International trade

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- the WTO wants to privatise public utilities and services (e.g. water, postal services, education, energy and health care).

Privatisation = the selling off of public assets to private corporations.

- the WTO is destroying the environment: local and national environmental protections are said to be “barriers to trade” and are dismantled (démontées)

The WTO is accused of attempting to deregulate industries including logging, fishing, water utilities, and energy distribution → further exploitation of these natural resources.

- the WTO is killing people: “Trade Related Intellectual Property” rights (TRIPs), vs. health and human lives.

The WTO is said to have protected the “right to profit” of pharmaceutical companies against governments seeking to protect their people’s health by providing lifesaving medicines in countries in areas like sub-Saharan Africa.

- How has international trade grown over the years?

- Developed countries have dominated world trade.

- Yet, this pattern (modèle) is changing.

- 2000: developing countries = 23% of all world merchandise trade

- 2014: 43%

- explanation: countries with the fastest growth in exports are in the developing world.

What are the BRICS countries?

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- 2001, Goldman Sachs: a group of developing and newly industrialized countries (BRICs) could come to dominate Western economies by 2050.

- BRICS = Brazil, Russia, India, China, and South Africa.

- nearly half of the world's population

- a quarter of the world's landmass (masse continentale ; terre émergée)

- a fifth of the world's GDP

- formation of the New Development Bank = loan each other and other countries money for development unrestricted by Western influence.

- 2013: China became the largest trade country in the world + the second largest economy.

- India's expansion → prosperity of the middle class in recent years. 10 of the 30 fastest growing urban areas are located in India.

- Brazil = oil and iron rich (fer riche) → the 6 th largest economy in the world (2012).

- Russia: economic difficulty + a declining population + recent sanctions + geopolitical problems → isolated.

- South Africa (added to the group in 2010): the strongest African economy + a significant foothold (point d’appui) for China and India.

Will this growth be sustainable? (viable / durable)

➔ Problem #1: resources are depleted. (appauvries, épuisées)

-a growing population will rapidly deplete them and could sabotage the ability to grow at the same pace (rythme, cadence)

➔ Problem #2: the overt dominance of China's economy.

- without China, the BRICS would have little political power.

- China has veto power over BRICS issues.

➔ Problem #3: mixed records (bilan mitigé) on human rights + ongoing (en continu) conflicts with neighboring countries.

Yet, even if they don't become the world's dominant economies, they'll still have far surpassed any expectations from the 20th century.

→ Exports from the BRICS have risen rapidly:

- 1992: 5.4%

- 2014: 18.3%

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- Europe = an important geographical center for trade:

- 2010-2015: 36% of the value of both exports and imports.

- Africa = significant growth in trade since the early 1990s yet growth in trade has been negligible in the poorest African countries.

- 2010-2015: 3.25% of the value of both exports and imports.

- Middle East: (Moyen orient)

- 2010-2014: 6.8% (exports) vs. 3.9% (imports).

- oil prices are volatile → impact on export earnings.

• 1990s: oil prices tended to fall → weak (faible) growth in the value of exports

• 1999-2000, 2003-2008, 2010-201: oil prices surged. (ont grimpé)

• 2014: oil prices plummeted. (dégringolé , chute)

4. The composition of international trade

4.1. Trade in goods

→trade in goods includes all goods which add to, or subtract from, the stock of material resources of a country by entering its economic territory (imports) or leaving it (exports). (OECD)

- Manufactured goods ~ 2/3 of all merchandise exports.

- Fuels and mining products ~ 20% (carburant et produit minier)

- Agricultural products ~ 10%.

4.2. Trade in services

→services = transport (freight (fret / marchandise) and passengers), travel, communications services, construction services, insurance and financial services, computer and information services, cultural and recreational service...

→Trade in services → exchange of ideas, know-how (savoir faire / connaissances) and technology.

- What are the benefits of international trade?

- Countries specialise.

- They