36
Implications of global trade
By Hans Björstrand
President, Bufab
When we asked, for the last issue, for opinions on the subject of antidumping, we received from Hans
Björstrand a characteristically thoughtful and broad ranging article, which we felt should be published
in full.
Global world trade has increased several the last ten years we have seen great growth
times during the last twenty five years. This in industrialisation, above all in China, which
has, among other things, developed a has become an enormous part of the world’s
considerably industry. The effect of this is that many
higher industries in Europe and USA have relocated
there. Through subsidy by the Chinese
government, cheap labour and undervalued
currency they have won a much
larger share of the world’s
production.
The damage caused by this
The connection between environment and
situation has not been in focus
economy will surely grow also. As an example
since China, as the leading
we can see how Toyota has got a big
engine, has drawn the
advantage on the auto industry by offering
world and the world’s
comfort and environmental friendliness
industry to new heights
through hybrid technology. Many countries in
during this century. As
Europe are taking advantage of the
the rush subsides we
developments in China by greatly expanding
are beginning to
exports to China. Germany could consider
understand the
itself the world’s largest exporter, measured in
amplitude of this
euros, as its exports to China grow. Perhaps
situation. The USA has
there is some limit to German exports to
made itself strongly
China as earnings in China are far below
dependent on China
Europe, making German and other European
and the threat is great
goods too expensive for many Chinese
for its remaining
consumers. This difference is only part of the
industries. In cities like
equation in relation to the entire market
Detroit we can see a
strategy. Today, industries are relocating to
decrease in population
China not only for lower costs but also to
because of industrial loss
reach a giant consumption market.
and the population now finds
In looking at the world, I wish to clarify my
itself working in Walmart with
view on antidumping of fasteners. All
much lower wages than
subsidies, export supports and other contrived
previously. Walmart, of course, as a
methods always harm the market. Let us not
huge single buyer of Chinese goods,
forget that almost one half of the EU budget
would be importing country number six in
goes to subsidies to the European agriculture.
the world if it were a nation.
This creates very large problems for less
Besides the financial sections of the global
developed countries. The anti-dumping action
living world trade the environment is paying a great
also comes at a bad time as we are
standard than earlier, price for China’s wealth. Transportation
experiencing large price increases from China
but above all, the number of poor people in represents a great deal of the carbon dioxide
as the world price for steel has shot up. The
the world has decreased. emissions and this represents a bigger hazard
currency value in China has appreciated and
Still, there are a lot of less fortunate than the financial consequences. The USA and
the country has lowered their subsidies.
people in the world who have not got their China must both begin to deal with this issue
Shouldn’t we be grateful to China?
share of the world’s increasing wealth. During before it is too late.
In any event we should follow the
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