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

TEDx Talks

17 May 201711:07

EducationalLearning

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TLDRThis talk challenges the conventional view of trade deals, arguing that they are not primarily about trade, tariffs, or quotas. Instead, they are about shaping global rules and standards for efficiency and prosperity. Starting from the post-WWII Bretton Woods agreement, the speaker traces the evolution of trade policies to the modern era, emphasizing the shift from tariff reduction to addressing non-tariff barriers. The discussion highlights the tension between global efficiency and national sovereignty, urging us to consider the kind of world we want these trade rules to create.

Takeaways

🌐 Trade deals are not conventionally about trade, but about creating global rules and standards.
🕊️ The modern era of free trade began in 1944 at Bretton Woods with the aim of fostering world peace through economic interdependence.
📈 The General Agreement on Tariffs and Trade (GATT) was pivotal in creating globalization, outsourcing, and multinational corporations.
🚀 From 1948 to the late '70s, global GDP experienced explosive growth, averaging about 7% per year due to GATT.
🔄 The Uruguay Round in the '80s focused on global efficiency rather than just reducing tariffs and quotas.
🛡️ Non-tariff barriers became a significant focus, emphasizing the need for a level playing field within countries for imported goods.
🌟 The World Trade Organization (WTO) replaced GATT in 1995, ushering in a new era of trade agreements focused on efficiency.
🔄 Powerful trade agreements like NAFTA and CAFTA, along with bilateral investment treaties, were driven by the philosophy of non-tariff barriers.
🤝 The discussion on trade has evolved to include domestic policies, environmental laws, and pharmaceutical regulations as part of trade negotiations.
🌍 The debate over trade now involves global efficiency versus national sovereignty and the reflection of local preferences in policy-making.
🤔 The current conversation about trade is confusing, with free trade advocates opposing specific agreements like the Trans-Pacific Partnership, indicating a complexity beyond simple pro or con stances.

Q & A

What is the central counterintuitive idea presented in the script about trade deals?
-The central idea is that trade deals are not primarily about trade in the conventional sense, but rather about establishing global rules and standards that influence various aspects of domestic policies and laws.
When did the modern era of free trade begin, according to the script?
-The modern era of free trade began around 1944, with the meeting at Bretton Woods, New Hampshire.
What was the main motivation behind the establishment of the General Agreement on Tariffs and Trade (GATT)?
-The main motivation was to foster world peace by creating economic interdependence among nations, preventing them from going to war with each other due to their reliance on each other's resources.
How did the GATT contribute to the creation of the current global economy?
-The GATT led to globalization, outsourcing, and the rise of multinational corporations, shaping the world economy as we know it today.
What significant change occurred in the late '70s and early '80s regarding international trade discussions?
-A new generation of liberal economists gathered for the Uruguay Round, focusing on global efficiency and addressing non-tariff barriers to trade.
What are non-tariff barriers and why were they a focus in the modern era of trade?
-Non-tariff barriers refer to regulatory and administrative obstacles that can distort trade even when tariffs are low. They were a focus because they can create an uneven playing field for imported goods within a country.
What replaced the GATT in 1995 and what was its significance?
-The World Trade Organization (WTO) replaced the GATT, signifying a shift towards a more formalized and rule-based international trade system.
What is the main philosophy that governed trade agreements from the 1990s onwards?
-The main philosophy was to strip away non-tariff barriers and make the world's economy as efficient as possible.
What are some examples of trade disputes mentioned in the script?
-Examples include the dispute over genetically modified beef between the US and Europe, and the 'dolphin-safe' tuna labeling issue between the US and Mexico.
How does the script suggest we should think about trade discussions today?
-The script suggests that we should think about trade as a discussion about global rules and standards, rather than simply being for or against free trade or globalization.
What is the final message the speaker wants to convey about the importance of the rules we pass in trade agreements?
-The final message is that the rules we pass in trade agreements shape the world we live in, and we should consider what kind of world we want those rules to create, whether it be global efficiency or global prosperity for all.

Outlines

00:00

🌏 The True Nature of Trade Deals

The speaker introduces the counterintuitive idea that trade deals are not primarily about trade in the traditional sense. They argue that these deals don't focus on tariffs, quotas, GDP growth, or jobs as commonly discussed. The talk begins with the origins of modern free trade at the 1944 Bretton Woods conference, where the goal was to create an economy that would promote world peace through economic interdependence. The General Agreement on Tariffs and Trade (GATT) emerged from this idea, leading to globalization, outsourcing, and the rise of multinational corporations. The speaker highlights the period of rapid global GDP growth post-GATT and sets the stage for discussing the evolution of trade agreements.

05:02

📚 The Evolution of Global Trade Policies

This paragraph delves into the Uruguay Round, which aimed to enhance global efficiency rather than just economic interdependence. The focus shifted to addressing non-tariff barriers, which could distort competition even if tariffs were low. The World Trade Organization (WTO) replaced the GATT in 1995, marking a new era in trade agreements. The speaker discusses powerful trade agreements like NAFTA and CAFTA, and thousands of bilateral investment treaties, all driven by the philosophy of eliminating non-tariff barriers for global efficiency. The discussion contrasts traditional trade concepts with the modern focus on aligning domestic policies with global efficiency, using examples such as genetically modified beef and 'dolphin-free' tuna labels to illustrate the complexities of modern trade disputes.

10:03

🛣️ The Confusion and Future of Trade Discussions

The final paragraph addresses the current confusion in national trade discussions, particularly around the Trans-Pacific Partnership. The speaker points out the paradox of presidential candidates supporting free trade but opposing this specific trade deal, and various organizations opposing elements of it. The confusion arises from a misunderstanding of what trade discussions are truly about: not just trade, but global rules and standards. The speaker emphasizes that the conversation should be about the kind of world we want, focusing on whether global efficiency or global prosperity should be the paradigm. They conclude by reminding the audience that the rules we pass shape the world we live in, and we should thoughtfully consider what rules we want to embrace.

Mindmap

Keywords

💡Trade deals

Trade deals refer to formal agreements between countries to regulate the exchange of goods and services. In the video, it's suggested that these deals are not conventionally about trade but rather about establishing global rules and standards. An example given is that they aren't simply about tariffs or quotas but encompass broader concepts like non-tariff barriers.

💡Economic interdependence

Economic interdependence is the mutual reliance of countries on each other for trade and economic well-being. The video explains that this concept was central to the post-World War II economic order, with the idea that if nations were economically linked, they would be less likely to engage in warfare.

💡Bretton Woods

Bretton Woods refers to the 1944 conference in New Hampshire where the foundations for the post-war international monetary system were established. The video uses this term to illustrate the origin of modern free trade and the intention behind creating economic interdependence for world peace.

💡GATT

GATT stands for the General Agreement on Tariffs and Trade, which was established to reduce tariffs and other trade barriers. The script mentions GATT as the document that initiated globalization and the formation of multinational corporations.

💡Globalization

Globalization is the process of increased interconnectedness and interdependence among countries. The video discusses how GATT led to globalization, which in turn created the modern landscape of multinational corporations and global supply chains.

💡Non-tariff barriers

Non-tariff barriers are measures other than tariffs that can impede trade between countries. The video explains that these barriers can include domestic laws and regulations that create an uneven playing field for imported goods, which became a focus in the Uruguay Round of trade negotiations.

💡Uruguay Round

The Uruguay Round refers to the eighth round of multilateral trade negotiations held from 1986 to 1994. The video describes this as a second Bretton Woods, focusing on global efficiency and addressing non-tariff barriers to trade.

💡World Trade Organization (WTO)

The WTO is an international organization that deals with the global rules of trade between nations. The video points out that the WTO replaced GATT in 1995 and has been central to the enforcement of global trade rules and the reduction of non-tariff barriers.

💡NAFTA and CAFTA

NAFTA (North American Free Trade Agreement) and CAFTA (Central American Free Trade Agreement) are regional trade agreements that reduce or eliminate tariffs among member countries. The video mentions these as examples of powerful trade agreements influenced by the philosophy of non-tariff barriers.

💡Trans-Pacific Partnership (TPP)

The TPP is a proposed trade agreement among numerous Pacific Rim countries, including the United States. The script notes the confusion surrounding the TPP, with some presidential candidates being in favor of free trade but against the TPP itself.

💡Global efficiency

Global efficiency refers to the idea of maximizing the productivity and effectiveness of the global economy. The video discusses how the philosophy of global efficiency has driven trade agreements since the 1990s, aiming to streamline and optimize economic activities across borders.

Highlights

Trade deals aren't really about trade in the conventional sense.

Trade deals are not about tariffs, quotas, GDP growth, or jobs.

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

Economic interdependence was a key concept to foster world peace.

GATT, established four years after Bretton Woods, created globalization and multinational corporations.

Global GDP grew by about 7% per year from 1948 to the late '70s.

The Uruguay Round in the '80s focused on global efficiency rather than world peace.

Non-tariff barriers became a central concept in trade agreements.

The World Trade Organization replaced GATT in 1995, focusing on non-tariff barriers.

Powerful trade agreements like NAFTA and CAFTA were influenced by the global efficiency philosophy.

Trade discussions have shifted from tariffs to domestic policies and regulations.

The GMO beef dispute between the US and Europe exemplifies the clash of domestic policies with global efficiency.

The 'dolphin-safe' tuna label controversy shows the complexity of global trade rules.

The current conversation about trade is confused and not solely about trade but global rules and standards.

The Trans-Pacific Partnership is an example of the current debate on global trade rules.

The rules we pass shape the world we live in, and trade discussions should consider what rules we want to embrace.

We should think about what kind of world we want, focusing on global prosperity for all.

Transcripts

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

Takeaways

Q & A

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

When did the modern era of free trade begin, according to the script?

What was the main motivation behind the establishment of the General Agreement on Tariffs and Trade (GATT)?

How did the GATT contribute to the creation of the current global economy?

What significant change occurred in the late '70s and early '80s regarding international trade discussions?

What are non-tariff barriers and why were they a focus in the modern era of trade?

What replaced the GATT in 1995 and what was its significance?

What is the main philosophy that governed trade agreements from the 1990s onwards?

What are some examples of trade disputes mentioned in the script?

How does the script suggest we should think about trade discussions today?

What is the final message the speaker wants to convey about the importance of the rules we pass in trade agreements?