often confusing, with positions on trade agreements like the Trans-Pacific Partnership (TPP) reflecting a mix of support and opposition based on various global rules and standards.
• 🌟 The speaker emphasizes that trade discussions are fundamentally about the rules that govern our global economy, and these rules are what define the kind of world we live in.
• 📋 The rules we embrace through trade agreements shape our global economy, and it's crucial to consider whether we prioritize global efficiency or other values like prosperity for all.

Q & A

What is the counterintuitive idea about trade deals presented in the script?

The counterintuitive idea is that trade deals aren't really about trade in the conventional sense. They are not primarily about tariffs, quotas, GDP growth, or even jobs as commonly discussed.

When and where did the modern era of free trade begin as per the script?

The modern era of free trade began in 1944 at a conference in Bretton Woods, New Hampshire.

What was the main objective behind the concept of economic interdependence discussed at Bretton Woods?

The main objective was to create an economy that fosters and necessitates world peace by making nation states dependent on each other for supply chains, thus preventing war.

What significant document emerged from the idea of economic interdependence post-World War II?

The General Agreement on Tariffs and Trade (GATT) emerged about four years after the Bretton Woods conference.

How did the GATT contribute to the global economy from 1948 to the late 1970s?

The GATT contributed to an extraordinary period of disruption, convulsion, and prosperity, with the global GDP growing by about seven percent per year.

What was the focus of the Uruguay Round, considered the second Bretton Woods?

The focus of the Uruguay Round was global efficiency, aiming to continue boosting the global economy as it had been over the previous 30 years.

What is meant by 'non-tariff barriers' in the context of modern trade deals?

Non-tariff barriers refer to the idea that even if tariffs are low, a product may still face an uneven playing field once inside a country due to various domestic policies and regulations.

What major global organization was established in 1995 as a result of the shift in trade philosophy?

The World Trade Organization (WTO) was established in 1995, replacing the GATT.

What are some examples of powerful trade agreements that were influenced by the philosophy of non-tariff barriers?

Some examples include the North American Free Trade Agreement (NAFTA), the Central American Free Trade Agreement (CAFTA), and numerous bilateral investment treaties.

How does the script suggest we should view the current discussions on trade?

The script suggests we should view current trade discussions as being about global rules and standards, rather than simply being for or against free trade or globalization.

What is the key takeaway the speaker wants the audience to consider about trade?

The key takeaway is that trade discussions are fundamentally about the rules we want to embrace and how they serve our vision for the world, such as global efficiency versus global prosperity for all.