The Importance of Trade

International Trade

Amidst the current political turmoil, it is hard to get a clear perspective on trade issues.  Any trading business wrestling with the uncertainties and impact of Brexit and trade disputes does not need a reminder of the importance of removing friction from trade.  However, to provide some balance I am taking the unusual step of recommending an article and including a link.  In this case: ‘Tensions highlight the importance of global trade’ by Tim Bowler from BBC News, which is worth a read in full.

https://www.bbc.co.uk/news/business-50041839

A number of the themes touched on in the article have been referenced in my recent blogs.  Notably the current challenges to a longstanding consensus in trade; the framework behind trade agreements; the context of some trade disputes and the impact of severance to established agreements.  Underpinning the article’s narrative is basic trade theory as outlined in the early units of Trade & Export Online.

The tone is more positive than much that has been on offer in recent times and it 

  • contains lovely examples of inter-connectedness in practice;
  • offers reasons to be more optimistic about the opportunities for smaller businesses in the digital age;
  • notes that for all the progress made in agriculture and manufacturing sectors under trade agreements there is still some way to go on services.

Let’s hope that once the dust settles in December that politicians protect this legacy and truly address the trade imperative.

About the author

David Millett is a coach and trainer who works regularly for RWA. He has a long experience in trade issues with a background in banking, where he was Head Of Trade Product Management for the Royal Bank of Scotland, before becoming Head of Business Development for UK Export Finance’s short-term business. David is a Fellow of the Institute of Export and former Council Member for the International Chamber of Commerce UK and the British Exporters Association.

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